>>Do you believe that it would reduce an oil companies costs if it were to build a new refinery? (Including the cost of building it).
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>In the traditional "capitalist" scheme it wouldn't reduce their "costs" BUT they could make more money by selling more product. That is the general basis for any new capital investment in any business.
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So building a refinery would increase production for that given company? Would the average cost (their cost) per gallon be higher? Or lower?

How would this company who built this refinery sell more product than they were before?