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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: sammaster who wrote (100619)	5/9/2008 4:07:44 AM
From: Elroy Jetson	Respond to of 206085

A "shortage of refineries" is the wrong way to think about things. It's like Mao Tse-Dong who wanted each village in China to have their own iron smelter. It's a politician's idea of a solution to a problem they don't have the competence to be involved in. There was limited free refinery capacity for a few years. Now, after many refinery expansions and upgrades, there is more refinery capacity than is currently required - as evidenced by the abysmal refining margins. .

To: sammaster who wrote (100619)	5/9/2008 4:26:14 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 206085

The diesel / jet fuel / fuel oil fraction is in tighter supply than gasoline. Europe and some other markets have less use for gasoline, which tends to get dumped in the US for what ever price it can fetch. This trade is small but enough to affect prices significantly. Ultra-low-sulfur refining requirements have added as much as 5 to 25 cents per gallon at retail to the price of road diesel. This is a small piece of the price difference dictated primarily by supply factors. .