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The Water Cooler
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If You Are PLanning To Fill The Gas Tank....
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<blockquote data-quote="Shadowrider" data-source="post: 2838341" data-attributes="member: 3099"><p>That's the problem with about 98.7% of the world's population.</p><p></p><p>tR, it's a mind blowingly complex undertaking to understand the intricacies of energy pricing. Each company has it's own cost structure and I'll just give you a simple example. Take a well at any given spot in the world. Then take another well 15 miles from that one. The oil produced out of each well can require totally different requirements to refine it. The products you can make out of one well may not even be possible from the oil out of the other. That's an extreme example but you get the gist if you are talking an 8% - 10% profit margin, yes that's pretty close to what they make in good times. </p><p></p><p>One of the reasons we have issues is caused solely by our government and it's meddling. Most of our refineries are set up for heavy sour oil while our shale oil is of the light sweet variety. Go see whats involved in getting all the EPA permits for a new refinery and you'll see why we haven't built a new one since the '70s. That's just one of 40,000 things oil companies have to deal with. </p><p></p><p>If I were thinking of starting a brand new oil company, once I got into the real study of all that's required, I'd blow it off so fast that we don't have the technology to measure the time increment, it would be that friggin fast.</p></blockquote><p></p>
[QUOTE="Shadowrider, post: 2838341, member: 3099"] That's the problem with about 98.7% of the world's population. tR, it's a mind blowingly complex undertaking to understand the intricacies of energy pricing. Each company has it's own cost structure and I'll just give you a simple example. Take a well at any given spot in the world. Then take another well 15 miles from that one. The oil produced out of each well can require totally different requirements to refine it. The products you can make out of one well may not even be possible from the oil out of the other. That's an extreme example but you get the gist if you are talking an 8% - 10% profit margin, yes that's pretty close to what they make in good times. One of the reasons we have issues is caused solely by our government and it's meddling. Most of our refineries are set up for heavy sour oil while our shale oil is of the light sweet variety. Go see whats involved in getting all the EPA permits for a new refinery and you'll see why we haven't built a new one since the '70s. That's just one of 40,000 things oil companies have to deal with. If I were thinking of starting a brand new oil company, once I got into the real study of all that's required, I'd blow it off so fast that we don't have the technology to measure the time increment, it would be that friggin fast. [/QUOTE]
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