Quote:
Originally Posted by Shardik2SS
I'm well aware that refineries don't set the price of gas at the pump, but that doesn't change the fact that they're money hungry and greedy. I know for a FACT that two of the refineries in my area are profitable at the moment so maybe you should get your facts straight before assuming I don't know mine.  |
Actually the business is what it is. It cant, by definition be money hungry or greedy. They make their money because the market dictates the price. You want the price of gas to come down, ten reinstitute the trade restrictions that use to be in place. It used to be that only certain traders could trade in oil and they had to take physical ownership of said oil before reselling. This kept inept day traders and speculators from screwing with the cost of oil. Recently, the ExxonMobil CEO stated that oil should cost 50-60 a bbl. it doesn't because of rapid turn over and trading. The fact the ExxonMobil and shell and bp deal in such massive volumes is why they make so much money. Speaking of which, their profit margin for 2010 (2011 isn't available yet) was 9.75%. You know what googles and apples was? Try 25.69% and 23.95% respectively.
Additionally, due to contractual obligations with countries that grant access to their reserves and of various corporate laws keep oil companies from selling their oil to themselves. It must be sold on the open market for what err the going price is as determined by the actions above.
Additionally at the moment, product prices are lower than raw material prices causing most refineries to lose money. Now I don't know which two you know of but good for them. Anyone making a profit on the refining side is doing by precise energy monitoring and expense reduction while still meeting product qualities. Not to mention the sheer number of additional regulations that California grade fuels must meet so kudos to them. And the reason they complain about the extra expense is because that could run the project from profitable to not which jeaporadizes the entire project on which no one, even he contractors get paid.