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

To: TimF who wrote (340732)	6/18/2007 8:44:52 PM
From: Road Walker	Read Replies (1) \| Respond to of 1577107

re: What if we'd had this refinery's planned 85,000 barrels/day of gasoline online right now? That would represent a little less than 1% of total U.S. demand. In an environment like the present in which refining capacity may be the determining factor driving retail prices at the margin, with a short-run demand elasticity of 1/3, a 1% increase in quantity supplied would translate into a 3% reduction in price, or 9 cents per gallon using the current U.S. average retail price of $3.16 a gallon. LOL. It you think the oil industry couldn't have expanded refining capacity over the last 10 years you are deluding yourself. Why spend $billions to expand capacity when it will dramatically lower your average GP%? Spend more to make less? Actually, it would be smart business. Now they are caught in a death cycle. They will try to keep their margins up and create a "price umbrella" where alternates can come in and whip their ass. In addition the regulatory environment will shift from their massive tax breaks to favoring their competition; renew-ables and efficient energy clients. Tough shit; your marketplace at work. Smokestack greed vs. technology. Your guys are going down. It's not if, it's when.