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napi21 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 09:51 AM
Original message
Push for increase in biofuels causes oil industry to scale back refinery expansion
WASHINGTON (AP) _ A push from Congress and the White House for huge increases in biofuels, such as ethanol, is prompting the oil industry to scale back its plans for refinery expansions. That could keep gasoline prices high, possibly for years to come.

With President Bush calling for a 20 percent drop in gasoline use and the Senate now debating legislation for huge increases in ethanol production, oil companies see growing uncertainty about future gasoline demand and little need to expand refineries or build new ones.

(snip)

Only last year, the Energy Department was told that refiners, reaping big profits and anticipating growing demand, were looking at boosting their refining capacity by more than 1.6 million barrels a day, a roughly 10 percent increase. That would be enough to produce an additional 37 million gallons of gasoline daily.

But oil companies already have scaled those expansion plans back by nearly 40 percent. More cancelations are expected if Congress passes legislation now before the Sensate calling for 15 billion gallons of ethanol use by 2015 and more than double that by 2022, say industry and government officials.

http://www.planetsave.com/ps_mambo/The_News/Alternative_Energy/Push_for_increase_in_biofuels_causes_oil_industry_to_scale_back_refinery_expansion_200706188952/


So the oil companies won't increase capacity bcause they see biofuels stealing their business??? Isnt this counter productive? They want to keep the gas prices REAL HIGH to punish comsumers for looking for other power sources, and by doing so they're causing the comsumer to push even HARDER for anything other than oil? What the hell is wrong with these people????
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MADem Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 09:54 AM
Response to Original message
1. They only care about one thing--their profit margin. nt
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w4rma Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 10:08 AM
Response to Original message
2. They won't build them on their own. Mandate it. (nt)
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gratuitous Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 10:14 AM
Response to Reply #2
4. Mandate, nothing; nationalize the oil companies
Reduce "profit" to only one component among many for the production and supply of oil and oil products, and see where the price goes.
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tammywammy Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 10:21 AM
Response to Reply #4
7. I don't think that would change it much
The oil companies only have around a 10% profit margin. The problem is that they're selling too much product. We should all be cutting back on our use.
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tammywammy Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 10:13 AM
Response to Original message
3. Well, of course
Does this surprise anyone? The increased use of biofuels means decreased profit for them. Oil companies don't care about the people.
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napi21 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 10:17 AM
Response to Reply #3
5. I understand that, but wouldn't the wiser move be for the oil co's
to expand into the biofuel production? I mean, if I make horse shoes and it becomes obvious that the general population is swithching from horses to cars, I should switch my operation from making horse shoes to making tires! They keep the profits, they just come from a different source.
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tammywammy Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 10:19 AM
Response to Reply #5
6. I agree, it should be obvious
But most large corporations are lagging to get on the band wagon. Shouldn't it be more obvious to Ford & GM that there's a huge demand for higher mpg vehicles, yet those are just barely on the screen. :shrug: I guess it's the nature of the beast.
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johnaries Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 10:22 AM
Response to Original message
8. BS! they never had plans to expand refineries!
they decreased the number of refineries back in the '70's to increase profits. they have not done any expansion since so they could blame their greedy price hikes on "refinery capacity". they haven't expanded refineries in 40 years, and they weren't about to now. it's a LIE!
:mad: :grr: :nuke:
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aquart Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 10:32 AM
Response to Original message
9. Can you say, PHONY EXCUSE?
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harlinchi Donating Member (954 posts) Send PM | Profile | Ignore Mon Jun-18-07 10:33 AM
Response to Original message
10. "That's a nice low gas price you've got there, America!",...
...said Mr. Luk B.P. Exmobile, chewing a toothpick, his fedora brim turned way down while his brawny shoulders just about burst from his dark, cheap, shiny pin-striped suit. "I wouldn't want to see anything happen to it, know what I mean?"
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guitar man Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 10:33 AM
Response to Original message
11. sigh
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leftofthedial Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 10:38 AM
Response to Original message
12. I knew there had to be a real reason the political thugs were promoting biofuels
They are trying to ensure that "supply shortages" remains a viable alibi for gasoling price gouging for the coming decades
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MiniMe Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 11:09 AM
Response to Original message
13. BS, there never were any expansion plans, other than on paper
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lumberjack_jeff Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 11:16 AM
Response to Original message
14. Oh, Puuleaze!
Jesus Christ!

"What can we do, it's those socialist biofuel proponents teaming up with those fascist environmental wackos. If our hands weren't tied, we'd build lots of refineries and drive the price of fuel down under $1.00 a gallon. Yes, that'd remove most of the huge profits we're currently making from our refu... err... inability to build new refineries, but we have your best interests at heart. Honest."

Actually, this isn't all bad. Expensive gas promotes conservation and alternatives. I'd prefer that the windfall profits did society some good, though.
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dkofos Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jun-18-07 11:26 AM
Response to Original message
15. Just another excuse to keep the price of gas high.
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Up2Late Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-19-07 01:47 AM
Response to Original message
16. Kick, because this really pisses me off!
Edited on Tue Jun-19-07 02:05 AM by Up2Late
:kick: :kick: :kick: :kick:

edit: Oh, you want to really get pissed off? Listen to these reports on the U.S. Auto Industry from today!

Correct me if I'm wrong but, Isn't this the definition of a Conspiracy!?!)

U.S. Car Makers Warm to Parts of Energy Bill


Listen to this story... (at link above)
by David Welna

All Things Considered, June 18, 2007 · Detroit is not embracing
the fuel-economy standards proposed in the
Senate energy bill, but auto manufacturers are embracing
the mandate for more homegrown fuels, such as ethanol.

Because GM and Ford build cars in Brazil, where ethanol
powers half of the vehicle fleet, they already have
extensive experience and technology for using such fuels.

Shifting to alternatives would probably reduce U.S. oil
dependency, as Congress wants. But skeptics say the auto
manufacturers are embracing ethanol to avoid higher
mileage standards.

(more at link) <http://www.npr.org/templates/story/story.php?storyId=11164716>



Fuel Economy Proposal Meets Resistance in Detroit



Listen to this story...

All Things Considered, June 18, 2007 · Proposed legislation would raise
the requirement for Corporate Average Fuel Economy to 35 miles per gallon over 10 years.

Automakers recently have said it's impossible for them to meet
tougher fuel efficiency standards, but New York Times Detroit
Bureau Chief Micheline Maynard says carmakers in Japan and Europe
already have to meet higher standards.
Maynard talks with Michele Norris.

(audio at link) <http://www.npr.org/templates/story/story.php?storyId=11164719>
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Canuckistanian Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Jun-19-07 01:49 AM
Response to Original message
17. Oh-oh, competition. We'd better scale back.....
Edited on Tue Jun-19-07 01:52 AM by Canuckistanian
Since when has that been a sound business principle?

http://imgred.com/
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