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The Chip Board Archive 11

Re: Quite right Gene - the only ones in use are th

Reading the thread I wish I could explain but unfortunately it is WAY more complicated than I could begin to explain here. Much of the overseas crude is a sour crude (containing sulfur) that is much cheaper that a lot of the domestic crude. So buying solely domestic would INCREASE prices. David said. "Where the crude is of sufficient quality to make kerosene (aircraft fuel) which trades at a premium." That is not exactly true, it is mainly the sulfur content, but other components do come in to play. A single crude is seldom ever run, but rather a blend of crudes so all the tower cuts will utilized. Most large oil companies are able to chase the market somewhat. As fast as diesel, Kerosene, Jet, Gasoline are somewhat interchangeable by molecular alterations i.e. reformers and catalytic cracking units. They add or liberate hydrogen making the product heavier or lighter, the difference between gasoline and jet. BTW gasoline is a by-product from most processes. In the free market when premium gasoline goes up 5¢ the refinery shifts from heaver cuts and maximizes light ends or does the reverse as prices fall. Also the cost spread of (molecular) cracking comes into play as well; the Texas sweet (crude) crack spread is a standard gauge. Also where the crude comes from is deceptive, oil companies buy and sell crude to make a profit just like stock. Sometimes we buy Middle Eastern crude and swap it with someone who has Venezuelan crude to lower shipping costs. If America refused to buy one countries crude it would just put pressure on other markets and someone else would buy from the country we refused to buy from. Unless consumption drops, crude sales won't change. Even this explanation is over simplified. Plus most products are pre-sold in the commodities market too, that complicates the don't buy on May 19th scheme. Hope this sheds SOME light on the subject.

Boycotting any single company or the industry as a whole for a short duration will not even be seen by them dure to the shere volumes.

Messages In This Thread

Don't Buy Gas on May 19
Re: Don't Buy Gas on May 19
Basic economics lesson grin
Re: Wishful Thinking ....
Re: Don't Buy Gas on May 19
Re: Don't Buy Gas on May 19
Re: Don't Buy Gas on May 19
Re: Don't Buy Gas on May 19
Re: Don't Buy Gas on May 19
And the problem is it is only cost efficient to
Re: And the problem is it is only cost efficient t
Re: And the problem is it is only cost efficient t
PLUS....
Re: Don't Buy Gas on May 19
Re: Don't Buy Gas on May 19-Why
Quite right Gene - the only ones in use are those
Re: Quite right Gene - the only ones in use are th

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