Re: STAGED OIL CRISIS



gtski wrote:

wb wrote:

They closed 50 old refineries knowing that
eventually lack of fuel availability will produce a
fuel crisis and cost increases due to demands, and souring profits.


They..??? Who specifically did this...??? 50 *old* refineries..???
Speaking of which, if you know anything about refineries, how long does a "cracker" last..??? And how much to replace one..???



Here's some information taken right from the Department of Energy's website.

(http://www.eia.doe.gov/emeu/cabs/usa.html)

In particular, read the second paragraph:

"Other mergers and acquisitions in the past few years include: the September 2002 purchase of Pennzoil-Quaker State Co. by Shell Oil Co.; the August 2002 merger of Phillips Petroleum and Conoco Inc. in a $15.2 billion transaction (creating ConocoPhillips); the January 2001 purchase by Russia's Lukoil of Getty Petroleum Marketing for $71 million (in late September 2004, ConocoPhillips announced that it was seeking to acquire a 20% stake in Lukoil); and the 1999 merger between Exxon and Mobil for $81 billion.

However, due to low profitability in the refining/marketing line of business, U.S. integrated major energy companies began a process during the 1990s of selective refining/marketing divestiture, and numerous U.S. refineries were shut down. Among independent refiners, growth largely has been concentrated in the following group of companies -- Citgo/PDV America, Diamond Shamrock (merged with Ultramar during 1996, creating Ultramar Diamond Shamrock), Koch Industries, Premcor (formerly known as Clark Refining and Marketing), Tesoro Petroleum, and Valero Energy. In May 2001, Valero agreed to acquire Ultramar Diamond Shamrock for $6 billion. Another company, Tosco Corporation, was purchased by Phillips Petroleum for $7.5 billion in September 2001, creating the second largest refining group in the United States, behind ExxonMobil. "


I think most will agree that what they were saying is...profits aren't high enough, but if we close a few refineries, we can change that.

And, lo and behold....I'm sure everyone here has heard the news about the record profits they're now making, eh? Are they adding refining capacity that will bring those profits down?

What....are you kidding?!?!?!

You think GWB and his buddies are going to do anything to force them?

What.....are you kidding?!?!?

We're getting screwed folks....from both sides.

Mike


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