The percentage of global oil production represented by OPEC has fallen over the long term, and will likely continue to fall over th next 20 years.
A good primer can be had here.
http://tutor2u.net/economics/revisio...rkets-oil.html
That isn't my opinion.
Basic economics and the data I posted are all readily findable.
Find anything factually incorrect. Go on.
The percentage of global oil production represented by OPEC has fallen over the long term, and will likely continue to fall over th next 20 years.
A good primer can be had here.
http://tutor2u.net/economics/revisio...rkets-oil.html
And if you lower the supply of say, refined gasoline by shutting down less profitable refineries -- prices and profits can go up.
Also profits can be maximized by shipping prodict to the market that pays the most.
This certainly seems to be the easier route for the oil companies, since that's what they have actually done.
If you can prove to me that several oil companies would actively seek an oil and gas glut in this country in an attempt to undercut compe ion, I would accept every argument the Heritage Foundation vomits up.
The problem with your theory is that one company shutting a refinery just reduces that one company's market share and profit by the output of that refinery. There are a lot of refineries owned by a lot of different companies.
Are you claiming some kind of conspiracy where certain companies "take one for team" and close refineries (losing money in the process) to keep retail prices up for all the companies?
Closing (gasoline) refineries ups the "team" profits since intentional supply restriction ups the revenues for the team, including for the player whose other refineries now sell at higher prices.
I get it. Boutons is in the "oil company conspiracy" camp. Chump? You too? Your previous post certainly seemed to suggest that.
Oh, and just to confuse the issue with facts, here is a list of all the refineries/refiners in the US.
http://www.eia.gov/neic/rankings/refineries.htm
Who said they lose money by shutting down those refineries?
The companies claimed the exact opposite.
So they DIDN'T close the refineries in order to drive up the price of gasoline for everyone.
Thank you.
So you're going to pretend that shutting down refineries doesn't drive up the price of gasoline for everyone now?
That's ing pathetic, CC. You've been a pussy before, but this is a new low.
Thank you for showing your true colors and agreeing that the oil companies have no incentive to drive their prices down.
Do your homework Chump. There is a glut of worldwide refining capacity. The problem with these Northeast refineries is that they aren't set up to use the cheaper dirty crude and they can't meet impending EPA regulations. We aren't building new refineries in the US. The older US refineries can't compete with the new refineries being built in India, China, and the Middle East.
So you actually believe in Boutons conspiracy theory?
Do your homework, CC. There are no new refineries being built here because they simply aren't needed for the purposes of the oil companies -- unless they are exporting the refined products to other markets outside the US.
lol Chump and Boutons conspiracy theories.
Who said it had to be a conspiracy? It's a simple business plan.
lol CC and his attempted complete denial of supply and demand.
I totally get supply and demand. It was YOURS and BOUTONS claim they shut refineries to drive up prices.
You totally ignored the fact that the old refineries weren't compe ive, couldn't use cheaper and dirtier oil, and couldn't meet impending EPA regulations.
Ah, so you can't read what I wrote either.
Are you playing stupid because you realized you're wrong or are you just really stupid?
Looks pretty clear to me, Boutons.
Yes, it's clear that you didn't think refineries were shutting down or their effect on prices so you made the conspiracy straw man because you're embarrassed by your own ignorance.
Sorry I made you look bad, but you should really read at least one article on the topic being discussed before you make an idiot of yourself again.
@ chump and boutons conspiracy theory and chumps backup beeper going off.
If you honestly think that the evil oil companies are shutting down refineries to drive up the price of gasoline don't you think that the Justice Department would be looking into it? You do know that the price of gas is a real problem for Obama politically right? You do know he's flying all over the country for the next three days doing photo ops at oil and gas installations trying to show how concerned he is with gas prices and how he's pro oil/gas production, right?
at Bouchump...
@ chump and boutons conspiracy theory and chumps backup beeper going off.
If you honestly think that the evil oil companies are shutting down refineries to drive up the price of gasoline don't you think that the Justice Department would be looking into it? You do know that the price of gas is a real problem for Obama politically right? You do know he's flying all over the country for the next three days doing photo ops at oil and gas installations trying to show how concerned he is with gas prices and how he's pro oil/gas production, right?
at Bouchump...
doubling down on the conspiracy straw man isn't going to distract from your initial ignorance here.
No conspiracy necessary. It's a simple business move.
It was your original claim Bouchump...
And BTW "less profitable" means they were profitable. Your specific claim was they were shutting down money making refineries to drive up the price of product and make MORE money.
It's right there in black and white.
If I may jump in here:
Yes refineries are being closed down that are unprofitable. Smaller facilities and so forth.
The US has actually overall ADDED capacity, because of new technology and expansions at existing facilities.
The shut downs of unprofitable refineries are no different than a retailer shutting down unprofitable stores. In this, it does limit capacity somewhat.
I get this from a read of Exxon's annual statement a while back as they are talking about adding the equivalent of one new refinery per year by simply making existing facilities better, and what I remember of readings since then.
They aren't doing this in a concerted effort to keep prices higher, and this actually keeps prices lower, because loss-leaders get taken off the books.
Hope this helps.
Also respectfully:
Go back an re-read a bit I think you both are missing what the other says to some degree.
That's the oil companies' claim, dumbass. Some that are shut down are unprofitable, some are simply less profitable. Strangely enough, each refinery is different. You didn't think any refinery was being shut down for any reason.
My specific claim was that shutting down refineries for any reason drives the price of gas up. Profitability is the reason oil companies are using now.
Take it up with them.
It was right there in black and white.
*beep*beep*beep*beep* goes the backup buzzer
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