SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Joe NYC who wrote (225372)3/21/2005 7:52:28 AM
From: combjelly  Read Replies (1) of 1572637
 
"It does not matter that US refineries prefer the light sweet crude. Somebody can either build a refinery that likes this oil"

It does matter. Consider, no new refineries have been built in the US since 1970. There are many reasons for that, environmental regulations are only part. Siting, access to water and other infrastructural needs means that they are a huge investment. So that pretty much means that the only ones to build a refinery are the current oil companies, and they don't seem motivated for some reason.

So, okay, build the refinery somewhere else and import the refined product. That raises a lot of complexities, some of which have to do with the way gasoline is blended for the various markets and the costs and other problems of building gasoline terminals. Each one is a multi-billion dollar investment and take a lot of room. Most of the ports that can take a supertanker are too crowded to take more traffic, and parking the supertankers offshore and lightering them off is a dangerous activity.

But these are problems that can be solved and the costs allowed for. So here you are, with a stream of gasoline that is 20% or more cheaper than any domestic producer can produce. What do you think happens at that point? All of the domestic producers who haven't made the multi $10 billion investment you have will go out of business? Hardly. You will just have a tariff slapped on you...
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News