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For some refineries, price of gas too low

Omaha World Herald -- Rising gasoline prices have become a source of finger-pointing — yet the economic reality for some refineries is that the price isn't high enough.
They say that gasoline prices, particularly on the East Coast, have been too low for them to operate successfully. Already, two refineries there have shut down completely and a third has gone idle as prices for fuel haven't kept up with the surging cost of the raw material, crude oil.
"In an environment like this, where the price of crude oil is rising faster than the price of the product that the refineries make, the profits get squeezed and in some cases they're not profits at all," said Bill Day, a spokesman for San Antonio-based Valero, the nation's largest refiner.
High global oil prices and declining U.S. demand for gasoline ...

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Submitted Apr 02, 2012 By: BurntOrange

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bruin19MD Champion Author Maryland Posts:1,108 Points:174,890 Joined:Feb 2011	Message Posted: Apr 3, 2012 4:58:11 PM Ignore bruin19MD Report Abuse Maybe executives should cut their big bonuses
Agarre Champion Author Richmond Posts:1,335 Points:263,785 Joined:Feb 2012	Message Posted: Apr 3, 2012 4:09:33 PM Ignore Agarre Report Abuse low ?
rjhenn Champion Author Des Moines Posts:22,605 Points:2,256,100 Joined:Aug 2005	Message Posted: Apr 3, 2012 1:35:48 PM Ignore rjhenn Report Abuse So why are some pushing to build Keystone XL to send Canadian crude to the Gulf Coast, where they can export the refined products, or the crude itself? Wouldn't it make more sense for the US to build a pipeline, or extend existing pipelines, to carry Canadian crude to the East Coast?
md11capt Champion Author Denver Posts:3,558 Points:729,180 Joined:Mar 2011	Message Posted: Apr 3, 2012 1:12:50 PM Ignore md11capt Report Abuse Definitely profit margins.
w9med Champion Author Gary Posts:1,128 Points:329,945 Joined:Aug 2011	Message Posted: Apr 3, 2012 12:46:15 PM Ignore w9med Report Abuse You mean profit margins
sparky808 Champion Author Honolulu Posts:3,139 Points:624,685 Joined:Sep 2011	Message Posted: Apr 3, 2012 10:26:24 AM Ignore sparky808 Report Abuse THank you for posting.
remay Champion Author Houston Posts:7,078 Points:2,143,215 Joined:May 2006	Message Posted: Apr 3, 2012 5:42:03 AM Ignore remay Report Abuse Bail out time?
WalRus49 Champion Author Boston Posts:4,210 Points:895,590 Joined:Nov 2010	Message Posted: Apr 3, 2012 5:22:55 AM Ignore WalRus49 Report Abuse More organized mayhem and pillage.............
ramman2012 Champion Author Edmonton Posts:2,321 Points:497,370 Joined:May 2011	Message Posted: Apr 3, 2012 4:16:07 AM Ignore ramman2012 Report Abuse Ok
gravityhurts Champion Author North Carolina Posts:4,229 Points:964,230 Joined:Sep 2008	Message Posted: Apr 3, 2012 3:07:35 AM Ignore gravityhurts Report Abuse Disturbing.
SavingInNC Champion Author North Carolina Posts:5,924 Points:1,118,240 Joined:Oct 2006	Message Posted: Apr 3, 2012 2:38:57 AM Ignore SavingInNC Report Abuse Crazy
comprof Champion Author Houston Posts:7,004 Points:1,383,475 Joined:Jul 2009	Message Posted: Apr 3, 2012 1:16:31 AM Ignore comprof Report Abuse Businesses have to make profits to hire workers.
tomok Champion Author Portland Posts:33,579 Points:2,372,235 Joined:Aug 2006	Message Posted: Apr 3, 2012 12:09:30 AM Ignore tomok Report Abuse For some refineries, price of gas too low? Sounds like a Big Oil article to me! Highest gas prices at the pump ever and the refineries are complaining about their profits! Time for Chinese made fuel imported for the US while Big oil is selling fuel and natural gas on the world market for higher prices, there will be NO price reduction for the cost of fuel or natural gas IN the US. Barry will support natural gas and oil production for sale on the world market to pay for his ‘spending gone wild’ addiction. The US ‘oil and natural gas resources’ belong to the citizens of this country and are to be used by those same citizens! Speculators, manipulators and the banks continue to unfairly and unjustly make the driving public pay higher prices at the pump for their benefit. Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. Consider using other forms of less expensive transportation to lower your cost, if possible. The price of fuel at the pump is too high! 12/22/2012!
RCPattonJr Rookie Author Chicago Posts:11 Points:1,175 Joined:Apr 2012	Message Posted: Apr 2, 2012 10:52:22 PM Ignore RCPattonJr Report Abuse ok
NOTSOGRN Champion Author Michigan Posts:2,075 Points:1,535,020 Joined:Dec 2007	Message Posted: Apr 2, 2012 10:35:38 PM Ignore NOTSOGRN Report Abuse . . To those who said conserve this is exactly what I thought would happen what I don't burn some one else will...will it be a Chicon?
letterchunker Champion Author Texas Posts:2,335 Points:683,150 Joined:Aug 2008	Message Posted: Apr 2, 2012 9:28:51 PM Ignore letterchunker Report Abuse It's not whether you win or lose, but how you place the blame.
tedjm1 Champion Author New York Posts:5,609 Points:800,300 Joined:Dec 2006	Message Posted: Apr 2, 2012 9:18:10 PM Ignore tedjm1 Report Abuse But by how much are their profits being squeezed? Enough that their CEO may not get a 100 million dollar bonus?
bikechuck Champion Author Indianapolis Posts:7,148 Points:2,089,845 Joined:Apr 2006	Message Posted: Apr 2, 2012 9:17:53 PM Ignore bikechuck Report Abuse Wow, how much higher must it go before they have a profit?
BobD2009 Champion Author Long Island Posts:7,124 Points:1,266,510 Joined:Apr 2009	Message Posted: Apr 2, 2012 9:13:38 PM Ignore BobD2009 Report Abuse They are paying too much for crude.
nomad228 Champion Author Columbus Posts:3,143 Points:580,215 Joined:Feb 2011	Message Posted: Apr 2, 2012 9:12:36 PM Ignore nomad228 Report Abuse where's today's news at. : )
SparkieMi Champion Author Kalamazoo Posts:3,397 Points:615,110 Joined:Sep 2011	Message Posted: Apr 2, 2012 9:12:11 PM Ignore SparkieMi Report Abuse I agree with Batman302....
judgemobile Champion Author Ohio Posts:7,700 Points:2,471,660 Joined:Nov 2005	Message Posted: Apr 2, 2012 9:10:59 PM Ignore judgemobile Report Abuse if they have a price issue, it would be the CRUDE sellers ripping them off.
pastorpaulcg Champion Author Virginia Posts:3,615 Points:775,785 Joined:Dec 2010	Message Posted: Apr 2, 2012 9:10:17 PM Ignore pastorpaulcg Report Abuse More research needed before I believe this
crreed1 Champion Author West Virginia Posts:2,100 Points:2,550,715 Joined:May 2005	Message Posted: Apr 2, 2012 9:09:56 PM Ignore crreed1 Report Abuse that's BS
regout Champion Author Quebec Posts:3,090 Points:859,430 Joined:May 2010	Message Posted: Apr 2, 2012 9:09:23 PM Ignore regout Report Abuse Every products are indeed to low.
jimgraham Champion Author Akron Posts:10,508 Points:2,006,685 Joined:Oct 2007	Message Posted: Apr 2, 2012 9:09:10 PM Ignore jimgraham Report Abuse Tough to tear down a refinery and move it to a better market. But is being done. Wait until the spread between West Texas and Brent closes back up and they will be profitable again - or if they were to get a pipe from the Canadian tar sands stuff.
Batman302 Champion Author Wilmington Posts:11,726 Points:1,735,525 Joined:May 2008	Message Posted: Apr 2, 2012 9:08:01 PM Ignore Batman302 Report Abuse Big oil that owns the wells is making billions, but the guys who are just refining are stuck with the prices set by the market, same as the consumers. The problem is with the speculators that set the prices, even though they never touch the product.
ssect8 Champion Author Hartford Posts:8,126 Points:2,118,030 Joined:Jun 2006	Message Posted: Apr 2, 2012 9:07:19 PM Ignore ssect8 Report Abuse Some people are just out of their mind. They should move to Europe where gas is a lot more.
Blue_Cruzer Champion Author Lexington Posts:7,660 Points:1,697,285 Joined:Mar 2007	Message Posted: Apr 2, 2012 9:06:02 PM Ignore Blue_Cruzer Report Abuse Sounds like a con job.
heartbroken2010 Champion Author Ottawa Posts:4,480 Points:924,260 Joined:Aug 2010	Message Posted: Apr 2, 2012 9:05:32 PM Ignore heartbroken2010 Report Abuse Unbelievable .
jetskijerry Champion Author North Carolina Posts:4,036 Points:799,970 Joined:Mar 2011	Message Posted: Apr 2, 2012 9:04:58 PM Ignore jetskijerry Report Abuse My heart breaks for them...
joel27nc Champion Author Raleigh Posts:10,672 Points:1,885,095 Joined:Mar 2008	Message Posted: Apr 2, 2012 9:04:47 PM Ignore joel27nc Report Abuse This makes me so mad, gerrr
jrschl Champion Author Louisville Posts:3,102 Points:707,790 Joined:Jun 2011	Message Posted: Apr 2, 2012 9:03:27 PM Ignore jrschl Report Abuse Cut out the speculation. Then maybe everyone, except the speculators, can be happier.
AcadianCanadian Rookie Author Ontario Posts:1 Points:345 Joined:Oct 2011	Message Posted: Apr 2, 2012 9:03:04 PM Ignore AcadianCanadian Report Abuse My ex worked at the Montreal Est Shell refinery for over 35 years. Now that refinery is closed even though the company had made in the millions in profit in the year that Shell closed it. This was after spending over $250,000 in improvements to the refinery. I guess Shell, like the rest of the gas companies, are too greedy that even when a refinery is still making money for them that it still costs them money to keep it opened so with fewer refineries, more money for them. Of course with fewer refineries to make gasoline this causes a shortage that the companies can now exploit saying they don't have enough gas to meet the demand, therefore with demand overtaking availability in the market, the poor gas companies have no choice but to raise the gas prices and become even MORE rich then they already are. If Shell had sold stocks to their employees my ex and I would have been millionaires instead of being in debt. Think that the Government will help consumers?! Fat chance when they will rake in millions from the tax they charge to us for every liter. [Edited by: AcadianCanadian at 4/3/2012 12:04:26 AM EST]
mcmonsta Champion Author Honolulu Posts:3,342 Points:844,495 Joined:Sep 2009	Message Posted: Apr 2, 2012 8:59:44 PM Ignore mcmonsta Report Abuse so what is the the probllem when we can export but we are stuck with unprofitability or is it just poor management or $ sucking
bginsj Champion Author San Jose Posts:1,958 Points:1,259,635 Joined:May 2009	Message Posted: Apr 2, 2012 8:59:33 PM Ignore bginsj Report Abuse and yet big oil is making BILLIONS!!
BrucePen Champion Author Ontario Posts:6,732 Points:1,387,590 Joined:Sep 2008	Message Posted: Apr 2, 2012 8:57:33 PM Ignore BrucePen Report Abuse We are being ripped off big time
roadrunnin Champion Author Richmond Posts:1,801 Points:582,030 Joined:May 2008	Message Posted: Apr 2, 2012 8:56:49 PM Ignore roadrunnin Report Abuse REALLY seems like the problem is access, let them build the pipeline to the east coast instead of to the gulf coast.
SparkieMi Champion Author Kalamazoo Posts:3,397 Points:615,110 Joined:Sep 2011	Message Posted: Apr 2, 2012 8:56:20 PM Ignore SparkieMi Report Abuse I agree with rjoeh and olive2trvl.... Really, how much profit is enough?? Their Greed may lead to regulation and government controls that they are not going to like!!!!!
mitchell6597 Champion Author New Hampshire Posts:3,462 Points:728,360 Joined:Apr 2010	Message Posted: Apr 2, 2012 8:54:36 PM Ignore mitchell6597 Report Abuse Oh great.
Kamakani Champion Author Denver Posts:2,685 Points:1,294,660 Joined:Oct 2008	Message Posted: Apr 2, 2012 8:53:32 PM Ignore Kamakani Report Abuse No way is $4.79 too low.
w9med Champion Author Gary Posts:1,128 Points:329,945 Joined:Aug 2011	Message Posted: Apr 2, 2012 8:52:00 PM Ignore w9med Report Abuse I am sure they always think their profit margins are too low
kgbellman Champion Author Ann Arbor Posts:2,849 Points:758,565 Joined:Mar 2011	Message Posted: Apr 2, 2012 8:48:36 PM Ignore kgbellman Report Abuse great point, richnc
abcdMA Champion Author Worcester Posts:8,052 Points:1,600,730 Joined:Nov 2008	Message Posted: Apr 2, 2012 8:48:07 PM Ignore abcdMA Report Abuse price too low--the administration will love those words
mrbee Champion Author Little Rock Posts:3,893 Points:2,493,310 Joined:Oct 2005	Message Posted: Apr 2, 2012 8:47:12 PM Ignore mrbee Report Abuse Wow!
mstearno Champion Author Dayton Posts:8,174 Points:1,755,920 Joined:Jan 2008	Message Posted: Apr 2, 2012 8:46:26 PM Ignore mstearno Report Abuse morons
BCM1 Champion Author Pennsylvania Posts:1,879 Points:786,420 Joined:Jun 2007	Message Posted: Apr 2, 2012 8:46:16 PM Ignore BCM1 Report Abuse Refineries shutdown because of supply and demand versus cost to produce. By keeping them shut, they can keep the price high.
Holly123 Champion Author Charlotte Posts:3,332 Points:816,710 Joined:Dec 2010	Message Posted: Apr 2, 2012 8:42:29 PM Ignore Holly123 Report Abuse 100% agreed Monarch57!!!!!!!
richnc All-Star Author North Carolina Posts:579 Points:209,985 Joined:Mar 2006	Message Posted: Apr 2, 2012 8:42:26 PM Ignore richnc Report Abuse Sad thing is that our "leaders" should have taken a lesson during the oil embargo of the 70's. They should have realized that in a world wide oil market we have NO control over price nor supply. But both parties have failed us for over 30 years, and sadly we put up with them.
monarch57 Champion Author British Columbia Posts:1,656 Points:138,720 Joined:Nov 2008	Message Posted: Apr 2, 2012 8:41:24 PM Ignore monarch57 Report Abuse Quit gouging us, were all fedup with the greedy gas prices.