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Pastimes : The California Energy Crisis - Information & Forum

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To: Ron who wrote (533)	6/14/2001 10:28:38 PM
From: Hawkmoon	Read Replies (2) of 1715

internal oil industry documents show that five years ago companies were looking for ways to cut refinery output to boost profits. Ron... Just like driving your car at higher speeds reduces your mileage, running refineries at full capacity requires additional process heat which reduces profitability. It also places additional wear and tear on the refinery which requires more maintenance. That's the only reason I could see them reducing production to boost profitability. And again, there was XOM, just last year operating with 3% margins. If there is manipulation of the price of fuel in order to boost their profitability higher than the rates they can draw from T-bills, I have to ask you why people are griping so much. I don't begrudge any business attempting to manage their operations to the extent that they are able to derive at least a 10% profit on their production. Btw, don't forget that they US government derives more money per gallon than do the oil companies. If you have anything to gripe at, gripe at the gas tax. Hawk

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