Profits Likely Won't Mean New Oil Refineries

http://news.yahoo.com/s/ap/20051028/ap_on_bi_ge/oil_industry_profits_1;_ylt=Ajd8d.iqbwH8B6e9FiWqtP2AsnsA;_ylu=X3oDMTBiMW04NW9mBHNlYwMlJVRPUCUl

Profits Likely Won't Mean New Refineries
By BRAD FOSS, AP Business Writer
2 hours, 46 minutes ago

WASHINGTON - Don't expect the oil industry to boost fuel production merely to deflect criticism from Congress about soaring prices and profits.

Energy executives and analysts insist that in spite of the supply crunch that has kept oil above $50 a barrel for much of the year, demand and prices are still prone to ups and downs, so the industry should not rush to drill wells and expand refineries just because it is flush with cash.

"A surplus of supply is not good for the industry," Shell Oil Co. president John Hofmeister said in an interview on Friday. "Just as a surplus of demand is not good for industry. We strive for balance."

Hofmeister, speaking by phone from his corporate jet upon leaving Washington, said "we will continue to work as an industry to increase supplies to the American people." But he said Shell executives were still debating whether it makes economic sense to expand the capacity of refineries it owns jointly with Saudi Refining Inc.

why drill (spending $$$) for stuff they know they won't find?

why build more refineries (or tanker ships) to refine a decreasing supply of crude?

Peak oil is here.

oil production? (as if I didn't already know)

EPA regulations prevent the oil industry from building new refineries, now they aren't going to build them because it would cause a surplus. I heard a report recently that the Saudis wanted to build a refinery in this country and were refused permission. Another thing if they can't build a refinery in the US, why not build one next door in Mexico. Hmmmmm?

I heard an oil industry expert on CNBC recently say that only one company has even applied for a new refinery in the gulf within the last several years. They got permission and approval but never went ahead to build it. Only reason he know of was that there was no reason for them to invest so much money on a new refinery that would only raise supply and lower the price when they were already poised to make so much with the rising cost of oil without any new construction costs.

the the oil companies profits claiming they will take that money and build more refineries. He claimed they have been hurting for money for 18 years and the same old argument that they can't build refineries because of the EPA. If that's the case why not build them in Mexico and bypass the EPA and get cheap labor.

if we would take care of the permitting. There were no takers then, but I've wondered whether the * decision to offer up federal properties, like military bases, for refineries was related to the Saudi offer.

The Saudis are currently producing all grades of crude, including a heavy, sour grade that they can't get rid of because so few refineries can turn the sulfurous goo into a significant amount of high value products like gasoline and diesel. Any additional Saudi output likely will be of the same grade.

It would greatly benefit the Saudis if the largest importer of crude were able to refine its hard to sell product now and in the future.

bought Montgemery Wards!

the reason that they won't build refineries (and haven't since the 70's) is because they know that supplies are going to be dwindling over the next decade or two.

NO recovery money?

look like a great idea.

No need for alternative energy, which will remain "obsolete".

That's YOUR future, folks.