206 comments on Why isn't the price of gasoline even higher?
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206 comments on Why isn't the price of gasoline even higher?
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Excuse me Gail if I missed your answer to research24 in which he asked your opinion about T Boone Pickens' proposal. Perhaps you missed it but yesterday on Nightly Business Report on PBS he gave some details. His idea is to use the windy corridor in the middle of the country to generate electricity and use natural gas as transport fuel. He would use electricity for transportation where possible and use LNG for auto and truck transport fuel by adding natural gas filling units to existing gas stations at a cost of about 400K per station(yikes!). He would use the grid to heat residences and run industry more.You of course will see lots of problems with adding all this capacity to a grid which is old and creaky and which couldn't absorb all the new input without a massive build out. Your post was very good and explained a lot about the refining business. I would be interested in seeing a list of the various refiners including what their capability is vis a vis coking and cracking equipment on site, output capacity etc. I have also read that some products like asphalt may become increasingly expensive because some of the newer refineries with the new coking units can squeeze more distillate out of their crude and don't have to sell off the residual asphalt cheaply.
You are right. I didn't see the details of T Boone Pickens' proposal. I think a major hold-up to Pickens proposal is that it would need a huge overhaul of the grid. I don't see that happening within 10 years, even if Congress appropriated money tomorrow, and started work on getting contractors to first design the upgraded grid, then actually get the parts and build it. By 10 years from now, US natural gas will be past peak, as will oil. It is hard to see anything major happening at that point.
I am afraid I don't have a list of who has what in terms of coking and cracking equipment on site. Perhaps one of the readers knows of such a list.
I know that asphalt and residual oil are already disappearing, as refineries with crackers and cokers refine them into higher-priced products. The oil companies see this is a way of getting maximum profit from the crude oil, but it is leading to a lot less asphalt.