How long before the oil companies shut down a refinery?

[kentuck]

As payback for Obama vetoing the Keystone XL pipeline?

Can the shutdown of one refinery affect the price of oil and gasoline?

I recall that ENRON pulled a trick like that out in California, once upon a time.

[peacebird]

1. Enron did indeed....

[Bluenorthwest]

8. Enron did bad crimes, but they owned no refinery and shut none down. There scheme was market

manipulation oriented, all about electricity. Also what they did was for profit, not 'pay back'. So in fact they did not shut a refinery down to get payback. What they did do was far worse, really.

[Scuba]

2. I remember seeing one refinery fire in California blamed for a same-day price increase in Wisconsin.

When your side owns the major media, you can make your own truths.

[Lucky Luciano]

3. Shutting down a refinery reduces the price of oil, but increases the price of gasoline.

Remember that refineries are one of the key demand points for oil - less demand means lower price for oil...and one less refinery means a lower supply of gasoline and thus a higher price.

The difference between the price for a barrel of gasoline and a barrel of oil is called the crack spread. The crack spread widens a lot when a key refinery is shut.

[kentuck]

5. Interesting point.

I had not made that differentiation.

[louis-t]

13. Heh, heh, he said 'crack spread'.

[Lucky Luciano]

14. I was being overtly sexist of course!

[kelliekat44]

4. Not long, but screw them...it will be their money they are not making. Too bad Chavez

won't be around to pick up the slack.

[hobbit709]

6. Gas prices around here jumped 20 cents a gallon in the last few days.

[leveymg]

7. The 1979 "gas shortage" was mostly due to refinery shutdowns and wholesalers holding onto supplies

In the media-induced buyers panic that surrounded the Iranian revolution, there was a perverse incentive to withhold refined product as the retail price spiraled upward. Nothing pisses off voters more than shortages and rapid price inflation. Reagan won the 1980 election.

[Sunlei]

9. we need more refineries close to drill sites.

[elehhhhna]

10. Nope. Refineries ar blowin and going.

Their feedstock is super cheap right now. Lots of money being made.

Tar sand oil is worthless unless oils at 100/bbl. The whole play is uneconomic, as is the arctic

[JackInGreen]

11. Can't be soon enoigh

Let em. We need to transition. They want to take their ball and go home, fine. We should be playing with one that doesn't have the fate of humanity inside it.

[Holly_Hobby]

12. My husband worked at refineries for many years...

they shut down for 3 months every year for maintenance. I'm sure that figures into gas prices.