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With the Hurricane Gustav on the approach, mass media is already speculating gas reaching $5.00 per gallon at the pump. We are going to show you why you shouldn’t be stuck with a hefty bill. Unlike are mass media friends, we dug around, and looked at refinery outputs around the United States. While msnbc.com talks about oil stock trading, and platform shut downs, we will show facts, and figures related to oil production. It’s as if big oil companies did not learn from Hurricane Katrina about shifting production to other refineries in different PAD districts.
Let’s start with some quick facts:
The facts according to Energy Information Administration
Total refineries in the U.S. operating = 146
Total refineries in Louisiana operating = 19
Louisiana refinery = 13%
Capacity of U.S. refineries in gasoline output = 2,420,968 barrel a day
Capacity of Louisiana refineries in gasoline output = 585,000 or 30789 barrels a day per refinery.
Louisiana refinery output = 24% of total U.S. production
Louisiana Operable (Barrels per Stream Day) = 17% of total U.S. refinement.
PAD district 4 produces only 34,900 barrels per day off of 16 refineries which equates to 2181 barrels per refinery a day.
PAD district 5 has 35 operable refineries producing 205,900 barrels of gasoline per day, or 7,168 barrels per refinery per day.
Now let’s sum this up. Louisiana holds 24% of our refineries, and this state produces 17% of our automotive fuel. We have other PAD districts capable producing as much, but our not doing so. See the consumer demand for fuel is decreasing, so production is getting consolidated to more lucrative parts of the United States. Louisiana already has the core value of refinement, so it only makes fiscal sense to focus production on this state. Oh but wait, that is Gulf Coast State, prone to Hurricanes. Our friends in the big oil industry forgot look out for us on this issue.
Look at for example PAD district 5, nearly double the refineries, but only 34% of Louisiana’s output. Here is political jab, Gordon Smith an Oregon Senator, is accused of giving “Big Oil” tax breaks read more. Do we see a direct correlation? Gordon Smith happens to preside in PAD district 5, gives tax breaks to oil companies, and yet they aren’t even producing as much oil as they can.
Here is a project path of Gustav along with refinery locations in Louisiana.

Here is a snapshot of offshore drilling platforms in the gulf coast.

We can only wait to see what kind of damage will occur.
Why are we so destined for failure? Because we are not forcing the hand. Demand for Oil is decreasing , so it only makes financial sense for big oil to gouge consumers where they can. We need to see a shift in our overall refinery productions, particularly when there is a natural disaster brewing offshore.
This article is an argument for why we put so much emphasis on one region to produce our everyday fuels. And why are we not increasing productions in other districts when faced with catastrophes. To solidify this argument, we ask that you take a look at this “facts and Figures” page.

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