Originally Posted by
texavia
Ever notice Wall Street types are always talking about what oil is going to; but, oil companies don't because they know the price forecast is always wrong. Oil companies also know refining is cyclical, it loses as often as it wins and basicly its the worst part of the biz to be in.
In any case, we'll all know in time.
In the long run, you may be right. Oil for the past 4+ years has been a vehicle for speculation (gambling) due to etf's.
My take; the refinery pays for itself in 1 year - after that it doesn't matter.
It is another form of vertical integration. It is no different than paying a lawn service $1000/year to mow your grass, then going out to buy your own push mower for $300 and doing it yourself.