Bro Haut vs Oil part 2

[burroak]

Re: Bro Haut vs Oil part 2

Quit whining, ya great big bunch of windbags. What you are paying for your oil and gas is practically negligible in comparison to other developed countries.
Personally i would like to see much higher oil prices, it is the surest way to curb our country's rather excessively addictive consumption.

With that attitude, I hope you weigh exactly what the American Heart Association recommends because that steak you enjoy will be going to $80 a pound. Are you of the opinion that we should be driven to the poor house so that we can live like the poor?

Liberal - One who knows what is best for you and will spend your money to make sure that you do it.

 

[kenimpzoom]

Re: Bro Haut vs Oil part 2

This is a mostly unbiased article explaining the whole issue.

http://money.cnn.com/2007/05/10/news/economy/lower_gas_prices/index.htm?postversion=2007051308

"...some sections of the country, such as New England, could stand to see another refinery built, but he also doubted whether adding to refining capacity was a smart business decision.

"As a refiner, you're committing a couple of billion dollars, and the government's passing mandates [that are going to] reduce gasoline demand. You're going to be thoughtful of that," he said."

A new refinery is a multiple billion dollar decision. Knowing the history of the oil industry (and the volitile prices), why would you build a new one?

Ken

 

[SuperNova]

Re: Bro Haut vs Oil part 2

Big Oil plays fairly in a fair market; So does Microsoft.

If you believe either of those statements, I have some oceanfront property in Kansas to sell you.
--
Stan

 

[Boomyal]

Re: Bro Haut vs Oil part 2

I do wonder how much longer the American love affair with the big V8 engine will last. Sooner or later fuel economy (mpg) must become a driving factor in the US car industry.

We certainly can't stop while the Aussies have all those sweet little V8, rear wheel drive cars, now can we?

Besides, while filling up yesterday, up rolled a new Shelby GT500 Mustang convertible. The pipes on that sounded soooooooo good. I think driving a good V8 is almost better than ***!

 

[12Footer]

Re: Bro Haut vs Oil part 2

If I will pay $3.00 a gallon for gas, there will be an oil company there to provide it. How much more will I pay? Doesn't matter. If I will pay it, someone will produce it.
The very day I stop buying gas, the gas company won't sell me any more.

True story... Take all of that to the bank (while you can).

 

[ZmOz]

Re: Bro Haut vs Oil part 2

"As a refiner, you're committing a couple of billion dollars, and the government's passing mandates [that are going to] reduce gasoline demand. You're going to be thoughtful of that," he said."

Do you honestly think American demand for gas is going to go down by even a drop until the day we run out? Even as cars get more efficient and laws become more strict, the population increases and more and more people start using gas every day.

What they mean to say is, "if we built another refinery then what excuse would we use to charge so damn much?"

 

[Plainsman]

Re: Bro Haut vs Oil part 2

Do you honestly think American demand for gas is going to go down by even a drop until the day we run out? Even as cars get more efficient and laws become more strict, the population increases and more and more people start using gas every day.

What they mean to say is, "if we built another refinery then what excuse would we use to charge so damn much?"

So what's your point? Doesn't it make sense that as more folks use gas, we build the necessary refiners to accommodate the need for more gas?

And for how many years did the oil companies NOT make a good profit? So it's a bad thing that a company does good? If they can make a 100% profit, why not do it?

 

[Haut Medoc]

Re: Bro Haut vs Oil part 2

And for how many years did the oil companies NOT make a good profit?

Never....
They always make a profit.....​

 

[RPJS]

Re: Bro Haut vs Oil part 2

I think I've found a place where Z will be happy

http://www.800padutch.com/amish.shtml

 

[ZmOz]

Re: Bro Haut vs Oil part 2

So what's your point? Doesn't it make sense that as more folks use gas, we build the necessary refiners to accommodate the need for more gas?

Ken is trying to say that they don't want to build more refineries because they think demand could go down. You're absolutely right, as we use more gas we need more refineries. Anybody who thinks a new refinery won't make a profit is simply delusional. The demand for oil will never go down, at least not in our lifetime.

As for the fact that it cost several billion dollars to build a refinery, well, an oil company spending that much is the same as me spending $2000. Even if I lost it, it wouldn't be a huge deal.

On the other hand, if they build another refinery, they can't manipulate the supply so easily, and prices will go down. Why would they do that? That's the reason they don't build one.

 

[Haut Medoc]

Re: Bro Haut vs Oil part 2

On the other hand, if they build another refinery, they can't manipulate the supply so easily, and prices will go down. Why would they do that? That's the reason they don't build one.


YESSIREE!...... ​

 

[Plainsman]

Re: Bro Haut vs Oil part 2

Ken is trying to say that they don't want to build more refineries because they think demand could go down. You're absolutely right, as we use more gas we need more refineries. Anybody who thinks a new refinery won't make a profit is simply delusional. The demand for oil will never go down, at least not in our lifetime.

As for the fact that it cost several billion dollars to build a refinery, well, an oil company spending that much is the same as me spending $2000. Even if I lost it, it wouldn't be a huge deal.

On the other hand, if they build another refinery, they can't manipulate the supply so easily, and prices will go down. Why would they do that? That's the reason they don't build one.

Looks like Haut has a son. Scary that the younger folk believe this carp.

 

[Coors]

Re: Bro Haut vs Oil part 2

Every time BIG OIL want's to build a refinery, the socialists raise a stink, and kill it. Isn't your electricity bill controlled by BIG UTILITIES? Always guaranteed a % profit. ( I think you confused Sarantis, buy putting political statements in a mech forum).

 

[RPJS]

Re: Bro Haut vs Oil part 2

On the other hand, if they build another refinery, they can't manipulate the supply so easily, and prices will go down. Why would they do that? That's the reason they don't build one.

What would stop them from manipulating the supply, there is no law on having to refine excessive quantities of crude.
Build the refinery and keep production just below demand, the cost of a new refinery would be another reason for a price increase.

 

[Haut Medoc]

Re: Bro Haut vs Oil part 2

Every time BIG OIL want's to build a refinery, the socialists raise a stink, and kill it. Isn't your electricity bill controlled by BIG UTILITIES? Always guaranteed a % profit. ( I think you confused Sarantis, buy putting political statements in a mech forum).

Maybe, maybe not, but BIG OIL likes to hide behind that premise because it suits their agenda just fine......
At least public utilities have to ask for a rate increase.....
As far as Sarantis, I've helped him alot, & he will get over my joke....
I guess it loses something in translation......​

 

[Coors]

Re: Bro Haut vs Oil part 2

Translation, yep, lol. But they ask, and they ALWAYS get it.

 

[treedancer]

Re: Bro Haut vs Oil part 2

Quote imported coors

Every time BIG OIL want's to build a refinery, the socialists raise a stink, and kill it.


According to the link that Ken supplied, the oil companies seem to think that it would be too expensive to build more refineries.





<<He said some sections of the country, such as New England, could stand to see another refinery built, but he also doubted whether adding to refining capacity was a smart business decision.


"As a refiner, you're committing a couple of billion dollars, and the government's passing mandates [that are going to] reduce gasoline demand. You're going to be thoughtful of that," he said.>>


http://money.cnn.com/2007/05/10/news/economy/lower_gas_prices/index.htm?postversion=2007051308

And using a link, within the link, that Ken so kindly provided, and stated that it was in his opinion unbiased.


Exxon Mobil was the most profitable company last year by far, raking in $39.5 billion.


I guess there right, it would take about two and a half weeks profit too build a refinery. I guess it is rather expensive isn’t’ it?

 

[bruceb58]

Re: Bro Haut vs Oil part 2

Believe it or not, the oil companies invest in ways to make the refineries that they have more efficient and produce more output. It is cheaper for them to do this and get a greater return on their investment than build another refinery. Part of the problem with building a new refinery is how to get the oil there! Not many places want oil lines running through their backyards or have tankers lined up off their coasts.

My friend is a chemical engineer that works for Chevron. His current project is designing a new coker that can more easily refine the type of oil that Venezuela and other countries sell. This not only allows them to reduce the oil cost because the Venezualan oil is cheaper but also allows them to refine it faster.

 

[ZmOz]

Re: Bro Haut vs Oil part 2

What would stop them from manipulating the supply, there is no law on having to refine excessive quantities of crude.
Build the refinery and keep production just below demand, the cost of a new refinery would be another reason for a price increase.

What about when there's an "accident" and all the sudden they have to shut down a refinery? Since they don't have any extra capactiy now, they're forced to raise prices. But if they had extra capacity they weren't using, they wouldn't be able to raise the price so easily.

 

[Coors]

Re: Bro Haut vs Oil part 2

Ok, everybody park their vehicles; we are screwed. Pedal and weep?