Gasoline Price Changes - Federal Trade Commission
Gasoline Price Changes - Federal Trade Commission
Gasoline Price Changes - Federal Trade Commission
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GASOLINE PRICE CHANGES:<br />
Capacity (Millions barrels per day)<br />
40<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
Source: EIA<br />
Figure 3-8: Crude Distillation and Downstream Charge Capacity (1985-2004)<br />
Jan-81<br />
Jan-82<br />
Total Downstream Charge Capacity<br />
Jan-83<br />
Jan-84<br />
Jan-85<br />
Jan-86<br />
Jan-87<br />
Atmospheric Crude Oil Distillation Capacity<br />
Jan-88<br />
Jan-89<br />
Jan-90<br />
Jan-91<br />
Jan-92<br />
Jan-93<br />
Jan-94<br />
Jan-95<br />
Jan-96<br />
Jan-97<br />
Jan-98<br />
Jan-99<br />
Jan-00<br />
Jan-01<br />
Jan-02<br />
Jan-03<br />
b. <strong>Changes</strong> in inventory strategies have reduced refinery costs.<br />
Crude oil and gasoline inventories play several crucial roles in energy markets. See Box<br />
3-6. Maintaining inventories, however, is costly, both in terms of the value of assets held in<br />
inventory and in terms of the actual costs of storing the product. For example, at the end of<br />
November 2004, there were 292 million barrels of crude oil, valued at roughly $40 to $50<br />
billion, in private inventories in the U.S. Private inventories of gasoline totaled 210 million<br />
barrels, valued at another $10 billion. By reducing inventories, firms free up capital to invest in<br />
other areas and save storage costs. Low inventories may, however, provide little cushion for<br />
gasoline supplies when there is an unexpected supply disruption. See infra Chapter 4(II).<br />
54<br />
Jan-04<br />
FEDERAL TRADE COMMISSION, JUNE 2005
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