What factors contribute to gas prices? [OC]Submitted by USAFacts_Official t3_yl8yag in dataisbeautiful
starrdev5 t1_iv14amn wrote
Reply to comment by 40for60 in What factors contribute to gas prices? [OC] by USAFacts_Official
That means ones that are open are at 94% utilization practically max refining capacity. That’s a sign of a refinery capacity shortage.
40for60 t1_iv15czv wrote
yes, one of the issues is the large refinery in Philly that blew up and they aren't going to rebuild it because the forecast is for consumption to decline. EV's are nearly 20% of new car sales in CA now The reason why gas prices went up so fast was due to the vaccine deployment going so smooth which made a sudden demand surge and outpaced the ability for the refinery's to ramp up, also North Dakota was slow to pump oil due to a really cold Jan/Feb then labor shortages.
starrdev5 t1_iv17552 wrote
You’re not wrong about your other points but specifically total refining capacity is operating at 1 million barrels of oil a day less than pre-covid.
Here is a list of refineries that shut down since Covid. Some of the shutdowns will cite things other than Covid that did them in like hurricane repairs and equipment maintenance costs, but refineries took big losses in 2020. It’s because of those big operating losses that their balance sheet couldn’t withstand the later operating losses.
40for60 t1_iv18tz6 wrote
Qty is down but not because systems are idle as the first person I responded to insinuated but because Philly is gone and the rebuild of Husky,due in 2023, and others isn't complete.
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