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Posted by Bob H [67.142.173.23] on Saturday, February 25, 2012 at 19:50:25 :
In Reply to: $4.29 a gallon for diesel. posted by junkyardog [72.71.216.82] on Saturday, February 25, 2012 at 18:18:45 :
I work in the oil industry we buy the oil at the market value set by OPEC and other countries. The people driving oil up are the speculators just looking for hot spots in the middle east and elsewere.
Obama raised the federal excise tax on oil by .40 cents a gallon,refuses to let us drill in the known areas of US. At present time I am working on a production platform being built in Korea and outfitted in Corpus Christi, TX. My company would have liked to built the entire platform in Corpus but the enviromentalist stopped us from reopening Mustang Island due to nesting birds.
The cost of the rig in Korea minus transportation will be 563 million dollars, cost of transportation to Texas 53 million dollars, cost of outfitting with generators, MCC buildings, drilling derick, cranes, living quarters etc will be in the neighborhood of 250 million dollars. total cost prior to first oil in Aug of 2014 is around 1.7 billion dollars each. The project names are Jack St Malo and Bigfoot Chevron.
Now, the transportation cost to Louisiana shore gathering station and on to refinerys oin Louisana and Texas is calculated with metering stations operated by pipeline owners Rowan, Mid Continent, etc is 10 to 15 dollars a barrel (a barrel of oil is 32 gallons not 55 gallons as some people think). The refinery's refine the oil into over 1000 different products least of which is gas and diesel.
The oil company's have been shutting down refinerys on the east coast Phillips in Bayway NJ, Washingston State, Texas due to outdated equipment that cannot be replaced due to enviromentilists and government that will not let them. the last major refinery built in the US is in Port Arthur, TX in 1977.
In sumation it is true that the oil companies are making money, but are spending it also to explore and produce it.
If people of the US would carpool and take the bus, train, ride a bike to work or just not drive one day a week consumption would be down by 25% a year. in addition reduce the speed limit back to 55 mph like it was during the 70s and 80s.
Bob
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