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Oil and the Small Businessman
Message
From
11/05/2007 17:40:33
 
 
To
11/05/2007 15:11:16
General information
Forum:
Politics
Category:
Other
Miscellaneous
Thread ID:
01224317
Message ID:
01224859
Views:
12
>>SNIP
SNIP
>
>Firstly, I would like to answer the part specifically related to the issue. I pointed that significant amount of gasoline are currently imported to explain that it creates direct link between currency fluctuations and gas price. For example, if gas is produced in Spain and then transported to US, and price in Euro is the same, it may still change if USD/Euro rates change. Next step would be to look at last year USD/Euro chart and make simple logical adjustment.
>In regard to refineries, it is very difficult to debate against conspiracy arguments (a-la big oil plotted to close refineries and they did it), so I can just give few facts. There were no refineries built in USA for last 30 years. In this period US Congress adopted numerous acts stiffening environmental standards in many cases specifically for this particular industry. Granted, every act contained a waiver allowing existing refineries to continue business largely undisturbed (jobs are always important). It created situation when new refinery would be immediately put in huge disadvantage competing against existing ones.
>In regard to morals. I was engaged in business for rather long time and I get used to consider myself as relatively honest. Imo, it would be unfair for me to consider other businesses inherently dishonest while reserving better definition for myself.
>Finally, I could talk about China for so long time that it would be too much for this message.

Yes, imported finished product would have price fluctuations. But that is of little concern to big oil because that cost is simply passed on to the consumer. And chances are near 100% that the gas imported is from another of their own refineries offshore.

That no refineries have been built in over 30 years is a red herring - the oil companies closed refineries in the same 30 years, dismantling some and moth-balling others. They also have upgraded many refineries in 30 years.
I understand that the moth-balled ones are done for the very purpose of not requiring environmental review to bere-opened.

Morals-wise I am talking of large corporations, not small businesses. Surely you saw yesterday the makers of Oxycontin being fined $600 MILLION for promoting the drug as non habit-forming when they knew otherwise. They knew from the start yet they did the promoting anyway. Why?... because they felt they might not get caught and they knew that no person could be jailed for the deed!
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