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Refineries
Talking Points
Washington,
Jun 18 -
Democrat Claim: Refiners are running below normal production capacity causing
a shortage in the supply of gasoline and diesel fuel in an effort to drive up the price
at the pump.
Fact #1 The U.S. continues to import gasoline: Roughly 10 percent of the
gasoline consumed in the U.S. is imported to meet demand. The U.S. imports
approximately 1.3 million barrels per day of gasoline including blendstocks. (U.S.
Energy Information Administration)
Fact #2: Refining production has increased: While there has been consolidation
in the number of refiners since 1980, refining production has increased by 41
percent as refiners have expanded production at their facilities (U.S. Energy
Information Administration).
Fact #3: With $4 gasoline demand is down: Refinery capacity fluctuates with
supply and demand. With $4.00 per gallon gasoline and even higher diesel fuel,
not surprisingly, domestic demand is down so far this year compared to last year.
(U.S. Energy Information Administration).
Demand for gasoline was down 1.5% in the first quarter this year and distillate
demand was down 4.5%. Even with the slower demand, refining capacity has risen
from 85%-89% over the past month. Just in the past week, gasoline inventories
rose by 2.9 million barrels. (U.S. Energy Information Administration).
Fact #4: Gas prices are primarily driven by the international price for crude
oil: Despite ample gasoline stocks to meet America’s driving needs, economic
growth throughout the world continues to make supply and demand conditions in
the global oil market extremely tight, keeping crude and gasoline prices high. The
price of crude oil now represents 73 percent of the price consumers pay for
gasoline at the pump. (U.S. Energy Information Administration)
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