US hit record oil production of 13.1M - Thanks Biden!

New refineries coming online outside the US.

Credit to @G8trGr8t for posting this in the "US Core inflation level lowest in 3 years" thread at post #101.

New Refineries Are Coming Online. Why They Could Lower Gas Prices.

 

$28 for diesel

wow. i missed that. If I was a refiner, i think i would be transitioning more to diesel, but i don't know how hard that would be. If/when more sour from Venezuela comes back on line, that margin may decrease.

higher nat gas prices in US due to more LNG to world market also drives up energy costs for the US refiners, a big advantage that they had on some other refiners. more refineries are planned/under construction in the ME that will also enjoy lower nat gas prices to help fuel their operations. Add'l units to come on line in Nigeria in 24. Still uncertain as to whether these will add to global supply and not just balance out closing of older refineries.


New refineries to overrun inefficient plants by 2024 | The Guardian Nigeria News - Nigeria and World News — Energy — The Guardian Nigeria News – Nigeria and World News

An increase in the number of new refining capacity, expected to extend till the end of 2024, signifies major competition ahead for the oil industry, with possible shutdowns, the International Energy Agency (IEA), said in its Oil 2019 Report.

The IEA noted specifically that such a capacity expansion will require shutdowns to balance, estimating that 4.3 million barrels daily (b/d) should theoretically be closed by 2024, so that the new additions do not exceed the products demand growth.

Nigeria seeks to restart four state oil refineries by end 2024 | Reuters

Crude Oil Refinery Projects Analysis and Forecast by Region, Key Countries, Project Type (New Build and Expansion), Development Stage, and Cost 2027 (globaldata.com)

Some of the key Crude oil refinery projects are Hambantota III, Siraf, Balochistan II, Yulong, Ras Al-Khair, and Khalifa among others. Siraf, operated by Siraf Refineries Infrastructure Co expected to commission operations by 2024 will have a production capacity of 480mbd.

 

Got you. The good policy is to deplete the SPR in order to artificially reduce prices and not be concerned about the consequences as we now have two major global conflicts.

Of course I am sure you agreed with the morons in congress playing politics with Covid instead of maxing filling the SRP when prices were crazy low? Because if trump supported it…it had it be bad.

 

Now we have two major global conflicts and the reserves are way low. We had the opportunity to actually make a no brainer decision and buy at historically low prices. But instead we decided to play politics with Covid.

 

What are you talking about? When, since 2022, have we had historically low oil prices?

 

Was it a clean bill or what was attached to it?

 

Crude oil futures were at lows in March and April of 2020...

historical oil prices - Google Search

 

Exactly. Instead we played politics when we had what should have been a bipartisan no brainer decision.

 

if it was a clean bill, it was a stupid move by the dems; neither party has the monopoly on stupid, majority of the infection, likely, but not the monopoly.

 

LOL, do you ever check ANYTHING? Current SPR is 351.27 million barrels. At the current rate we import oil, that quantity, combined with our domestic production, is enough to last 711.54 days.

Do I wish we had increased it when we could have done so? Sure. Are we in panic mode? Hardly.

 

Enjoy it while it lasts, give him his victory lap. Oil companies in the US pay a lot of taxes that otherwise would be on us. (may be a factor preventing him from putting a stop to it)

On the flipside, the crude export ban that was lifted in 2015 is starting to cost us at the pump. We exported petroleum before this ban was lifted, but at least it was refined here first.

Exporting crude to be refined elsewhere is a slippery slope that can take away our energy cost advantage.

 

Thanks for clarifying. Fortunately this whole debate will be moot in another decade or so as we phase out gas-powered cars for EV. I'm assuming we can all agree that will be a good thing, but that might be asking for too much.

 

You’re dodging the point about not filling the SPR when oil was at $20/bbl imagine the profit we would have made then!

 

Good luck with that pipe dream.
It will be 50 years or more before the world is off Oil if we are lucky.
The demand from the devolving world will increase offsetting the decreased demand from the 1st world.
I’ve posted the predictions here not long ago.