Delta buys a refinery

[nittany03]

http://www.google.com/hostednews/ap...IR-ofg?docId=092ff2d8d0a3409abc78e8b81a5a544b

Interesting way to (attempt to) control fuel costs. Beats charging an arm and a leg for baggage.

 

[Sapper!]

Refining capacity is the only true link to gas prices at the pump. There is no relation to the price per barrel. No one has built a refinery in ages because of the extreme cost associated with new construction of a refinery. Interesting to see a company that not only understands that but is acting on that reality.

 

[SynixMan]

How long until they're drilling for oil?

 

[Fog]

Vertical integration is an interesting development in the airline industry. Hope it works. They have a chance unless 4 yrs from now we have a glut in the oil industry - possible, but not foreseeable at the moment.

 

[MasterBates]

When I asked if the airlines were hiring.. This is not what I had in mind

<-- Currently working for a large oil company that's not Delta.

 

[scoolbubba]

Remember the last time gas was 4 dollars a gallon, and people were screaming drill baby drill and build baby build when it came to oil wells and refineries? And how they said it would take 4-5 years to even see any price relief from any of the options...whaddayaknow, it's 4-5 years later. No new refineries. No new wells. Same high prices.

We are a nation full of retards who get precisely the government we deserve.

 

[MasterBates]

Yep. We had opportunities to get more oil in (Keystone XL), from a freindly neighbor (Canada), which would have thousands of good paying ($25/hr plus) jobs in the construction, operation and maintenance of the line, but our elected officials killed it.

Instead, we try to get what we can in through a patchwork maze of small pipes, some of which are pre WWII construction.

People don't have the attention spans to be good citizens most of the time. Residents yes, Citizen no.

 

[Flash]

Remember the last time gas was 4 dollars a gallon, and people were screaming drill baby drill and build baby build when it came to oil wells and refineries? And how they said it would take 4-5 years to even see any price relief from any of the options...whaddayaknow, it's 4-5 years later. No new refineries. No new wells. Same high prices.

We are a nation full of retards who get precisely the government we deserve.

Plenty of new wells from what I know since then, US oil production has actually increased recently. I think people tend to forget a few important things, oil is a commodity that is traded on the open market and 'we' have very little control over its price. Want to blame someone for the rise in oil prices? Blame the 100 million or so new car owners in China. They ain't the only ones, more folks are consuming and production isn't rising fast enough to meet the demand. And it isn't like the US can just drill it's way out of it either, we are already one of the top three oil producers in the world. The other two have vastly more in the ground but what we lack in easily accessible oil we make up for in technology.

 

[MasterBates]

Refining and transport are the two biggest things in the price of fuel we CAN contol domestically, but WE DON'T.

There has not been a large refinery built in 30 years.
The number of refinerys that have closed in that time is a lot (have numbers at work, in hotel in Paris)
Our transport infrastructure is a mess, both rail, barge and pipe. Trucks are only viable for short range (less than 100 mile) transport.

 

[scoolbubba]

Refining and transport are the two biggest things in the price of fuel we CAN contol domestically, but WE DON'T.

There has not been a large refinery built in 30 years.
The number of refinerys that have closed in that time is a lot (have numbers at work, in hotel in Paris)
Our transport infrastructure is a mess, both rail, barge and pipe. Trucks are only viable for short range (less than 100 mile) transport.

Bingo. You can have all the wells in the world. If you can't refine it close to where you want to use it, you're adding more unnecessary costs to an already expensive product.

 

[Jim123]

I hope Delta doesn't decide that there is better money in refining oil than running an airline

 

[jmcquate]

The big money is in Government funded algie.........clean your pools and count the cash.

 

[Sapper!]

Plenty of new wells from what I know since then, US oil production has actually increased recently. I think people tend to forget a few important things, oil is a commodity that is traded on the open market and 'we' have very little control over its price. Want to blame someone for the rise in oil prices? Blame the 100 million or so new car owners in China. They ain't the only ones, more folks are consuming and production isn't rising fast enough to meet the demand. And it isn't like the US can just drill it's way out of it either, we are already one of the top three oil producers in the world. The other two have vastly more in the ground but what we lack in easily accessible oil we make up for in technology.

Over the last year we have seen a decline in oil and gasoline consumed world wide. You might assume that there are lots of new wells out there and yes there are a few over the last 9 months or so, but the companies on the shelf aren't doing much drilling and lots deepwater guys packed up and moved out a good while back. Yes commodities trading/futures trading really does set the price for a barrel of oil but there hasn't been a single EMPTY pipeline up to a refinery down here in south Louisiana in 30 years, so while we can argue that more oil is needed or that demand isn't being kept up, the truth is there is plenty of oil to be refined we just have the same capability we did 20 years ago. Refine more, and yes drill more because oil is down here and companies most defintely are not opening up new well heads with any regularity near what was happening pre oil spill, defacto ban BHO style. Want to see one dollar gas, then double refining capacity and assure the oil companies that cap and trade won't happen.

 

[statesman]

http://www.google.com/hostednews/ap...IR-ofg?docId=092ff2d8d0a3409abc78e8b81a5a544b

Interesting way to (attempt to) control fuel costs. Beats charging an arm and a leg for baggage.

It's a bold strategy Cotton... let's see if it works out for them...

 

[statesman]

Over the last year we have seen a decline in oil and gasoline consumed world wide. You might assume that there are lots of new wells out there and yes there are a few over the last 9 months or so, but the companies on the shelf aren't doing much drilling and lots deepwater guys packed up and moved out a good while back. Yes commodities trading/futures trading really does set the price for a barrel of oil but there hasn't been a single EMPTY pipeline up to a refinery down here in south Louisiana in 30 years, so while we can argue that more oil is needed or that demand isn't being kept up, the truth is there is plenty of oil to be refined we just have the same capability we did 20 years ago. Refine more, and yes drill more because oil is down here and companies most defintely are not opening up new well heads with any regularity near what was happening pre oil spill, defacto ban BHO style. Want to see one dollar gas, then double refining capacity and assure the oil companies that cap and trade won't happen.

If it were only so simple. There is no money to be made in refining. The margins razor thin. There is no incentive for the industry to invest in refining capacity. There is a reason we don't build refineries in the country... just as we don't build nuke power plants... its FUCKING expensive and the return is near 0.