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Biden Gets the Boot
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<blockquote data-quote="refineryworker05" data-source="post: 4705050" data-attributes="member: 66082"><p>No well both times it was because demand was down due to a recession in 2008 and due to people not driving and traveling as much during COVID. Plus there is this thing they call the crack spread where I work. I don’t fully get it, but my basic understanding is that it’s the difference between the cost of buying crude oil and the price of selling it to gas stations, us government federal and local, airlines, diesel trucks etc. and my understanding is the price of that is driven by the demand, but also the supply. If there is an over production of crude oil even if the demand doesn’t drop at all the prices will drop, and obviously the opposite is true. There is a whole department dedicated to selling the stuff we produce lots of engineers run it. There’s a lot to offset that stuff though. Like if crude oil prices go higher some refineries buy worst crude oil that’s more difficult to turn into products, or within the refinery you can run bad hydrocarbons to units that don’t normally run that type of hydrocarbon, but this comes with the trade off of shortening the life of your equipment and the catalyst in reactors, etc. they can alsorerun products and do different kind of blending or they can find buyers of specific profitable products. it’s a lot to that part of it. I just do what they tell me in terms of making on spec product and sending it to the correct tanks for shipping or blending.</p></blockquote><p></p>
[QUOTE="refineryworker05, post: 4705050, member: 66082"] No well both times it was because demand was down due to a recession in 2008 and due to people not driving and traveling as much during COVID. Plus there is this thing they call the crack spread where I work. I don’t fully get it, but my basic understanding is that it’s the difference between the cost of buying crude oil and the price of selling it to gas stations, us government federal and local, airlines, diesel trucks etc. and my understanding is the price of that is driven by the demand, but also the supply. If there is an over production of crude oil even if the demand doesn’t drop at all the prices will drop, and obviously the opposite is true. There is a whole department dedicated to selling the stuff we produce lots of engineers run it. There’s a lot to offset that stuff though. Like if crude oil prices go higher some refineries buy worst crude oil that’s more difficult to turn into products, or within the refinery you can run bad hydrocarbons to units that don’t normally run that type of hydrocarbon, but this comes with the trade off of shortening the life of your equipment and the catalyst in reactors, etc. they can alsorerun products and do different kind of blending or they can find buyers of specific profitable products. it’s a lot to that part of it. I just do what they tell me in terms of making on spec product and sending it to the correct tanks for shipping or blending. [/QUOTE]
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