"TaxSrv" wrote in message
...
Some are contending that enviornmental regulations are "preventing"
the
constructions of new refineries.

Mike
MU-2


It's all about money. Environmental regulation costs, citizen lawsuits,
cost to just build. Meanwhile, they make money on tight supplies, and
the industry now is very happy. With the concentration in this industry
among a few big players, no one is motivated to make the first move,
which will put them at a competitive disadvantage, I guess. Make sense?

Fred F.


No, it doesn't make much sense. The cost of enviornmental regulations are
already in their costs and refining margins are high (including the costs of
compliance). Most refiners are looking to add capacity over the next few
years although with expansions not "new" refineries. The idea that nobody is
motivated to make the first move because there are few players is silly.
Capital investment decisions are made based on the projected return.

Mike
MU-2