gas prices spiking in california
10-06-12, 11:24 AM
#61
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Location: CA
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Spot on. It is very easy to blame on oil company. But no one has any idea what is behind. You said it well. I work for eng co designing building refineries. It is not a easy investment. There are a lot of things, risks and too much money involve in this business. No new refinery in the US and all of them revamp , repair, all patch works are going on in the US while new refineries are popping up around the world. BP ran out of its cash reserve on one incident- that is a risk. Do u see that kind of risk on the world most valuable company, apple?. It takes a couple of years to design, engineering and another couple of years to build for let alone expansion. Totally new one, u can imagine yourself. It is not like tech company or like apple putting together and sell new one every two year. Even if u decide to invest today you won't see the revenue till 2-4 years and by that time gas price and oil may not be profittable anymore. Too much risk. Most of the big oil want to get out of the refining business in the US because of operation cost, tax and over regulation. They are asked to implement and comply new regulation on 40-50 year old facilities. It takes 4 to 8 weeks to restart the refinery once it is shut down. Do you really think any business wants to lose about a month or two sale just to get extra 20% out from customer? Yes it is very easy to blame on someone without looking or knowing the detail. I m not saying they are innocent. But we should get also get down to the bottom and find the root case than blaming one sector on almost anything. We still need it regardless of whatever politicians or environmentalists are saying so why not make it better, leaner, more flexiable, doable instead of seeing one sector of energy as evil and punishing it.
10-06-12, 11:41 AM
#62
Lexus Fanatic
When I was in high school, back in 1960, the town to our East, Pasadena, was known as “Stinkadena”, the odiferous properties of refining and petrochemical production were immediately obvious to everyone in Houston when the wind swung into the East. It was “Pasadena, where the air is greena”, and it was common in our neighborhood to say “I smell Pasadena.” when we had an East wind that usually indicated rain was on the way.
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