During October, gas prices in Florida were 25 cents lower, thanks to a “tax holiday” signed by Governor DeSantis. That tax expires this morning. I’m sure the headlines from the MSM will be how it is DeSantis’ fault that Florida gas prices just went up by 25 cents a gallon.
Meanwhile, Joe Biden is slamming oil companies for making “record profits” while “price gouging” the American public.
Exxon Chevron made a combined profit of $29 billion for the second quarter for all sales of everything they sell, worldwide. During that same quarter, Americans used about 35 billion gallons of gasoline, meaning that the Federal government collected $7 billion in profits from the sales of gasoline. Then there are the taxes on other Exxon products: oil, natural gas, diesel, propane, and more. Who is making the record profits here?
Ronald Reagan summed it up nicely: Tax and spend.
Meanwhile, the US has less than a three week supply of diesel fuel, which is less than half of the normal amount. That doesn’t mean we won’t have any diesel in three weeks. What it means is that supply is short. That means that the law of supply and demand dictates a rise in diesel prices. Farmers rely on tractors, and our supply lines rely on trains and trucking, all of which depend on diesel. This will mean that the prices on everything will soon begin to climb. Right now, diesel stands at $5.25 a gallon in my area. Let’s see how that goes.
Anonymous · November 1, 2022 at 9:20 am
Also #2 heating oil is the same as diesel. So a cold snap will stretch supply.
WDS · November 1, 2022 at 9:35 am
“Face other restrictions”
Democrats love them some regulations, don’t they?
Skippy Bojangles · November 1, 2022 at 10:20 am
Diesel almost $6 a gallon local, gas has went up to $4 overnight after hovering around $3.80 a gallon.
Any military vehicles or equipment that run off of diesel in the 51st state Ukraine? (sarc)
Just like the Ostfront (Eastern Front) for der Fuhrer, external lands come first before anything and their logistics will be taken care of by any means necessary.
It's just Boris · November 1, 2022 at 10:35 am
Progressives have made it abundantly clear they intend to shut down fossil fuel production in the US (and as side effects, extraction of feedstock for trivialities such as plastic and fertilizer).
What company in its right mind would make long-term investments in fossil fuel production – at any part of the process from ground to consumer – under those conditions?
Even if the administration changes trust has been broken and it will take a long time to recover confidence to seriously invest.
exile1981 · November 1, 2022 at 12:46 pm
When oil was under $20 a barrel two years ago and companies were bleeding money the government still wanted its taxes.
Paulb · November 1, 2022 at 6:10 pm
What Boris said.
Granted the folks I talk to are just at the low end of the oil trade, but by our lights, It would take bipartisan cooperation in congress, a presidential decree, federal loan guarantees AND the EPA’s cooperation (and maybe a restraining order) for a company to get approval to build a refinery. What kills me is that one of the largest, if not THE largest refinery in the US is sitting 90% shut down in Philadelphia (The butane storage and transfer unit is still functional I believe), rusting away because it’s not possible to get permits to update the equipment, and so there’s no financial incentive to do so. Philadelphia is lousy with refineries, and it’s a shame because they’re a pipeline hub to the rest of the US. It wasn’t unusual for us to pump oil at the Hog Island terminal at the Philly airport and send it 20+ miles to a storage tank, or into a booster line for one of the interstate pipelines.
In the meanwhile, fuel storage facilities in the US are being torn down as well, so the ‘average’ local storage regionally is declining anyhow. There’s a bidding war for oil storage tanks. Terminals make a great living on renting out their tanks to 3rd parties. But this is on a rapid decline. EPA permitting again. Part of the problem in the northeast is that there isn’t shit for storage. NYC alone lost 3 fuel terminals in the past 2 years, representing several million barrels of oil storage.
The theoretical break-even point under optimal conditions for a refinery is 10 years of operations. A medium sized-refinery would take more than a decade to permit, plan and build. So there’s 20 years before an oil major would see one penny in profit. In 10 years all the fuel mandates promised by the green weenies come to pass, even though most of them are bullshit. Still if someone tells you they’re going to shut you down, you should believe them. It would be stupid to invest in refining until the trashbags in DC are muzzled or neutered and forbidden from meddling.
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