[Plantagenet]

$this->bbcode_second_pass_quote('PrestonSturges', 'O')bama can claim credit for increases in production, while pointing out that increased production isn't going to fix the one thing consumers care about - cost

[kublikhan]

low oil price + high gasoline demand = nice margins for the refiners. This is not always the case. Sometimes refiner margins get squeezed and their profits fall. Obviously they want to make as much hay while they can because the good times will not last forever.

$this->bbcode_second_pass_quote('', 'A')UGUST 7, 2015 - Gross inputs to U.S. refineries exceeded 17 million barrels per day (b/d) in each of the past four weeks, a level not previously reached since EIA began publishing weekly data in 1990. The record high gross inputs reflect both higher refinery capacity and higher utilization rates.

Lower crude oil prices and strong demand for petroleum products, primarily gasoline, both in the United States and globally, have led to favorable margins that encourage refinery investment and high refinery runs. Refinery margins are currently supported by high gasoline crack spreads that reached a peak of 66 cents per gallon (gal) on July 8, a level not reached since September 2008. Much of the refinery output is reaching global markets, as net exports are 19% higher this year through May.

[kublikhan]

$this->bbcode_second_pass_quote('Tanada', 'T')hanks, that is just what I was searching for. So it appears that even with cheap diesel fuel the production rate is exceeding both exports and local consumption. That seems odd, why are the refineries working so hard when their is already an ample supply of both fuels? Perhaps they have empty fuel storage capacity but not much crude oil storage capacity, so by refining more now they are keeping their crude storage from hitting max?

[ROCKMAN]

Sorry but the US has never gotten close to "energy independence" on a Btu basis or any other basis. In addition to still importing a very large % of our oil consumption we're still a NET IMPORTER of NG (though by very little today) and a NET IMPORTER of LNG last time I pulled the stat.

[Tanada]

$this->bbcode_second_pass_quote('kublikhan', '')$this->bbcode_second_pass_quote('Tanada', 'T')hanks, that is just what I was searching for. So it appears that even with cheap diesel fuel the production rate is exceeding both exports and local consumption. That seems odd, why are the refineries working so hard when their is already an ample supply of both fuels? Perhaps they have empty fuel storage capacity but not much crude oil storage capacity, so by refining more now they are keeping their crude storage from hitting max?

[kublikhan]

$this->bbcode_second_pass_quote('Tanada', 'D')id you somehow miss the graph I posted a few messages ago? EIA says the USA has a big seasonal surplus of both Gasoline and Diesel fuels.

[kublikhan]

Looks like the party may be ending for gasoline. One of the few global bright spots in refined oil products joins diesel in oversupply. Demand is still up, but supply is up more. This was the scene from a few months ago:

$this->bbcode_second_pass_quote('', 'M')ar 3, 2016 - Cheap oil and strong car sales are driving demand growth for gasoline across Asia, threatening to open up the region's first shortage for the motor fuel in more than 15 years. That is expected to open an average annual deficit this year in Asia of 10,000 barrels per day (bpd) of gasoline that could widen to 90,000 barrels bpd by 2017. A tightening gasoline market would coincide with an expected late 2016 to early 2017 puncture of a global crude glut, lending support to a recovery in oil prices that are still down nearly 70 percent from mid-2014 levels.

FGE expects the gasoline supply gap to widen to 160,000 bpd in 2018. Consultancy JBC Energy sees a smaller shortfall of 107,000 bpd in 2018, up from 71,000 bpd next year. Although analysts expect China's car sales to slow in 2017 as the auto tax break expires, the increased sales from past years and strong sales in India are still expected to push up gasoline demand and profit margins for the fuel.

[ROCKMAN]

T - Not saying your impression is wrong but one needs to distinguish between an increase in stocks as due to a lack of sales or an increase due to an anticipated increase in demand. Given low prices and the summer driving season is coming up maybe the refineries are building above average stocks because the expect above average demand. Or not. We'll just have to see how it all shakes out by the end of the summer.

[AdamB]

$this->bbcode_second_pass_quote('ROCKMAN', 'S')orry but the US has never gotten close to "energy independence" on a Btu basis or any other basis.

[ROCKMAN]

Adam - Good poop...thanks. But now we have low oil prices/much less US drilling in the once booming trends where production is declining. And happening while consumption appear to be heading up even if slowly. That would seem to imply that when we see the net energy import chart in 5 years that tend may have reversed itself

[AdamB]

$this->bbcode_second_pass_quote('ROCKMAN', 'A')dam - Good poop...thanks. But now we have low oil prices/much less US drilling in the once booming trends where production is declining.