xsfmed said:
Don't forget - there has not been a new refinery/gas cracker built in over 30 years.... therefore, we have a stable top end output model with a growing demand for the finished product - the only elasticity in this model is the pricing of raw material and demand. Of course end unit pricing increases with limited production and increased raw goods pricing - econ 101.
There was something on the news about that the other day. I wasn't really watching it, I just had the TV on and heard it from the other room and stopped what I was doing to listen. They were interviewing some guy and he said it would take
"6 years" to build a new refinery, and then it would take 10 years of production before it would turn a profit.
Also, nobody wants to build a refinery because of all the talk about moving away from oil and going to hydrogen etc, they don't want to wast money investing in something that could be obsolete in a few years.
Part of that makes sense, but it would not take 6 years to build a refinery (I'm pretty sure he said 6 years). Hell they just put up two oil drilling platforms along I-20 here in the last 6 months. We have a refinery here in my town, but it has been closed for years. Hell instead of building new ones, how about re-opening some of the closed ones.
Anyway, back to the topic. I paid $2.63 yesterday, at the Petro truck stop in Jackson, MS. Too bad I didn't fill up last week when it was $2.53. The Pilot across the street was showing $2.65, usually the Pilot is cheaper so I go there, this time Petro was cheaper. What is strange is after I filled up, when I left and got back on the highway, the Pilot's sign had changed to $2.71.