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By Pxtl (registered) - website | Posted April 24, 2012 at 12:03:09 in reply to Comment 76167
We've been hearing about "refinement capacity" shortages for almost a decade.
To me, that speaks louder than anything that the gasoline industry believes in peak oil. If there were no peak oil, building new refineries would be a license to print money - so there's this terrible shortage of refining and surplus of oil, time to cash in and fill the gap, right? Get your chunk of this pie.
Unless you don't expect that gap to still exist in a decade or so. Then you don't want to build a refinery - they take a long time to pay for themselves. It would suck to build a refinery, get a few years of productivity, then have to start closing down shifts because there isn't enough raw materials available to keep it running 24/7 while you're still a hundred million in the hole for start-up costs.
Comment edited by Pxtl on 2012-04-24 12:03:26
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