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[SwiftDeath]

Saw this mentioned in the CA thread about gas prices but felt it might get better exposure as its own thread. Couldn't find one about it

http://www.nbcchicago.com/traffic/t...ter-Reported-BP-Refinery-Issue-321533691.html

Gas prices could be on the rise in the Midwest after production problems reportedly caused an outage at the BP Whiting Refinery.
The Northwest Indiana Times, citing sources familiar with the situation, reports that a 250,000 barrel-per-day crude distillation unit went down with a mechanical problem at the facility, impacting the production of gasoline, asphalt, jet fuel, and other products made at the refinery. The NWI Times says the unit is responsible for more than half of the refinery’s daily capacity, which is listed at 413,000 barrels per day.

Senior Petroleum Analyst Patrick Dehaan estimates the problem could drive up gas prices across the Midwest, including in Illinois, Michigan, Indiana, Ohio, Wisconsin and possibly even Kentucky and Missouri during the next week. The prices could go up by 50 cents to $1 within the next 72 hours, Dehaan estimates.

BP did not immediately respond to NBC Chicago’s request for comment. It was not immediately clear how long the issue could take to fix.

Noticed prices jump back up by like 40 cents seemingly overnight by me in NW chicagoland

Lock if old

 

[Piecake]

Sweet, Minnesota isnt on that list.

 

[Lord of Castamere]

Well there it is. Wondered why gas spiked.

 

[FStop7]

I know this will never happen but I would love it so much if one of Obama's last acts in office would be to reveal the oil companies have been under a RICO investigation for the past several years and that warrants were being served at that very moment.

 

[thefro]

Is there a reason why the price of diesel never spikes during these refinery "unplanned" shutdowns?

 

[Poodlestrike]

FFS.

I like how prices take weeks/months to go down as prices drop, but the moment there's a cost increase gas goes up by 33% overnight.

 

[Velcro Fly]

I work right down the street from that refinery.

Gas around here was $2.35 a gallon on Monday when I filled up for the work week.

Today I passed a local station and it was already $3.10

 

[Africanus]

Well I just bought a full tank prior to this depressing news.

Now that we're California, I'm changing the name of Chicago to Los Ajos and driving up the cost of living by a few thousand dollars.

 

[tbhysgb]

Lmao, all too convenient.

 

[speculawyer]

We have a lot of refinery capacity. However, instead of building new refineries as more capacity was needed, the kept doing expansions on the old refineries . . . and even shut some small refineries down since they were not as efficient.

Now when something blows up, it can take a lot of refining capacity off the market in one sweep.

 

[Outtrigger888]

How did Minnesota dodge that list? Best state in the Midwest confirmed.

 

[modnar]

Texas isn't on the list.

It's about $2.15-2.25 around here.

 

[Erv]

I work right down the street from that refinery.

Gas around here was $2.35 a gallon on Monday when I filled up for the work week.

Today I passed a local station and it was already $3.10

woah a gaf member that lives in my area. crazy

 

[Charles Alan Ratliff]

I live in Kansas. Gas is $2.35 last I checked, though I haven't left the house in a couple of days. Hopefully it stays off that list.

 

[SwiftDeath]

Luckily I've been waiting a couple extra days to fill up the tank expecting prices to further fall because of the overall market

Spoiler

 

[Dishwalla]

Go East Coast! The station around the corner has it at like $2.30, and it's been dropping. A couple weeks ago gas was like $2.50-$2.60. Haven't seen $3.00 gas in quite a while.

 

[E the Shaggy]

Maybe gas prices shouldn't spike up and the refinery should just take the hit?

 

[LiquidMetal14]

Gas is 2.31 here in FL. Must go lower.jpg

 

[HeySeuss]

Yup. 2.89 in central Ohio. Was 2.00 a couple weeks ago.

 

[Smokey_Run]

Lmao, all too convenient.

Yup. I had this conversation with some friends a couple weeks back, I told them that refineries would magically start having production issues in the coming months. I see it didn't take long.

 

[Cyan]

Thanks Enron.

 

[Admiral Woofington]

I hope price keeps rising.


Sorry guys. It's business, nothing personal.

 

[Fat4all]

I hope price keeps rising.


Sorry guys. It's business, nothing personal.

This post makes no sense at all.

 

[Dreadnought]

Gas is bloody $3.60 here in Nevada despite gas hitting an all time low in 6 years

 

[BobLoblaw]

Taste the California gas price rainbow, bitches.

 

[KingK]

I was wondering why gas went from like 2.35 to 2.99 while i was at work today. Seems kinda suspicious for a refinery to conveniently shut down with no explanation just as a barrel of oil hits record low prices.

 

[Freshmaker]

Is there a reason why the price of diesel never spikes during these refinery "unplanned" shutdowns?

Oh, it does. Not necessarily due to the same factors, but It will skyrocket from time to time.

 

[Suikoguy]

We need new legislation that takes away windfall profits caused by "mistakes" on oil refinery's part.

 

[Cyan]

We need new legislation that takes away windfall profits caused by "mistakes" on oil refinery's part.

I think it's clear that what we really need is total deregulation so that the market can set its naturally low prices.

 

[Enter the Dragon Punch]

Let's say I own a few oil wells in the Canadian prairies.

Would this be bad or good news for me?

 

[Suikoguy]

I think it's clear that what we really need is total deregulation so that the market can set its naturally low prices.

lol, yeah I know the feeling.


Let's look at an example in a typical industry, let's say the Paper Towel Market.

Industry Manufacturer A has issues making Paper Towels.
Manufacturer B and C get extra sales, there may be a very short term shortages, maybe less "discounts" or coupons during the period since it will take a few weeks at least to ramp up production further, or B and C may have increased production costs due to overtime manufacturing to meet the new demand. The free market would work in this situation, this is the free market republicans and libertarians always tout. The company has a vested interest in making sure things run well, since a shutdown in production will cut into their sales, and could even hurt their reputation.

Using the same example when applied to petrol? What interest is there for the refinery to stay up 99.99% of the time? Oh shit, something broke? We make more money! It is in these situations that regulations or penalties need to be applied, so the refinery has a vested interest in keeping things running.

 

[kirby_fox]

FFS.

I like how prices take weeks/months to go down as prices drop, but the moment there's a cost increase gas goes up by 33% overnight.

Makes the least amount of sense to me and almost should be looked into as price gouging. How they get away with it is ridiculous. I saw it spike numerous times 80 cents overnight after a consistent down spiral, a few times because they suspected certain refineries that aren't even affected would be shutting down...they weren't even shutting down, just expected it was going to happen.

It went up about 40-50 cents here overnight. I expect it to hit another 40-50 cent uptick tomorrow.

 

[Darth Karja]

Came into work yesterday, saw the price and said what the fuck. Had to happen a few days before I take a 1000 mile drive.

 

[SwiftDeath]

Last month of Gas Prices in Rockford,IL versus US average

Awesome, average only increased from $2.51 to $2.97 in 3 days

Actual gas near me in NW Chicago is $3.39 now when it was $2.49 maybe 2 weeks ago

This is nuts

 

[GoldenEye 007]

lol of course. So full of shit.

 

[marrec]

Get #rekt flyovers

 

[Stet]

Let's say I own a few oil wells in the Canadian prairies.

Would this be bad or good news for me?

I don't think it would be news either way. This doesn't affect the price of crude, just gas at the pump.

 

[Jimbro72]

Sweet, Minnesota isnt on that list.

How did Minnesota dodge that list? Best state in the Midwest confirmed.

Sadly, it didn't seem to matter. Gas jumped 40 cents overnight a couple of days ago by the gas station by my work (and others I noticed), which is in a suburb of Minneapolis. Went from $2.39 to $2.79 just like that.

 

[JeanGrey]

Gas is 2.31 here in FL. Must go lower.jpg

The only good thing.

 

[malfcn]

Is that why gas went from $2.17 to $2.89 in Ohio over the last two weeks.

 

[TheOMan]

Luckily I've been waiting a couple extra days to fill up the tank expecting prices to further fall because of the overall market

Spoiler

I'm positive others were doing the same thing. I know I was. It almost feels like we're being conditioned to not do that, lol.

 

[Clockwork]

This seems all too convenient imo.

Oh, gas prices are going down? Not so fast, we are having refinery issues.

Sure sure.