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PD Moderator	Message Posted: Mar 30, 2010 1:05:29 PM Ignore PD Report Abuse With refinery operations desperate to post acceptable profits again (they've been beat up the last year), temptation is showing as some refiners delay performing spring maintenance and schedule it for autumn months, when profit margins are expected to be weaker. It's a big gamble that has the potential to pay off for refiners, who would rather produce fuel now than during the fall months, when demand weakens. Today's crack spread, or the amount of money for turning oil into gasoline and distillate fuel is around $9-$12/barrel. The choice is to either do maintenance now, shutting down when margins are finally acceptable, or wait until autumn, when prices typically fall. The news of more refineries delaying their maintenance... Visit GasBuddy Blog for full article

Moderator

Message Posted: Mar 30, 2010 1:05:29 PM

Ignore PD Report Abuse

With refinery operations desperate to post acceptable profits again (they've been beat up the last year), temptation is showing as some refiners delay performing spring maintenance and schedule it for autumn months, when profit margins are expected to be weaker.

It's a big gamble that has the potential to pay off for refiners, who would rather produce fuel now than during the fall months, when demand weakens. Today's crack spread, or the amount of money for turning oil into gasoline and distillate fuel is around $9-$12/barrel. The choice is to either do maintenance now, shutting down when margins are finally acceptable, or wait until autumn, when prices typically fall.

The news of more refineries delaying their maintenance...

Visit GasBuddy Blog for full article

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Bonanza Champion Author Boston Posts:12,069 Points:2,548,080 Joined:Jun 2004	Message Posted: Apr 1, 2010 5:39:17 AM Ignore Bonanza Report Abuse Once again, most problems can be traced back to the government
Blue48 Champion Author Illinois Posts:7,295 Points:1,635,995 Joined:Feb 2007	Message Posted: Mar 31, 2010 11:22:27 PM Ignore Blue48 Report Abuse SOMEBODY ALWAYS WANTS TO STICK IT, TO THE HARD WORKING JOE!
POLELANE Champion Author Ohio Posts:7,148 Points:828,370 Joined:Mar 2008	Message Posted: Mar 31, 2010 9:57:40 PM Ignore POLELANE Report Abuse they win; we lose; or we'd trade jobs
gasokie Champion Author Oklahoma Posts:3,442 Points:1,323,805 Joined:May 2007	Message Posted: Mar 31, 2010 5:31:49 PM Ignore gasokie Report Abuse If you think about it, the refiner is never going to be in business to supply us with cheap product. They want (and have some duty to their stockholders) to make a respectable profit. They just aren't in business to make us happy and I'm not too sure that that ain't a good thing.
gasokie Champion Author Oklahoma Posts:3,442 Points:1,323,805 Joined:May 2007	Message Posted: Mar 31, 2010 5:22:13 PM Ignore gasokie Report Abuse Refiners get hurt by the yo yo of gas prices too. But thats the way a free market works.
Jarod13 Champion Author Virginia Posts:3,491 Points:1,409,055 Joined:Oct 2008	Message Posted: Mar 31, 2010 1:40:34 PM Ignore Jarod13 Report Abuse No look who is out to take the consumer out to the cleaners? Every time we turn around someone is trying to pick our pockets. Whether it be big government or big business, it's always the taxpayer/consumer that winds up with less in their pockets or spending more in order to pad the pockets of the politicians or CEO's. Enough is enough...
cpl11787 All-Star Author Minnesota Posts:630 Points:123,275 Joined:Jan 2010	Message Posted: Mar 31, 2010 1:32:39 PM Ignore cpl11787 Report Abuse ok then.
mreiff Champion Author Louisville Posts:5,335 Points:1,300,765 Joined:May 2009	Message Posted: Mar 31, 2010 12:34:02 PM Ignore mreiff Report Abuse These big businesses will always make the decision that brings them the most profit, not what is right for the consumer. [Edited by: mreiff at 3/31/2010 12:34:13 PM EST]
condé Champion Author Michigan Posts:3,726 Points:1,810,640 Joined:Oct 2004	Message Posted: Mar 31, 2010 12:20:08 PM Ignore condé Report Abuse Work it in... but not at my cost.....
indyjim Champion Author Indianapolis Posts:10,076 Points:2,316,505 Joined:Jul 2006	Message Posted: Mar 31, 2010 10:40:41 AM Ignore indyjim Report Abuse Pay me now or pay me later.............your choice.
Spetsnaz Champion Author Dayton Posts:1,879 Points:619,480 Joined:May 2006	Message Posted: Mar 31, 2010 9:18:40 AM Ignore Spetsnaz Report Abuse They will always have a profit. It is always about the $$$$.
cableman31 Champion Author New York Posts:8,818 Points:2,013,875 Joined:May 2004	Message Posted: Mar 31, 2010 8:55:53 AM Ignore cableman31 Report Abuse True it makes sense to shut down in the fall, but will the equiptment stand an additional 6 months use without maintenance.
SUV2009 Champion Author Orlando Posts:4,403 Points:1,140,290 Joined:Oct 2009	Message Posted: Mar 31, 2010 8:51:18 AM Ignore SUV2009 Report Abuse It makes since but why are they talking about it now. How many problem will putting off the maintenance cause.
tbgasmizer Champion Author Ontario Posts:6,053 Points:1,229,770 Joined:Oct 2009	Message Posted: Mar 31, 2010 8:46:30 AM Ignore tbgasmizer Report Abuse How much of this is the Truth.
armstrmb Champion Author Houston Posts:10,544 Points:2,087,205 Joined:Jun 2007	Message Posted: Mar 31, 2010 8:42:03 AM Ignore armstrmb Report Abuse First, there is the gas distribution system that wants an arm and a leg. Then there is the public "transit" system that has eliminated so many bus routes that there is a 12 mile distance between my house and the nearest bus stop (and a 4 mile hike from my job and the nearest bus stop). Add to that the fact that the transit system adds 2% to every sale in a city of 2.2 million. Either you are taken by the gasoline system or raked over the coals by the government.
Cuzilla Champion Author Indianapolis Posts:12,183 Points:2,346,495 Joined:Sep 2005	Message Posted: Mar 31, 2010 8:40:43 AM Ignore Cuzilla Report Abuse Yes children, crack-spread is not about you butt cheeks!
Goatroper Champion Author Dallas Posts:6,584 Points:1,291,435 Joined:Apr 2004	Message Posted: Mar 31, 2010 8:36:14 AM Ignore Goatroper Report Abuse I don't care how you cut it. We are still getting screwed.
RobW23 Rookie Author Syracuse Posts:34 Points:949,805 Joined:Nov 2009	Message Posted: Mar 31, 2010 8:34:08 AM Ignore RobW23 Report Abuse I'm guessing gas prices will rise...lol
nstrdnvstr Champion Author Twin Cities Posts:36,832 Points:3,982,010 Joined:May 2001	Message Posted: Mar 31, 2010 8:33:56 AM Ignore nstrdnvstr Report Abuse Autumn is not that far away, they should be able to figure out the best time for maintenance soon.
jeepman64 All-Star Author Indiana Posts:909 Points:847,660 Joined:Aug 2004	Message Posted: Mar 31, 2010 8:33:51 AM Ignore jeepman64 Report Abuse I agree with BartBuzz. You think they would have figured that out by now, given all the years they have been in the business.
BartBuzz Champion Author Atlanta Posts:8,870 Points:1,772,835 Joined:Aug 2006	Message Posted: Mar 31, 2010 8:30:51 AM Ignore BartBuzz Report Abuse The oil business has been a guessing game for several years now. The speculators are guessing we'll keep taking their screw job. Keep conserving.
Buffalo Joe Champion Author Alberta Posts:8,581 Points:2,505,950 Joined:Feb 2003	Message Posted: Mar 31, 2010 8:30:43 AM Ignore Buffalo Joe Report Abuse Are we to believe this??????????When I look at what they are buying out in respect to other companies. Is someone "DREAMING IN TECHNICOLOR" here?????
ssect8 Champion Author Hartford Posts:7,979 Points:2,093,595 Joined:Jun 2006	Message Posted: Mar 31, 2010 8:30:17 AM Ignore ssect8 Report Abuse Just pure greed.
dopster Champion Author Toledo Posts:7,257 Points:2,289,325 Joined:Aug 2004	Message Posted: Mar 31, 2010 8:29:58 AM Ignore dopster Report Abuse Is it a guessing game, or a manipulation game?
lkozark Champion Author Missouri Posts:5,120 Points:1,363,685 Joined:Jul 2007	Message Posted: Mar 31, 2010 8:28:54 AM Ignore lkozark Report Abuse I suspect this is pure speculation about how the speculators continue to speculate about speculation. Bottom line is the consumer will continue to get screwed.
reff5577 All-Star Author Illinois Posts:806 Points:1,032,640 Joined:May 2007	Message Posted: Mar 31, 2010 8:28:47 AM Ignore reff5577 Report Abuse WHATEVER HAPPENS, THE COST WILL BE PASTED ON TO ALL OF US!!!
Tnerbeel Champion Author Houston Posts:8,809 Points:1,745,910 Joined:Mar 2007	Message Posted: Mar 31, 2010 8:28:16 AM Ignore Tnerbeel Report Abuse Let's hope safety is not sacrificed
chankos Sophomore Author Hamilton Posts:211 Points:126,230 Joined:Apr 2009	Message Posted: Mar 31, 2010 8:27:45 AM Ignore chankos Report Abuse yup...they've really been beaten up...bad...what a laugh
Committed All-Star Author New Hampshire Posts:527 Points:1,138,420 Joined:Oct 2008	Message Posted: Mar 31, 2010 8:26:31 AM Ignore Committed Report Abuse This sounds like NASCAR drivers trying to decide when to make a pit stop. Waiting may work, but risk also increases.
gagal31525 All-Star Author Georgia Posts:561 Points:511,840 Joined:Feb 2008	Message Posted: Mar 31, 2010 8:26:22 AM Ignore gagal31525 Report Abuse They are no reason to produce more.... if they do the price could come down and they are to greedy.
RedRam2005 Champion Author San Antonio Posts:7,729 Points:1,496,790 Joined:Dec 2007	Message Posted: Mar 31, 2010 8:25:55 AM Ignore RedRam2005 Report Abuse Speculation about speculation
bababooey2 Champion Author Hartford Posts:6,337 Points:1,299,915 Joined:Sep 2009	Message Posted: Mar 31, 2010 8:25:46 AM Ignore bababooey2 Report Abuse Idiots
Frankoil Champion Author New Hampshire Posts:3,880 Points:776,865 Joined:Jan 2010	Message Posted: Mar 31, 2010 8:24:58 AM Ignore Frankoil Report Abuse $12 crack spread should surely be good enough for anyone to keep refining.
stadlgi Champion Author Akron Posts:2,206 Points:1,321,205 Joined:Jun 2004	Message Posted: Mar 31, 2010 8:24:55 AM Ignore stadlgi Report Abuse Here we go again. They took a beating last year? What about us?
DJRIO Champion Author Miami Posts:8,030 Points:1,422,660 Joined:Jan 2008	Message Posted: Mar 31, 2010 8:24:38 AM Ignore DJRIO Report Abuse that is something they have to do
saveongasNC Champion Author North Carolina Posts:4,407 Points:1,094,015 Joined:Aug 2008	Message Posted: Mar 31, 2010 8:22:51 AM Ignore saveongasNC Report Abuse Buy less pay less!!!
mooneagle Champion Author Oklahoma City Posts:9,843 Points:1,699,345 Joined:Jun 2008	Message Posted: Mar 31, 2010 8:22:47 AM Ignore mooneagle Report Abuse I not sure about that
w4kh Champion Author Tennessee Posts:11,655 Points:2,226,065 Joined:May 2004	Message Posted: Mar 31, 2010 8:22:04 AM Ignore w4kh Report Abuse As maintenance is delayed, the potential for problems increases, especially safety concerns. A one or two week shut-down now for scheduled maintenance versus a refinery fire that takes a plant off line for a month or two would be a whole lot more expensive, but heck, it is only employees who are in danger, not the fat cat executives bucking for a bonus...
CLM06 Champion Author Tampa Posts:6,882 Points:1,521,560 Joined:Sep 2006	Message Posted: Mar 31, 2010 8:21:43 AM Ignore CLM06 Report Abuse There has got to be a better way
SaltyDogMA Champion Author Massachusetts Posts:2,310 Points:768,315 Joined:May 2008	Message Posted: Mar 31, 2010 8:20:37 AM Ignore SaltyDogMA Report Abuse Refineries will produce to the volume they think they can sell. That called good business practice.
AnObserver Champion Author New Jersey Posts:8,344 Points:2,255,830 Joined:Sep 2005	Message Posted: Mar 31, 2010 8:20:24 AM Ignore AnObserver Report Abuse This is nothing new - these decisions must eb made every year
jony Champion Author Florida Posts:7,311 Points:1,630,390 Joined:May 2006	Message Posted: Mar 31, 2010 8:18:51 AM Ignore jony Report Abuse either way or time will casues a spike in prices
I10Express Champion Author San Antonio Posts:8,654 Points:1,637,045 Joined:Nov 2008	Message Posted: Mar 31, 2010 8:18:33 AM Ignore I10Express Report Abuse I didn't know acceptable and obscene meant the same thing.
tazdriver Champion Author Huntsville Posts:4,913 Points:1,907,995 Joined:Jan 2007	Message Posted: Mar 31, 2010 8:17:27 AM Ignore tazdriver Report Abuse Maintenance is critical, future repairs will cost more
DieselKat Champion Author Tennessee Posts:2,733 Points:2,175,865 Joined:Oct 2005	Message Posted: Mar 31, 2010 8:16:08 AM Ignore DieselKat Report Abuse Interesting, we will see how this effects price.
vandad03 Sophomore Author Syracuse Posts:131 Points:950,900 Joined:Apr 2007	Message Posted: Mar 31, 2010 8:15:45 AM Ignore vandad03 Report Abuse Just wait until the first refinery has a maintenance related problem this summer during peak demand. Gas prices will shoot up and they will really rake it in.
abuck Champion Author Pittsburgh Posts:8,569 Points:1,526,000 Joined:Jul 2008	Message Posted: Mar 31, 2010 8:15:19 AM Ignore abuck Report Abuse or, delay maintenance, run into problems, shut down during the summer and jack prices up and show a profit
JimL1 Champion Author Phoenix Posts:8,207 Points:1,240,320 Joined:Jul 2003	Message Posted: Mar 31, 2010 8:14:11 AM Ignore JimL1 Report Abuse You know what you can do with these speculator driven articles.
netman044 Champion Author Texas Posts:6,848 Points:1,287,525 Joined:Sep 2005	Message Posted: Mar 31, 2010 8:14:04 AM Ignore netman044 Report Abuse They should have been able to do some maintenance and renovation while they were running at reduced capacity. They could end up in a worse mess and we could end up with higher prices if delayed maintenance caused a large refinery explosion or fire that took a refinery off-line during peak demand.
torch347 Champion Author Indianapolis Posts:1,065 Points:1,030,525 Joined:Jul 2007	Message Posted: Mar 31, 2010 8:13:14 AM Ignore torch347 Report Abuse When a thief wants to steal your money, it takes time to think up a good way to do it. So give it some time and they will figure out how to do it.