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Joined: Aug 2000
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Hard-core CEG\'er
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Increasing the price of crude oil because there are not enough refineries to turn it into gasoline is like increasing the price of wheat because there are not enough ovens to bake bred in.
It is completely illogical.
Brad "Diva": 2004 Mazda 6s 5-door, Volcanic Red
Rex: 1988 Mazda RX-7 Vert, Harbor Blue.
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Joined: Mar 2004
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Hard-core CEG\'er
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Hard-core CEG\'er
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Originally posted by Zoom Zoom Diva:
Increasing the price of crude oil because there are not enough refineries to turn it into gasoline is like increasing the price of wheat because there are not enough ovens to bake bred in.
It is completely illogical.
When there are not enough refineries to produce gasoline, it is usually because demand is increasing past the capacity of the current refineries.
What happens when your demand outstrips supply ? You end up with a shifting demand curve which increases the price.
When the cost of gasoline increases, oil which is used in it's production increases in value accordingly.
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Joined: Jun 2003
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CEG\'er
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CEG\'er
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It's unforunate when the supply is not allowed to keep up with demand. The refinery business is one of our vital links and it has barely expanded if at all since the 70's. There isn't a shortage of oil and there never was in the first place. There IS a shortage of refineries and that problem isn't being taken care of.
2000 Contour SE
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Joined: May 2002
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Hard-core CEG'er
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Hard-core CEG'er
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Gas is going up $0.17 per liter tonight in my town, bringing it up to $1.34 for tomorrow. 
1996 MM
Zetec, ATX
192000 kms...not dead, but I'm not fixing it
White people love Wayne Brady because he makes Bryant Gumbel look like Malcolm X.
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Joined: Jan 2001
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Hard-core CEG\'er
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Hard-core CEG\'er
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Originally posted by Bullet:
Gas is going up $0.17 per liter tonight in my town, bringing it up to $1.34 for tomorrow.
Why don't you put that in dollars for us...
$1.34 sounds like a REALLY GOOD DEAL!!!!
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Joined: Oct 2004
Posts: 423
CEG\'er
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CEG\'er
Joined: Oct 2004
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I just paid 1.30/l for premium. I can usually get about 1.2 weeks out of a tank though, but I am going to Vancouver tomorrow for Pearl Jam. [censored], I hope it goes down when I get back.
98 T-Red CSVT
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Joined: Apr 2003
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Hard-core CEG\'er
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Hard-core CEG\'er
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Originally posted by Woodencross:
Originally posted by Bullet:
Gas is going up $0.17 per liter tonight in my town, bringing it up to $1.34 for tomorrow.
Why don't you put that in dollars for us...
$1.34 sounds like a REALLY GOOD DEAL!!!!
posted a few pages ago
Originally posted by JB1:
Originally posted by Komet:
Here in Montreal, the gas price went up to 1.35$ can. a litre ! And that is for regular... 
thats $4.29/gal in u.s. dollars
math:
1.35 can=1.13512 u.s. currency converter
1 gal(u.s.)=3.78541 L (uconeer unit converter)
00 black/tan svt, #2052 of 2150, born 2/1/00
formerly known as my csvt
"Nothing in the world is more dangerous than a sincere ignorance and conscientious stupidity." -Martin Luther King, Jr.
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Joined: Aug 2000
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Hard-core CEG\'er
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Originally posted by ODC:
When the cost of gasoline increases, oil which is used in it's production increases in value accordingly.
Actually, that is the illogical part. The shortage is in the refining stage. This means there is a relative surplus of crude oil. The refinery should be seeking to purchase crude at lowest cost.
Since there is more crude oil than we can refine into gasoline, that should actually cause the value of crude oil to decrease, not increase.
Brad "Diva": 2004 Mazda 6s 5-door, Volcanic Red
Rex: 1988 Mazda RX-7 Vert, Harbor Blue.
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Veteran CEG\'er
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Veteran CEG\'er
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Originally posted by Majisto:
It's unforunate when the supply is not allowed to keep up with demand. The refinery business is one of our vital links and it has barely expanded if at all since the 70's. There isn't a shortage of oil and there never was in the first place. There IS a shortage of refineries and that problem isn't being taken care of.
Given the unprecedented & record breaking profits of the oil companies in the last few years, its hard to imagine why any oil company would WANT to build new refineries.
Accumulaing enormous profits without having to invest in infrastructure is a dream come true for any company.
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Hard-core CEG\'er
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Hard-core CEG\'er
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Originally posted by 96RedSE5Sp:
Originally posted by Majisto:
It's unforunate when the supply is not allowed to keep up with demand. The refinery business is one of our vital links and it has barely expanded if at all since the 70's. There isn't a shortage of oil and there never was in the first place. There IS a shortage of refineries and that problem isn't being taken care of.
Given the unprecedented & record breaking profits of the oil companies in the last few years, its hard to imagine why any oil company would WANT to build new refineries.
Accumulaing enormous profits without having to invest in infrastructure is a dream come true for any company.
The question is why isn't someone else coming in to steal a piece of the pie? That is what should be happening in this circumstance.
If government is preventing a new player from coming into the game, they should then require new refineries to be built.
Brad "Diva": 2004 Mazda 6s 5-door, Volcanic Red
Rex: 1988 Mazda RX-7 Vert, Harbor Blue.
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