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Summer Gas Prices Suddenly Rise ,25

Energy Secretary Announced Wants Higher Prices. Apparently goal to-Make “Clean Energy Competitive”

Prices need to get to European $7.50 up a Gallon To Make “Wind – Solar, Green competitive.




April 1, even tougher “summer” specifications for refineries to meet. EPA demands each meet a special formula for their Area. Fuel can be sold nowhere else.

Called a Boutigue blend, EPA says is the only formula that can be sold in each area. No outside shipped in. Many refineries report losing money because of EPA regulations and 3 refineries supplying the east coast area have guit this spring and a Philadelphia refinery has said closing in June if no buyer found.

None of recent have found buyers, no one wants a business forced to lose money by the government. There were over 300 U.S. refineries, and non have been built since 1976 because of EPA regulations. Over half have already gone out of business after losing billions.

When an eastern refinery quits the shortage is made up by shipping in from gulf coast or distant refineries which raises the eastern pump prices since it must now be shipped in.

Oil can be classified as heavy or light, and as sweet or sour. Brent crude, overseas oil is more expensive and a more heavey sour crude.

Light, sweet crude is easier and cheaper to refine, and this is exactly what the Bakken is supplying but is coming on line so fast railroads and existing pipe lines can not keep up and is selling at a discount in ND because of lack of infra structure to keep up with transporting out the rapid expansion of new production.

$25 a barrel cheaper (or more) for the refinery to buy if they can get it there, therefore currently local ND refinery is selling gasoline cheaper and Minnesota and South Dakota often have gas pump prices as much as a dollar lower then elsewhere around the country.

There’s plenty of heavy, sour crude available around the world, but refineries, have to make expensive changes to handle it.

Also the cost of refining diesel fuel is much higher than the price of refining regular gasoline.

The U.S. Department of Energy, says this is where your gasoline dollar goes:

Taxes: 13 cents vary some from state to state.

Distribution and Marketing: 8 cents
Refining: 14 cents goes up April 1.
Crude oil: 65 cents

read How Oil Refining Works.
http://en.wikipedia.org/wiki/Oil_refinery

Cheveron Canada Page on How Refinerys work…
http://www.chevron.ca/operations/refining/refineryworks.asp

Statements from Refinery Association:

The administration’s anti-fossil fuel policy is contributing to refinery closures and is putting thousands of Americans out of work,” said AFPM President Charles T.

Read more http://www.afpm.org/

 

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