Is a shortage of oil refineries pushing up global fuel prices? | Inside Story

Record global oil prices have been blamed on the war in Ukraine, and surging demand as economies recover from the pandemic.
Another reason is a lack of refineries to turn crude oil into products such as petrol, diesel and jet fuel.
Saudi Arabia's foreign minister has called for more investment in refineries.
Global refinery output has fallen by 3.3 million barrels a day since 2020.
So what are the solutions to boost production?
Presenter: Nastasya Tay
Guests:
Bob Cavnar - Energy and oil industry analyst
Thomas O'Donnell - Energy and geopolitical analyst
Josh Young - Chief investment officer, Bison Interests
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#News #FuelCrisis #Oil #UkraineWar #oilrefinery #solution #SaudiArabia

[@igoram1183]

Ohhhhh come on, why now only you telling that not enough refineries, Venezuela and Iran has but America prevented them to produce oil rather a sanction, this isn't fair for consumer countries who relying to oil and gas.

[@TMM-N]

So now it is not Russia to blame now

[@dawggonevidz9140]

Global oil prices are 10-20% *LOWER* than they were during the 2008 GFC. Global gasoline prices are about 30% higher though. Why? Companies who sell gasoline are showing profits this year about 40% above last year. See if you can figure out why we are paying more at the pump. I'll give you a hint, see if you can figure out who is making money here. That's right, oil companies.

[@kirstinstrand6292]

Sadly, green energy will never replace ALL need of fossil fuels...this is the problem.

[@dawggonevidz9140]

@@kirstinstrand6292 no dumbass, that's a different problem. this problem is morons are saying "I wonder why fuel is so expensive" when it's as simple as looking at the profits of the oil companies. do you struggle with focusing on just one topic? it might be autism.

[@Lenny1337i]

Only in USD. Every other currency it’s near ATH. Seems like you didn’t watch the video. Crack spreads are waaay higher than in 2008.

[@Rehook2]

In Europe it has to do too with USD exchange rate. Nowadays 1usd more or less equals 1euro. The same euro buys a lot less dólar, and we pay in USD.

[@reynaldosamonte8779]

You are right greedy oil companies

[@arre888]

People need to wake up and protest against leaders before its too late.

[@annibjrkmann8464]

Protest against what?

[@danvannevele9140]

@@annibjrkmann8464 The corporate politicians..

[@Lifewithemerson323]

You do know it’s the stupid democrats who are shutting down pipelines and refineries for air pollution. How do I know I work in one and deal with bs fines from air quality control.

[@danteerskine7678]

@@annibjrkmann8464 yea. Protest against what?? Sheeples vs sheeples

[@annibjrkmann8464]

@@danteerskine7678 Yes protest against what?

[@rdean150]

1) It takes many years and hundreds of millions of dollars to build a new refinery 2) The world has begun to realize to the dangerous consequences of a global economy that is dependent on fossil fuel. 3) Hence, there is significant political / societal / market pressure to transition away from traditional, carbon combustion energy sources. Conclusion: it seems unlikely and financially risky for energy companies to try to build new oil refineries at this point. The money seems better spent positioning themselves in the other energy sources, such as electric and hydrogen for vehicles, and renewables like offshore wind and even nuclear for power generation. Obviously there will still be a need for fossil fuels for decades, but there is huge opportunity and demand in some areas for alternatives.

[@angelialvares]

Hydrogen is way more expensive than setting up new oil refineries!

[@rdean150]

@@angelialvares Way to focus on (1) while ignoring (2) and (3)

[@cmartin5903]

Well! There is information that the man who made a car to run on water was eliminated because of this same industry. This world is just ridiculous.

[@pazsion]

All oil can be made into gasoline, to say otherwise is bs… we’ve always used “sweet crude”. In U.S. refiners until recently they say otherwise, why?!

[@MilanoMosh]

We have SRUs. It doesn't matter if the crude is sour or sweet, we can extract the sulfur out of it regardless.

[@chriscuntlicker796]

Supply destruction in Europe & N. America is raising prices.

[@epacho12dbrown53]

Because of their satanic devil 😈 behavior against innocent people they don't have nothing everything they make steal from others more 💯

[@Ethan-oy3gb]

NICE VIDEO THANKS MAN, YOU MAID ME KEEP ON GETTING $19,000 EVERY WEEK FROM A NEW TRADING PLATFORMS IN TOWN KEEP ON THE GREAT WORK 👍

[@lucaswhite3799]

Very true. Just recently fidelity said they have been accumulating bitcoin since 2014, then again, it was announced that the SEC will be approving BTC spot ETF come 2023.

[@lucaswhite3799]

That's to show whales and smart ones are buying bitcoin quickly, but they won't let the public know, it's such a pity that people are worried about the latest cars

[@lucaswhite3799]

and gadgets instead of securing their place in the future by dollar cost averaging bitcoin every month here and there.

[@Ethan-oy3gb]

Through her info 👇📩

[@Ethan-oy3gb]

+1510

[@wbh73]

More refineries or less consumption?

[@kylesmith8128]

I'm with you, mate. People need to reduce their consumption and increase resource efficiency.

[@amanjaiswal7065]

@@kylesmith8128 yup.

[@kirstinstrand6292]

The desire to move to sustainability needs to support fossil fuels while developing green! Only Blind, Overly Eager, Uneducated humans cannot hold two opposing concepts in their minds.

[@wbh73]

@@kirstinstrand6292 l said less. You have to start somewhere. Adding refineries at this stage would be dumb, like your comment.

[@FALprofessional]

This was an informed and extremely balanced discussion. +1 Al Jazeera. Keep it up.

[@eebb1030]

it is the consumption why each family need 4 cars ? this is the main problem

[@Shirokuma15]

Well, the Father working in company A needs one car, Mother working in company B needs one car, Older brother working in company C needs one car, younger sister study in college D needs one car,.their house far from public transport hence car..pretty much sum it up 🤣🤣

[@kirstinstrand6292]

@@Shirokuma15 too sophisticated for ride SHARES? Just wait! 😁😬

[@richardpeychers4076]

NewZealand has just closed their only refinery claiming it was ageing , requiring expensive maintenance and no longer fit for purpose, considering the country had the luxury of buying all ready refined fuel from several Asian suppliers. Given the recent situations of reliance on outside sources one must ask, was this a wise decision.

[@reuel2333]

Trinidad and Tobago had a similar problem with cost to maintain

[@zedbronson835]

It was a very bad decision, having a refining base in your own country is the only wise decision especially in a time of crisis .... Greeting from Aussie

[@apakansaja8505]

Russia Friendly Countries that have oil refinery have hit the jackpot....buy low sell high.... Russia Unfriendly Countries can buy from this countries BUT must pay in local currencies. Euro and USD are no longer welcomed.

[@jaychah2563]

But when your country needs aid they love seeing the US Dollar

[@angelialvares]

that's because US dollar is a bankrupt currency. U.S. debt to GDP ratio is a whopping 134% way over that of Sri Lanka....but they have the WMD and so it remains main exchange currency. Russia has the guts to say no to U.S. dollars.

[@starsoffyre]

The lack of crude supply is still the base cause. Saudi Arabia is not increasing output because they're profiting greatly from high oil prices. They're using lack of refining capacity as an excuse.

[@karlbohlinify]

Regarding electric cars: it is the driven amount of kilometers that matters, not the amount of cars on roads and driveways. Electric cars are bought mainly by the heaviest users

[@pluribus_unum]

Most electric cars on the planet are still being charged with electricity created by the burning of natural gas or coal. Better than just burning more petroleum products in our cars, but so far electric cars are not a fossil fuel free alternative by any means. We need to replace those electricity generation sources as fast as we can, which requires strong government intervention because the profit motive is hostile to the transition.

[@kirstinstrand6292]

EVs STILL require huge amounts of ENERGY to manufacture; people have blocked this reality from their minds! 🤔😬

[@danteerskine7678]

@@kirstinstrand6292 EV will never replace old school petrol and diesel engines

[@Slynell1]

@@danteerskine7678 oh yes they will

[@Deameseames]

Yeah they are taking advantage of the situation all

[@CommonSenseBeatsIntelligence]

The goal of Usery is not to refine your own but sell it to someone else.

[@krishnaSagar69]

Short thing is everything can’t go up and up forever!

[@oliversparks1459]

Please Explain how you DIG Crude Oil Out of the Ground

[@jakepistolero]

No. That would be qestern sanctions

[@JuanGarnicaVera]

With the actual Venezuelan regime, there is no chance to get that extra oil from that country.

[@nathanielsingleton6302]

This is what going green looks like. 🤗🤗🤗

[@ianthesiow3013]

(USA) America called it "Liberation" instead of "Invasion". That was what US call it in Iraq, Afghanistan, Libya, Syria, Yemen, Somalia and the list goes on... Why the double standard? Confused... Please enlighten. Genuine question... Instances of the United States "liberated" or overthrowing, or attempting to overthrow, a foreign government since the Second World War. (* indicates successful ouster of a government) China 1949 to early 1960s Albania 1949-53 East Germany 1950s Iran 1953 * Guatemala 1954 * Costa Rica mid-1950s Syria 1956-7 Egypt 1957 Indonesia 1957-8 British Guiana 1953-64 * Iraq 1963 * North Vietnam 1945-73 Cambodia 1955-70 * Laos 1958 *, 1959 *, 1960 * Ecuador 1960-63 * Congo 1960 * France 1965 Brazil 1962-64 * Dominican Republic 1963 * Cuba 1959 to present Bolivia 1964 * Indonesia 1965 * Ghana 1966 * Chile 1964-73 * Greece 1967 * Costa Rica 1970-71 Bolivia 1971 * Australia 1973-75 * Angola 1975, 1980s Zaire 1975 Portugal 1974-76 * Jamaica 1976-80 * Seychelles 1979-81 Chad 1981-82 * Grenada 1983 * South Yemen 1982-84 Suriname 1982-84 Fiji 1987 * Libya 1980s Nicaragua 1981-90 * Panama 1989 * Bulgaria 1990 * Albania 1991 * Iraq 1991 Afghanistan 1980s * Somalia 1993 Yugoslavia 1999-2000 * Ecuador 2000 * Afghanistan 2001 * Venezuela 2002 * Iraq 2003 * Haiti 2004 * Somalia 2007 to present Honduras 2009 * Libya 2011 * Syria 2012 Ukraine 2014 * 2014 - 2022 - 6 countries yet to verify. Pakistan 2022 *

[@joeylietgabo-skinner5315]

It is amazing how poorly informed most of the world is be being jealous of the USA. 1this is the most peaceful time in history. Go ahead check. 2 all of these are backed be most of the world governments. For a example Lybia. The USA only went in after Europe couldn’t handle it. The didn’t have the military or espionage to do it so asked the USA. Now the ignorant kids of those same Europeans blame America for it. Lmao.

[@Rehook2]

Josep Borrell, High Representative of the European Union for Foreign Affairs and Security Policy referring to those questioning the effectiveness of EU sanctions on Russia recently said: “They don’t have eyes? They don’t look to the graphs? They don’t consider figures”. Ok, let's have a quick look ( IEA): - 2005 Crude oil Peak. Top Quality , the most versatile one. - 2019 Total oil Peak : Production 84,5 mbd. Includes Crude, Fracking, Extra heavy Oil and Biofuels ( Excluded Natural Gas Liquids, basically used to produce plastics ). You'll find some higher numbers around that do includes this liquids. Makes things look better but energy wise, what really matters, they're despicable. Producción 2022: 80.4 mbd. - 2018 Diesel Peak. A 15% drop till the date. The BLOOD of the system. - 2019 Coal Peak. - 2016 Uranium Peak. A 23% drop till the date. Besides the main producer right now, 40% of total world production, is a country very much under Russia influence, Kazakhstan. So much so it recently asked Russia to sent the army in to deal with internal social unrest. - 2030 Natural Gas expected Peak. One funny note from a delusional past, that in a way resembles present times. Around the middle of the past century, in the midst of nuclear power fever , people were told this new energy was going to provide so much electricity at such a low price that electricity comsuption meters wouldn't be necessary anymore. At that time Camel cigarettes were recommended by doctors too.🤥🤥🤥🤥🤣 Now seriously, this looks to me like a structural mess in energy supply. And a IEA wishful thinking on its demand scenario unless recession or depression takes place in big parts of the world economy. Consider this green new deal is gonna take a few decades so in the meantime it's not clear how we are gonna do it. I guess we'll see.

[@judykinsman3258]

While the planet is burning. This is insanity!! Go Green!!

[@juanpablosanchezaveleyra6454]

Im pretty sure you have the money to invest in green transition, and somehow the inredible knowledge to avoid the technical challenges of implementing quantitative unreliable sources of energy.

[@amanjaiswal7065]

Insanity is people dying of hunger. Poverty and improving living standards should be our priority. The West used the fossil fuel to industrialise themselves yet they have not adopted green energy and they expect the poorer nations to adopt green energy before they do? STUPIDITY AND CRUELTY has it's limits. The west should be atle 40 years ahead in adopting green energy but instead the developing world seems to be doing much better than these irresponsible so called wealthy nations

[@angelialvares]

Looks like all the commentators are greedy investors and have just missed the boat! Nice to find one comment talking about going green!

[@williamemrich9349]

Just a thought: What about reducing 2/3 the dependence on oil and gas by 2025 in the USA and send that amount of oil for Europe? What is troublesome, is when we buy anything from Russia, we are actually supporting Russia’s war effort against Ukrainians. And our or Europe effort to support Ukrainians is in vain.

[@skycat04]

The greed of the oil companies push it up (because they know that it's over for the industry, and they want one last squeeze out of their costumers). Let's just hope that that enormous amount of money they have now will be mostly invested in clean energy (they are already investing heavily in those projects, no matter how ironic and hypocritical it is), that would still benefit us in the long run.

[@MilanoMosh]

Well, no. It's not ever for the industry at all. Even if we stop using gasoline or diesel, we will still continue refining oil for current byproducts.

[@upupandaway5646]

I'm greedy too. I BOUGHT A TON OF OIL STOCKS AT COVID CRASH MADE A FORTUNE $$$$$$$$$$

[@MinhLe-vj9ij]

It is a good, informative presentation. Oustanding, thank you

[@yashpanchal7065]

WHAT A SHAME!

[@amanjaiswal7065]

INDIA has more than enough. Yet petrol and diesel have crossed 100 rupees Nightmare indeed

[@angelialvares]

Last year India spent 211 BILLION dollars IMPORTING oil. 50, 000 cars are added to our roads daily. You cannot move about without masks around traffic. Our debt to GDP ratio despite our oil refineries is 80%. Won't be long before we follow the Srl Lanka new law of digital card for use to fill your car only twice a week. If outside countries refuse us oil we will be stuck in cities with no food....Modi and Shah already have their multi crore jet bought and ready to fly off to Maldives, or elsewhere. Wake up and smell the coffee.

[@pratikkumar8409]

@@angelialvares no we don't

[@davidlemay4761]

4cylender vehicles and motorcycles are the way of the world today.

[@ramseyabsessien8990]

Electric cars are really expensive and majority of the people are poor. This means that electric vehicles are still out of reach for majority, hence, oil will continue to be the king.

[@ermitanyoed4185]

How about deuterium?

[@Stephen_Jabs]

LETS to electricity then and totally leave the oil and gas energy , easy to say right?

[@reynaldosamonte8779]

Include greed for big profits of oil producers,refineries that also contributed in skyrocketing of fuel prices almost majority of businessess are only after big profit they dont care about moral obligations to our fellow human beings

[@copywrittenambulanceproject]

and their propaganda sure is getting "more refined"... heheh, if you get what I'm saying. they think they can trick us by using the method: "pose it as a question" to make a suggestion. BS, eh?

[@amanjaiswal7065]

Ya it's not like others are Saints. Every person , every country for itself. It's always been like this

[@georgewhite2667]

Speed up electric cars

[@juanpablosanchezaveleyra6454]

Yeah, that electricity needs to be generated with oil

[@kirstinstrand6292]

Another uneducated, overly eager GREENIE!

[@danteerskine7678]

@@juanpablosanchezaveleyra6454 bingo

[@fullcircle4723]

No. Its banks writing money.

[@cmavuso6068]

USA prints fake dollars

[@simonclarke7309]

The new American century

[@lostpony4885]

"The world has enough oil but is running out of planets"

[@aznmien1871]

fuel cost more cause Russia needs the funding for the war... and the world pays it... oil companies slows production so they can make people pay the higher prices..

[@Madame702]

No Azn, what has happen is that Russia and China is de-globalizing on oil. Remember Azn, we Americans destroyed the Imperial system, got rid of Imperial governors and tariffs that rule over your country, and created "Free Trade" and "Globalization" we created the "New Silk Road" anyone could trade with anyone through out the world. But now China and Russia is falling apart we must do without them.

[@aznmien1871]

@@Madame702 "china and russia is falling apart" ? lol i think the whole world is falling apart...

[@Madame702]

@@aznmien1871 Not America we doing great. You see we are one that created "Free Trade" to fight Soviet Union. But Soviet Union died thirty years ago, so we are pulling back. All the countries that railed against American order are only now realized just how f**ked they are Iran, India, China, Russia they needed America Globalization but now they are totally screwed.

[@amanjaiswal7065]

@@aznmien1871 ya if any of the big economies fail , the world fails

[@danteerskine7678]

@@amanjaiswal7065 China, India and Russia have become more powerful than any western countries.

[@misshilpi7981]

Nice

[@Val1414_]

Great video. you've remind me of what someone once said❤The richest people in the world build networks; everyone else is trained to look for work.” “There is a difference between being poor and being broke. I once attended similar and ever since then i been waxing strong financially, and i most tell you the truth..👍

[@bigr3805]

simply the GREED of MBS

[@ResidentNotEvil5]

Only way make more electronic vehicles and solar cars

[@sultanmia3895]

Nice 🧡

[@georgewhite2667]

Blockade of kelinengrad is needed

[@thomaskim3128]

What we need is WW3.

[@amanjaiswal7065]

You want the world to suffer more?

[@philthyrourke5384]

Try taking the war machine out of the picture

[@frants48]

BECAUSE OF MAN'S GREED. IT'S EASY TO DO EVIL THAN GOOD IN THIS PLANET.

[@macawism]

Which man?

[@ponkacbg1969]

it's CIA and MI6

[@an_what]

Lady you don't dig all up you drill for it seriously

[@misshilpi7981]

Good dio

[@michaeljand3050]

In my opinion its not refining capacity tat is to blame for high fuel prices. I think its taking attention off from greed of countries producing oil. If the problem is refining why is crude oil price is high. Now refiners are taking advantage as crude oil price is so they have added high margins to refined products as everyone was blaming crude oil. In the end its the greed which is going to lead to global recession and price of which will be paid by these oil companies when price drop to $20 a barrel.

[@eonthinker100yrago8]

Nuclear.it’s the answer,just look at France.

[@sbxvnnvj]

My greatest happiness is the $ 28,000 biweekly profit I get consistently.

[@shanediggens4905]

Yes I'm also a living testimony of expert Nora

[@shanediggens4905]

I'm happy today because of Mrs Nora

[@SharhbiniRauf]

Fuel can come from cattle manure, sea water NaoH and KOH, too harmful waste oil and gas, if world out of run logs and building material (cement), plastic can be use as subtitute for it, HHO GENERATOR for cooking stove, and vehicles, oil and gas for plastic industry (non 1 times use recycleable)

[@amanjaiswal7065]

World has already adopted, BIO gas. Still it's not enough. calorific value of bio gas is too low

[@kylesmith8128]

I agree with the man in white who said that this is a good opportunity to normalize relations with Venezuela. I am just not sure what's going on in Maduro's head, and I doubt he would be willing to make meaningful changes to his authoritarian style.

[@Madame702]

It not going happen Kyle that a pipe dream. I've to talk to oil men from US, Venezuela totally screwed up and mismanaged the their oil fields it going take a Minimum investment of 10 billion US dollar to upgrade and restore the oil fields and 5 years to get it going again.

[@amanjaiswal7065]

That is exactly what india has been saying. You need to punish Russian than open Venezuelan oil to the world.

[@kylesmith8128]

@@Madame702 So it is a bad idea to start the process because it cannot happen immediately? Then in 10 years we can examine the same questions.

[@Madame702]

@@kylesmith8128 You see the problem you is your always trying solve the wrong problem. More like trying Ice Skate up hill. Not smart. Don't just parrot what other say and let other people do your thinking for you. Our problem isn't oil production our problem is refinery production Russia cannot export gasoline and disease out of the Black Sea because insurance company told Russia before they started the war in Ukraine if you start war well not insurance any vessel going into active war zone. So ship captains are refusing to go into the Black Sea to pick up Russian cargo.

[@Madame702]

@@kylesmith8128 Second, problem we have is that China has freaked out, they refine oil into diesel gasoline as well and they taken gasoline and diesel off the market, they have even taken their fertilizers off the market as well. So not only do we have a refinery capacity shortage many people will start starve around world.

[@angelialvares]

If people want to keep global temperatures below expected rise of 1.5 C, they will have to walk, live closer to their jobs, and demand efficient public transport. With 50,000 new registrations in a country like India alone, more cars means more heat for our Planet and more pollution. If you are stuck in a snowbound area, it takes five minutes to bring the temperature of your car indoors to a comfortable warm environment. Now think of how zillions of cars world over keep heating up the Planet and add deadly CO to our air. Greta is the voice of the youngest generation. Right now they have to wear masks and cannot breathe the air freely. I'm sure oil producers around the world have children. Do they care enough about these children to insist countries make efforts to switch to public transport which carries 50 or more people to their jobs? In the end it's not about money but about the quality of life. The younger generation is dropping dead from heart attacks as they don not use their legs enough and sit all day in front of computers. I've read a report saying sitting all day is worse than junk food.. There are air sacs in our bones that do not service those areas if we do not walk. A civilisation that cannot use it's own internal energy capacity and relies entirely on outside energy will go bankrupt before too long. Already most countries have a debt to GDP ratio of 30 to 60%! India with oil refineries is at 80% debt to GDP.!!! Mother Nature has no use for a species that disturbs her balance environmentally and her genius manifests on the principle of "Cause and consequence" The pathogens get deadlier and increase in number as the air gets more contaminated ....after all bacteria and viruses are part our natural living environment...They adapt to the changing environment. The question is will we too adapt? Maybe...This will be answered in the future as I don't meet anyone today who is willing to give up car or motorbike. If we do get wiped out from the rising heat levels, then ours will be a civilisation that failed like all others that came and died out in earlier Human history. Sri Lanka is a wake up call on outside energy dependence.

[@pazsion]

Electric vehicles will be self powered, no additional external power is required

[@cryptomessiah2582]

To all Crypto Investor: Axie Infinity(Defi Game) is gonna pump in the next few months because of their upcoming update.Invest now. God Bless us all investors×::