Increased raw material and energy prices should reduce profit margins at the refinery level, yet they have been increasing for some reason.
Record failures at refineries raise gas prices
- Thread starter G-MAN
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The environmentalists are NOT stopping the construction of new refineries. Economics are. A construction and operating permit was issued in Arizona 2 and a half years ago to build a new refinery. But they can't find any investors. As a result, they haven't turned the first spade of dirt. If the environmentalist-haters want a new refinery, their chance is now. All they have to do is put up or shut up.
The refining industry doesn't need or want more capacity. They are making plenty of money with current facilities.
The refining industry doesn't need or want more capacity. They are making plenty of money with current facilities.
Same as electricity down here.
We are knocking on our current capacity limit. Generators are making record profits.
Everyone knows that if a new generator is built, prices will drop, so none of the current players will build new capacity, as their profits will tumble, and no-one new wants to invest because there's nothing for them when they do.
We are knocking on our current capacity limit. Generators are making record profits.
Everyone knows that if a new generator is built, prices will drop, so none of the current players will build new capacity, as their profits will tumble, and no-one new wants to invest because there's nothing for them when they do.
I wouldn't invest in a new refinery, and I think that anyone else who believes in peak oil wouldn't either. I would be willing to invest in electrical power generation though.
Keep an eye downunder.
State Govt just commissioned a report into 'lectricity...low and behold, the "independent" consultant recommended that the Govt sign themselves up to a $12B windfall, while removing the mandatory retail cap on prices.
I've invested a lot of my own energy in the system, might be worth investing money in my industry too.
Well in my area, Shell is looking into building a big new refinery of 250,000 bpd capacity. They bought options on land and are renewing them this year.
There is a shortage of refining capacity here in south west Ontario, but since Royal Dutch Shell bought us out earlier this year there could be other places they might want to build. One option is adding on to a Shell refinery in Port Arthur Texas. But we aren't anywhere near out of the running for this plant. The new plant would process crude from the oil sands in Alberta.
But if Shell doesn't build here, someone else will.
We have a Shell plant here but it's getting old (55) and it's small at 75,000 bpd.
There is a shortage of refining capacity here in south west Ontario, but since Royal Dutch Shell bought us out earlier this year there could be other places they might want to build. One option is adding on to a Shell refinery in Port Arthur Texas. But we aren't anywhere near out of the running for this plant. The new plant would process crude from the oil sands in Alberta.
But if Shell doesn't build here, someone else will.
We have a Shell plant here but it's getting old (55) and it's small at 75,000 bpd.
Bingo!
Kestas
Staff member
Gasoline prices here in Michigan are some of the highest in the nation. It's not because of taxes, but because of production and distribution. Because of this, Marathon in downriver Detroit, one of our only refineries in Michigan, will spend a lot of capital expanding its facilities to meet the local demand.
Isn't it funny how motor oil can go on sale for half price or less at times but it never seems to happen with gasoline...
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