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There are a lot of factors contributing to high gas prices, not the least of which is the government mandated custom blends of gas based on the time of yeah and area of the country.
You can't get send gas meant for Jersey to New York because of the unlawful differences in formulation.
You can't use gas inventories from winter in spring or summer because of the mandated differences in formulations.
There was a time when the whole country could choose whatever formulation they wanted, that time has passed.
We also have not increased refining capacity in decades which compounds the unique formulation requirement problems. Bottom line, the myriad formulation requirements of gasoline across the country and the limited refinery capacity creates a bottleneck which increases the cost of it without any regard to the price of oil. This is one of the reason why gas always increases during springtime.
OPEC has a major role in the price of oil even though the majority of oil we import is from Mexico, not the Middle East. OPEC could be undercut with increased exploration of oil finds here in this country but the gears of getting such explorations approved by the Government turn quite slowly or not at all. That means it's left in the ground.
So, Government restricted exploration and restricted refinery capacity + a complex assignment of blends based upon season and region+a general increase of oil demand worldwide= higher gas prices.
It doesn't have to be that way, even with increased oil demand but I don't see it changing anytime soon.
There are a lot of factors contributing to high gas prices, not the least of which is the government mandated custom blends of gas based on the time of yeah and area of the country.
You can't get send gas meant for Jersey to New York because of the unlawful differences in formulation.
You can't use gas inventories from winter in spring or summer because of the mandated differences in formulations.
There was a time when the whole country could choose whatever formulation they wanted, that time has passed.
We also have not increased refining capacity in decades which compounds the unique formulation requirement problems. Bottom line, the myriad formulation requirements of gasoline across the country and the limited refinery capacity creates a bottleneck which increases the cost of it without any regard to the price of oil. This is one of the reason why gas always increases during springtime.
OPEC has a major role in the price of oil even though the majority of oil we import is from Mexico, not the Middle East. OPEC could be undercut with increased exploration of oil finds here in this country but the gears of getting such explorations approved by the Government turn quite slowly or not at all. That means it's left in the ground.
So, Government restricted exploration and restricted refinery capacity + a complex assignment of blends based upon season and region+a general increase of oil demand worldwide= higher gas prices.
It doesn't have to be that way, even with increased oil demand but I don't see it changing anytime soon.
That's a really good point. I heard that ethanol additives are very expensive. One reason is trying to move it through the pipes. Oil can moved fairly easy with water (oil and water don't mix) but guess what happens if you try to move ethanol with water?
"The farther we go, the more the ultimate explanation recedes from us, and all we have left is faith."
~Vaclav Hlavaty
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