Re:U.S. to release oil from reserves in coordination with ot...
by ccamrobertson on Tuesday November 23, 2021 @12:56PM
(#29320882)
This is great. The drop in capacity from March through August of this year is a bit concerning, but certainly not at historical lows (although I wonder if a tough labor market is precluding some of that capacity from coming online).
Another issue to consider is that gasoline isn't a generic commodity across the United States. California always has the headliner numbers for the most expensive gas, namely because they require their own formulation which only local refineries produce (last I recall, maybe some out of state refineries produce it as well).
California is the most egregious example, however there are other states with boutique gasoline requirements -- see https://www.api.org/-/media/Files/Policy/Fuels-and-Renewable.... It adds another wrinkle to "increase oil > use excess refining capacity" narrative.
Another issue to consider is that gasoline isn't a generic commodity across the United States. California always has the headliner numbers for the most expensive gas, namely because they require their own formulation which only local refineries produce (last I recall, maybe some out of state refineries produce it as well).
California is the most egregious example, however there are other states with boutique gasoline requirements -- see https://www.api.org/-/media/Files/Policy/Fuels-and-Renewable.... It adds another wrinkle to "increase oil > use excess refining capacity" narrative.