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Politics : Formerly About Advanced Micro Devices
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To: TimF who wrote (613153)5/27/2011 1:10:14 PM
From: combjelly  Read Replies (1) of 1575713
 
"They might instead choose to sell more at a somewhat lower end price, or make some other change."

What changes would that be?

Do you even know? You clearly have minimal knowledge of the industry, you demonstrate that all the time.

The market for oil products is production limited for the most part. Refineries are huge, expensive facilities with next to zero labor costs in this day and age. Oil products are commodities, and low margin ones at that. So they take a very long time to amortize out, like decades, even at near 100% utilization. Which is a big reason why they just recently built the first refinery in decades in this country. The problem from the oil companies viewpoint is that they know we are approaching peak oil, if we aren't there already. Which build a new facility if you aren't sure that you can keep it utilized until you pay it off, much less make a profit?

Surely even you can fit that into your theories...
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