Originally Posted by
Buck Rogers
I guess I am not clear in my questions, or just don't understand. Initially you painted oil companies as greedy because they weren't building new refineries. That is a pretty derisive label right out of the box. Does a corporation that works for the shareholders(capitalism), owe it to society to invest in strategies that lose them money? Does Delta need to upgrade their IT department because someone(you) think there are better ways?
I agree, refined petrochemicals are a national necessity. If the government stepped in to build refineries, that would solve the problem. Will the Biden administration prosecute this course of action? Capitalism will not solve this dilemma due to lead time. By the time one administration comes in and says, "Drill , baby, drill" a new administration is elected that touts, " Shut down fossil fuel".
Therein lies the conundrum to planning 10 year projects that need decades to pay off.
BTW....... I'm a self ascribed idiot that doesn't keep up with the daily in's and out's of oil, but does understand long-term implications of politics, regulations and common sense.
I mean, if the shoe fits. "Greed is good". Until it isn't. That's why we don't have an unregulated free market.
Since we haven't had a new refinery built in 50 years demonstrates this isn't simply a partisan issue. Let's face it, politicians on both sides of aisle are in the pocket of oil companies.
Nationalizing refining capacity was partially tongue-in-cheek. No surer way to screw something up then get the government involved. That doesn't mean proper legislation can't force their hand. Something along the lines of not approving any new oil leases unless new refining capacity is introduced. Say new oil field is going to produce x-millions of barrels, refining capacity needs be increased x%.
Our capacity is usually around 85-90%. Refineries need to come down for maintenance, to be reconfigured depending on what blends they are putting out/what's coming in. Plus we've had numerous refineries not come back on line since COVID or get taken out by hurricanes (or just blow up).