The price of gas

When it is profitable enough then more refining capacity will be built. On
the production side, the market is telling you that it is not very
attractive to drill at recent prices.

Mike
MU-2

"Peter Gottlieb" wrote in message
et...
Wasn't there an article in the WSJ a week or two ago where some oil
company
execs said the regs weren't the primary issue?

I didn't look into it further. What's the problem? Failure of the
marketplace to place sufficient refining capacity on line? The price of
bringing more well capacity online is too high or unpalatable to the
public?
What? Or is it working the way it's supposed to and there are just a
bunch
of people annoyed at higher prices?

Are you an expert in the field (no pun intended) or just going with a gut
feeling? Just curious, because while I would gladly discuss with someone
with significant industry knowledge I really don't have any time to debate
environmental politics or with someone who bases their knowledge on one
party's propaganda (either one). No offense but it's late.


"Tom Sixkiller" wrote in message
...

"Peter Gottlieb" wrote in message
et...
This doesn't sound right. Are you saying the "EPA and others,"
meaning
government regulation, reduced the oil well reserves?

Reserves (from the time) and known resources are much higher than what
we're
extracting.

When it is profitable enough then more refining capacity will be built.
On
the production side, the market is telling you that it is not very
attractive to drill at recent prices.

I was under the impression that restrictive EPA regulations had essentially
halted new refinery construction?
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

"Jay Honeck" writes:

When it is profitable enough then more refining capacity will be built.
On
the production side, the market is telling you that it is not very
attractive to drill at recent prices.

I was under the impression that restrictive EPA regulations had essentially
halted new refinery construction?

Caveat: I know as much about the refinery business as Jay ;-)

EPA regulations don't "halt new refinery construction." Their
safeguards no doubt make it more expensive. My guess is the same as
an earlier poster: until the price of gasoline rises enough to pay for
the extra costs, new refineries won't be built. It's pretty simple.
Awww, now we can't fly our toys for cheap.

Don't like it? Write your representatives and vote. Or move to any
3rd world country where the same multi-national corporations regularly
destroy the surrounding environment and have periodic disasters with
their equipment, killing people and causing further damage. It's not
that they're particularly evil or even greedy, they're just doing
business according to the local rules. Ours are tougher.

Bob Fry wrote:

Awww, now we can't fly our toys for cheap.

So now gas is 27% of the cost of ownership instead of 25%?


All the best,


David

"Bob Fry" wrote in message
...
"Jay Honeck" writes:

When it is profitable enough then more refining capacity will be
built.
On
the production side, the market is telling you that it is not very
attractive to drill at recent prices.

I was under the impression that restrictive EPA regulations had
essentially
halted new refinery construction?

Caveat: I know as much about the refinery business as Jay ;-)

EPA regulations don't "halt new refinery construction." Their
safeguards no doubt make it more expensive.

The cost of the initial PAPERWORK runs into $$$BBBBILLIONS, much less the
actual construction.

"Tom Sixkiller" writes:

The cost of the initial PAPERWORK runs into $$$BBBBILLIONS, much less the
actual construction.

Wow! Imagine all the paper! Why, I'll bet it reaches from here to my
front door!

Imagine, Tom, if you could post something other than myths from talk
radio...

new refineries won't be built.

We can and do import gasoline already refined. That way we export the
mess elsewhere.

all the best -- Dan Ford
email: (put Cubdriver in subject line)

The Warbird's Forum www.warbirdforum.com
The Piper Cub Forum www.pipercubforum.com
Viva Bush! blog www.vivabush.org

"Cub Driver" wrote in message
...

new refineries won't be built.

We can and do import gasoline already refined. That way we export the
mess elsewhere.

From where? Pipeline maybe (Canada or Mexico?), but surely not by sea going
tanker. (If they are, I'm moving further inland).

"Jay Honeck" wrote in message
news:Ra1sc.10707$af3.571010@attbi_s51...
When it is profitable enough then more refining capacity will be built.
On
the production side, the market is telling you that it is not very
attractive to drill at recent prices.

I was under the impression that restrictive EPA regulations had
essentially
halted new refinery construction?

And any NEW drilling.

Tom Sixkiller wrote:

"Jay Honeck" wrote in message
news:Ra1sc.10707$af3.571010@attbi_s51...
When it is profitable enough then more refining capacity will be built.
On
the production side, the market is telling you that it is not very
attractive to drill at recent prices.

I was under the impression that restrictive EPA regulations had
essentially
halted new refinery construction?

And any NEW drilling.

And any existing well that ceases to produce has to be permanently capped. When OPEC
drops the price down, an expensive well must either run at a loss or close
permanently.

George Patterson
I childproofed my house, but they *still* get in.