"Jay Honeck" wrote in message
news:duXRe.323227$xm3.46758@attbi_s21...
As I understand it, refining is actually a pretty low-margin business,
which tends to discourage investing in one iota more capacity than you
can sell tomorrow.

Right -- and why do you suppose that is? It certainly didn't used to
be.

Let's see. The price of crude is sky high. Oil company profits are sky
high. Yet oil refining is a low-margin business. Hmm.... What's going
on here?

Can anyone say "Regulatory Insanity"? That industry can't fart without
filling out reams of EPA paperwork, in triplicate. And each one of those
forms is filled out by a very highly paid person -- that you and I are
directly subsidizing at the pump.


Jay, I enjoy your trip and event reports but keep your job as an inkeeper.
You won't make it as a securities analyst. The regulatory paperwork burden
isn't even a rounding error to the energy industry.



So, in my mind the high price of gas is the best way to spur
conservation. The government could mandate things but all of us as
individuals will figure out better and cheaper ways on our own. I would
not support a tax increase however, because I don't support increasing
the size of government, period.

True enough. But what a stupid time to have this happen, when there's a
real surplus of oil on the market.
--

Yes and very true. We had the prefect opportunity five years ago when the
CAFE standards were scheduled for an increase but our brilliant new
president decided not of implement them. If he had, about 80% of the US
vehicle fleet would be getting a couple more MPG which, as it turns out,
would exactly match the reduced gasoline output from Katrina.


Mike
MU-2