Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (38937)	10/11/2005 2:03:16 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 116555

Read all three memos from 1995. Oil companies were desperate to reduce refining capacity and encourage any laws, such as clean air rules, which would limit gasoline supply. This is what I have been saying all along. I know, I worked there. Refining profit margins are now quite high but will decline when the Wars in Iraq and Afghanistan stop. Oil companies do not want to build new refineries. They will expand their existing refineries to meet long term demand, hopefully at a measured pace so as not to collapse refining margins again. Some wacko group, which is not connected to any actual oil company, has long wanted to build a refinery in Yuma Arizona. Supposedly they want to build a pipeline from Mexico to refine very sour crude. If you want to learn who their major shareholders are, I'd suggest you take a flight to Mexico City where they all live. If they ever make any progress, a few oil companies will put on the pressure to make things tough for them. * * * * * * * * * * * * * * * * * * * -- An internal 1996 memorandum from Mobil demonstrates the oil company's successful strategies to keep smaller refiner Powerine from reopening its California refinery. The document makes it clear that much of the hardships created by California's regulations governing refineries came at the urging of the major oil companies and not the environmental organizations blamed by the industry. The other alternative plan discussed in the event Powerine did open the refinery was "....buying all their avails and marketing it ourselves" to insure the lower price fuel didn't get into the market. consumerwatchdog.org -- An internal Chevron memo states; "A senior energy analyst at the recent API convention warned that if the US petroleum industry doesn't reduce its refining capacity it will never see any substantial increase in refinery margins." It then discussed how major refiners were closing down their refineries. consumerwatchdog.org -- The Texaco memo disclosed how the industry believed in the mid-1990s that "the most critical factor facing the refining industry on the West Coast is the surplus of refining capacity, and the surplus gasoline production capacity. (The same situation exists for the entire U.S. refining industry.) Supply significantly exceeds demand year-round. This results in very poor refinery margins and very poor refinery financial results. Significant events need to occur to assist in reducing supplies and/or increasing the demand for gasoline. One example of a significant event would be the elimination of mandates for oxygenate addition to gasoline. Given a choice, oxygenate usage would go down, and gasoline supplies would go down accordingly. (Much effort is being exerted to see this happen in the Pacific Northwest.)" As a result of such pressure, Washington State eliminated the ethanol mandate - requiring greater quantities of refined supply to fill the gasoline volume occupied by ethanol. consumerwatchdog.org .

To: patron_anejo_por_favor who wrote (38937)	10/11/2005 2:06:26 PM
From: Jack Colton	Respond to of 116555

Beaumont Cracks Oil and I don't care.

To: patron_anejo_por_favor who wrote (38937)	10/11/2005 2:24:01 PM
From: Knighty Tin	Read Replies (5) \| Respond to of 116555

The solution is right before our eyes. 1. Gas prices are near all time highs. 2. Many stations are no longer accepting credit cards. Ergo, gas stations have lots of cash. So, we should rob gas stations.