BP closing 2 refineries in US.

Just got some interesting news and thought I would share it here.
BP PLC is seeking buyers for its Texas City, Tex., refinery and the Carson, Calif., refinery near Los Angeles, as part of a strategy in which BP plans to reshape its downstream business, slashing its US refining capacity in half.
A friend in the industry informed me BP supplied 25% of the fuel sold in southern California and was a big supplier of jet fuel to LAX. Hope this does not give the oil industry another reason to raise prices.

 

"Reshaping its downstream business" sounds like code for downsizing investment in the U.S. market.

Great. All the global warming weenies will be ecstatic to hear this.

The U.S. could produce enough energy (oil) to eliminate dependence on foreign imports if we were allowed to drill; And not 5 miles off shore where platform rig malfunctions in deep water are damn near impossible to contain.

Think what you want, but I don't blame BP a bit. A "big brother" government creates an environment where regulation makes investing in business impossible. America is quickly becoming a country where profit and free enterprise is frowned upon.

Not really an economic philosophy that will finance the entitlement culture (and the tax base it requires) that represents the agenda of the current administration.

Sorry about the rant

It's what I believe...

Ok. If you disagree I'm ready ...

 

there go the gas prices yet again...

 

yes. down stream business equals refining. the refineries are not being closed, they are being sold. It's all in the earnings report. I read it in it's entirety. you can now unwad your panties.

 

The main reason from what little i have heard is they are no longer using or in the near future will not have access to "sweet crud" and are relying on "sour crude from the gulf, Venezuela, and the mid east. It is just not cost effective to update the refinery to handle the higher sulfur content. Out here in CA I am not shocked but Texas City is a surprise to say the least.
I will stay out of the politics on this one but thought it was interesting news and possibly sad news for my wallet!

 

Only problem is they have to find a buyer for a refinery designed for sweet crude. Its not the end of the world by any means but I thought it was interesting enough to share.

 

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Just making sure I'm following you here , it was Obama's fault for the oil spill and nothing to do with BP ?

 

Edit: Coylifut, I think I responded to a post not directed at me. I deleted it.

My bad...

 

Some how this turned into a

Sorry did not see that coming..

 

No, that's not at all what I am saying.

It's an opinion regarding the way we do business.

BP has their share of responsibility for the oil spill. But government regulation that forces oil companies to drill miles off shore makes a situation like the gulf oil spill completely unmanageable.

If that spill had happened close to shore, it would have been easily capped. That's more what my rant was about. And I happened to weigh in on the original post.

I want less government in my life, not more.

 

Not your fault, Bro.

I brought in the politics

 

Don't move here then , we get big government and we have to pay taxes.

 

Agreed...

Between the conflict with the Suez Canal and now this, gas prices will only go up at the moment.

 

I have a small business. We get the same down here. I pay taxes out my...

To be clear, I don't have a problem with efficient, effective government.

I DO have a major problem with special interest, government created bureaucracies.

I believe, somewhere along the line, our system of representative government has been hijacked by career politicians who are more concerned with advancing their agenda than representing their constituencies.

And the energy policy in the U.S. is just one reflection of that agenda.

 

I'm just taking minor issue with the reactionary tone that these threads take. the accepted way to historically analyze prices is the Hardship price which is gasoline indexed by Median Family Income. Folks in the 50s paid double the % of their income as folks do today for gas per gallon. the reason why we don't feel content is that our household expenditure for gas is double what it was in 1999. It's double what it was in our most recent memory. when gas goes to $6 per gallon and if our incomes don't grow, we'll be in line with what someone buying a new corvette paid in 65.

 

I take responsibility for the reactionary tone.

Redgrom posted information he found interesting. I brought the politics into it

Your "real dollar" comparisons put things in perspective regarding the refinery issue and how it relates to today's prices.

I guess I question where prices COULD be if we utilized our own resources.

That's why I have a problem with current U.S. energy policy. Great. Let's develop any source of alternative energy that shows promise. I can't believe I am saying this, but invest PUBLIC funds in research to advance those technologies.

But until then...drill. How about a transition period away from fossil fuel?

Let's control our own destiny...

 

I think you should just keep buying Canadian , but I digress , sorry OP

 

Ha

It's not Canadian oil purchases I am worried about. I have no problem with my money (even if it results in higher prices) going up north.

It's financing the Middle East that troubles me. And the fact that they have us by the b*lls if the sh!t hits the fan.

It's a big national security issue in my mind.

 

Good , we're OK with you guys paying down our national debt .