Wichita Out of 100LL

GRG55 said:
If refining was such a great business you wouldn't see the integrated international oil companies steadily carving off or selling off their refining and retail operations.
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And you wouldn't see all the astute equity and M&A groups buying up or brokering (often at discount prices) those very same oil fields, refineries, and retail operations.

What's that saying... he who has the gold makes the rules.

Okay... back to airplanes. ;)
 
Just got this email from our supplier:

Hurricane/Tropical Storm Harvey continues to impact aviation fuel production and transportation on the Gulf Coast. On August 30th Colonial Pipeline took Colonial Line 2, which primarily transports diesel and aviation fuel, out of service between Houston and Lake Charles and there is only intermittent shipments east of Lake Charles due to lack of product to put to the line. Line 1 is operating at reduced rates. Explorer Pipeline is also out of service. Many refineries in the Houston area and Beaumont/Port Arthur are shutdown or operating at greatly reduced capacity.

This supply interruption may or may not affect your aviation business depending on the region your FBO is based. This issue will primarily affect the eastern half of the United States, but we thought it was prudent to keep all our customers informed regardless of the area in which you operate. While our goal is to continue to serve you in the same manner with which you have grown accustom, there may be interruptions in supply which could delay deliveries or cause fuel to be sourced from alternate terminals. This could impact your fuel price as well as your freight costs. Our dispatch department will communicate with you regarding any impact to your fuel cost once your fuel order is placed.
 
Doggtyred said:
The refinery margins are unchanged. The people profiting from your scenario are the crude oil drillers/producers.
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How does a refinery refine? Does it take energy to make energy? What defines the crack spread? Can that spread be optioned? If so, can a refiner trade those options? :dunno:
 
tspear said:
Not based on public company financial reports. They make a margin which is percentage based; and the higher the price of crude, the higher the profit...

Tim
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Your comment is correct when applied to an all encompassing oil company. It is not correct when applied to a refinery as a stand alone company or as a profit center. Refineries provide a service, refining oil. The service has costs that are the same regardless of crude prices and they are paid for the refining service regardless of crude prices.
 
Clip4 said:
Probably not storm related. Could be a someone didn't order in time or a EQ problem at the airport.
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I was parked at Yingling at ICT over the Labor Day weekend. They were a little vague about it, but said that it was not hurricane-related and that an incoming fuel shipment had been contaminated with metal.

The same contamination was found at the other FBO, Signature.

I hopped over to Augusta and filled up there.

Sent from my ONEPLUS A3000 using Tapatalk
 
jv44rall said:
I was parked at Yingling at ICT over the Labor Day weekend. They were a little vague about it, but said that it was not hurricane-related and that an incoming fuel shipment had been contaminated with metal.

The same contamination was found at the other FBO, Signature.

I hopped over to Augusta and filled up there.

Sent from my ONEPLUS A3000 using Tapatalk
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Interesting.

I trained at Augusta. Nice little airport especially for those of us on the east side of ICT. Hope you had a good experience.
 
MBDiagMan said:
Refineries ... are paid for the refining service regardless of crude prices.
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Huh... I'm trying to understand your mental model. Just who is making these payments?

The 38 years I worked in refineries, we bought crude oil, chemicals, services, and utilities, and processed them into gasoline, jet and diesel. We then sold the products at market prices. Sometimes we made money... sometimes we lost money. No one ever paid us for our refining service. Where should we have sent the invoice to generate such a payment?

It's a marketplace out there... no payments for refining, regardless of anything.

Paul
 
I am speaking of the refinery portion of the business. Most refineries are part of business. The business you describe is one that involves more than the refinery itself. You were buying materials processing them and selling the end product. The refinery itself was almost certainly on the books as profit center or other similar means of accounting. The costs of the refinery portion of the business were mostly fixed with only a minor variation in the cost of the process.
 
jv44rall said:
I was parked at Yingling at ICT over the Labor Day weekend. They were a little vague about it, but said that it was not hurricane-related and that an incoming fuel shipment had been contaminated with metal.

The same contamination was found at the other FBO, Signature.

I hopped over to Augusta and filled up there.

Sent from my ONEPLUS A3000 using Tapatalk
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I heard today that the Phillips 66 terminal in Kansas City had a "quality control issue" and had shut down temporarily until it's resolved.
 
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