Aldeer.com Forums Alabama Deer Talk Aldeer General Forum $7 diesel or 7% mortgages?

How about California shutting theirs down. I assume because of war lol

Especially when bird and or struggling with a stainless solo stove one may have cooled on oil and it’s a pain to get clean. Normal cooking is fine but walking away and weed eating is not recommended. Finally getting somewhere with it and lesson learned.

I’m lost

Carter is doing his usual thing of distracting from reality. He likes doing that.

The crack diesel spread is now at over $215 a barrel for finished deliverable diesel. That comes out to about a 10-30 cent per gallon increase by Monday depending on where you are at.

It's not an oil problem, it is a refining problem. WTI is down another $2.55 today. Oil has been at or around $100 barrel for extended periods of time again and again over the past 20 yrs. In 2008, it hit the all time high of $147/barrel. It stayed between $90 an $120 a barrel for most all of 2012 thru 2014. The problem today is a lack of refining capacity. Unfortunately, that problem is completely unsolvable in the short-term.

The problem we see today was caused by the 20 years of pushing this renewable/green energy BS here in the US and in Europe (wind, solar, hydrogen, ethanol, bio-mass and bio-gas, etc.) and more recently no fossil fuels mandates by 2030 and 2035. Instead of Big Oil investing in state of the art, higher capacity and more efficient refineries over the past 25 years, as the existing refineries continued to age out, nobody was willing to fight the regulatory battles and spend the billions in capital to attempt to build new ones. Why? Because our govt was telling them that fossil fuels were going to be regulated into oblivion and red-taping everyone to death. Nobody was willing to risk billions in capital, when that was the everyday drumbeat coming from Washington. There has not been a new greenfield refinery built in the United States since 1976. Now we are here and we are not going to build one in a few weeks. It's a five year process to build one from scratch, and that's only once you manage to get through all the governmental red tape.

Average diesel price today in China when converted to US dollars is $4.4982, and that is with all the global turmoil and oil issues in Russia and the middle east. Why, because they have the refining capacity. Enough to greatly influence world prices.

"China has the world's largest oil refining system, with a massive capacity of roughly 18.5 to 18.8 million barrels per day (mb/d), giving it formidable capability to produce diesel, gasoline, and jet fuel. Geopolitical Leverage: Massive spare and active capacity allows Beijing to modulate fuel exports and impact global diesel pricing."

Yeah, China would never do anything to attempt to influence elections or harm the US economy.

Stop it!!!

Sorry Marsh, but I had to edit my last post to provide "the rest of the story". Couldn't help myself and just had to add the end game, causation, exclamation point as further proof that oil prices are not the cause of the problem.

What happens when you have massive excess refining capacity and the ability to export as much as you desire? If diesel refining capacity is going off-line around the world, but you're China and still getting your needed oil from alternate sources, and you have a massive national stockpile to pull from, do you hold your cards tight and let the price climb ultra high before you start selling off your excess capacity. Do you think you'd tell your terrorist buddies to keep the disruption ramped up to the max? What if your biggest economic and geo-political foe has a huge election coming up in less than 60 days and the leaders, who are a thorn in your side, stand to lose that election because their constituents are a bunch of petulant children that dont understand the big picture. Yeah, I'd hold off on trying to help the rest of the world too.

There is a new refinery that broke ground earlier this year in Brownsville, TX.

It's expected to be fully operational sometime in 2029.

I think I saw where it's going to provide about 165K/bpd of throughput.

China also does biodiesel in the parts of their country where it makes sense. All those restaurants in their big cities generate a lot of dirty cooking oil and they recycle every bit of it.

Kill petro to bring change

California shutting down half their refineries hasn’t helped with demand but it meets their objectives

It's still relatively small. Most large scale, large company owned refineries have between 300K and 600K/bpd of throughput capacity. Every little bit helps though and it's good for the US and Tx

Brownsville project was also not a greenfield project. According to AI, it had been in the works and tied up in court, with construction halted, for over 10 yrs. Lets see, that would have put it being halted by the infamous Barack Obama administration. Hmmm. As the Guv would say.

AI Overview Yes, the Trump administration actively streamlined regulatory processes and policy measures to fast-track the proposed $300 billion oil refinery project at the Port of Brownsville in Texas. When President Donald Trump officially announced the project—led by America First Refining in partnership with India’s Reliance Industries—he directly credited his administration’s "streamlining of permitting and tax policies" as the primary catalyst that made the massive investment possible.

Key Details of the Fast-Tracking Efforts: Permit Streamlining: The administration focused heavily on reducing "red tape" by accelerating approvals required by federal agencies like the Environmental Protection Agency (EPA) to revive the project. The development site had previously languished for nearly a decade under different names due to repeated permitting hurdles and legal challenges from environmental groups

The first one is the hardest. Maybe this one will grease the skids for more.

I’m hoping with the Venezuela deal, we’ll see multiple Big Oil huge new refinery projects taking off acrosss the US in the next few years.

This should have been built 15 years ago. 2029 is a lifetime away under our current energy strain