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Originally Posted by aklim
...Another problem is there is little incentive for the companies to build bigger refineries. Someone show me a reason why they would. I wouldn't. If the supply is limited and the demand goes up, I make more money. Why would I want to cut my own throat by building a bigger refinery just to lower the price?
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While I am not an economist, my guess is that if they could add 25% to their refining capacity, and the price only went down 15%, they would make money. I don't have the numbers, but I'm sure the oil companies do.
I understand a big problem is it takes so long to get a refinery permitted and built... because nobody want 'em in
their backyard...
