Original title "Oil majors resist pressure to invest in new refineries as fuel prices keep rising" compressed to fit within title limits.
Good signal in my humble opinion that more refinery capacity will not be coming online, which should keep refined petroleum product prices higher into the future, further encouraging economically more rapid electrification globally.
Why are gas and diesel prices high? Is it because of lack of refineries? No, it's because crude oil got expensive because Trump attacked Iran and they closed Hormuz.
What's building an new refinery going to do? Reopen Hormuz? Reduce the price of crude? No and no. Is there going to be anything more for the new refinery to do than the old one would have to do? No.
So why would you build a new one? Lack of refineries is not the problem.
toomuchtodo•2m ago
> Why are gas and diesel prices high? Is it because of lack of refineries? No, it's because crude oil got expensive because Trump attacked Iran and they closed Hormuz.
This is factually inaccurate. Is is because refineries are maxed out. You can confirm this directly with Gas Buddy's chief economist. Keyword you'll want to search for is "refinery crack spread."
In my link above, I show there are only 420 refineries left globally, an no new ones will be built. They are the bottleneck for global refined petroleum products.
toomuchtodo•57m ago
Good signal in my humble opinion that more refinery capacity will not be coming online, which should keep refined petroleum product prices higher into the future, further encouraging economically more rapid electrification globally.
https://news.ycombinator.com/item?id=49658793 (additional context)
AnimalMuppet•3m ago
Why are gas and diesel prices high? Is it because of lack of refineries? No, it's because crude oil got expensive because Trump attacked Iran and they closed Hormuz.
What's building an new refinery going to do? Reopen Hormuz? Reduce the price of crude? No and no. Is there going to be anything more for the new refinery to do than the old one would have to do? No.
So why would you build a new one? Lack of refineries is not the problem.
toomuchtodo•2m ago
This is factually inaccurate. Is is because refineries are maxed out. You can confirm this directly with Gas Buddy's chief economist. Keyword you'll want to search for is "refinery crack spread."
In my link above, I show there are only 420 refineries left globally, an no new ones will be built. They are the bottleneck for global refined petroleum products.
https://news.ycombinator.com/item?id=49910374
https://bsky.app/profile/gasbuddyguy.bsky.social
https://www.eia.gov/finance/markets/products/prices.php