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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (286167)	5/2/2006 7:21:11 PM
From: tejek	Respond to of 1570679

Maybe. But that isn't the real constraint. The real constraint is the companies don't want to expand their refineries. Why not, you ask? The reason is peak oil. While we likely aren't there at the moment, we will be before the 30 or so year amortorization that you need for a refinery is up. If you can't get the supply to run a refinery at 100%, 24/7, you are losing money. We haven't built a new refinery in this country for decades. The simple reason is that it isn't cost effective. Environmental reasons are just a factor, and not the biggest. Likewise labor. The biggest factor is risk. Is consumption going to go up or down? Conservation and other factors are unknowns. Sure, as the present administration shows, politicians can be bought. But they can't be bought reliably for very long. And the majors have a long horizon. Much longer than election cycles. They have to. Yup. And any growth in capacity has come from small additions to existing facilities and not new contruction. I doubt we will see a new refinery built from scratch ever again.