Biden’s Gas Prices Continue Going Up, Refinery Capability Comes Into Play

In case the news missed it, this was intentional, as the climate cult and extreme-enviros wanted to get rid of refineries. It doesn’t matter if you drill baby drill if you can’t do anything with it

Gas prices surge again to record high but the driver is refineries, not oil prices

Another week, another record high for gas prices. And there seems to be no immediate relief in sight.

The average price for regular unleaded gas surged by a quarter in the past week to a record $4.86 on Monday, AAA said. That’s up 59 cents more than a month ago, and $1.81 more than a year ago.

“After a blistering week of gas prices jumping in nearly every town, city, state and area possible, more bad news is on the horizon,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “It now appears not if, but when, we’ll hit that psychologically critical $5 national average.”

Many states are already above $5 per gallon. The top 10 states with the most expensive gas are: California ($6.34), Nevada ($5.49), Hawaii ($5.47), Oregon ($5.41), Washington ($5.40), Illinois ($5.40), Alaska ($5.37), Washington, D.C. ($5.06) and Michigan ($5.05).

Most people blame higher oil prices, but the real driver of higher prices may surprise you. It’s lack of refining capacity.

About half the price of gas is from the cost of a barrel of oil. But

What consumers see quoted as the price of oil is what the refineries pay for oil. Refineries then transform that oil into products and sell those. Refiners’ prices on those fuels are closer to what consumers pay. And those prices are closer to $250 to $280 per barrel, Daniel Milan, managing partner at Cornerstone Financial Services, said.

And that’s where it breaks down, because refinery capability is way down

When COVID-19 struck and world economies closed, demand plunged for oil and gas so many companies closed their plants. Others were hit by bad weather. Some companies stopped investing in refineries because of uncertainty over how the transition to green energy would affect their business. When Russia invaded Ukraine, more refineries in Russia were taken offline.

Add into that the notion that the greenie weenies have been killing off refineries, and refusing to allow newer, more efficient, and cleaner (relatively speaking) refineries to be built. The ones that are left are pretty much at full production. Even if we doubled domestic production it wouldn’t change all that much. All you greenie weenies complaining should realize this is what you’ve been voting for.

The post Biden’s Gas Prices Continue Going Up, Refinery Capability Comes Into Play appeared first on Pirate’s Cove.