Down with the evil Gas lords III: Kaak's Redemption

[Kaak]

and yet, he keeps coming back...

[KrazyHorse]

Stop talking about yourself in the third person, you funny little man.

[Kidlicious]

Originally posted by Flubber
If a very good project was available SOMEONE would have built it.

No. There were very good projects. They didn't build them.

[Zkribbler]

Originally posted by JohnT
Kid doesn't believe in the time value of money.

Well that's just plain silly. It was Einstein who proved that Time = Money.

******************

Wasn't it KrazyHorse who pointed out that there are pipelines running all over the U.S.? Well, if U.S. ecology regulations are bogging down the building of new refineries, why doesn't someone build a refinery in Mexico right across the border from the U.S., hook into the U.S. system, and pump gigagallons of gasoline into the U.S. economy?

[Flubber]

Originally posted by Kidicious


No. There were very good projects. They didn't build them.

z

Name one with the details of what made it a very good project

[Zkribbler]

Originally posted by Flubber
Name one with the details of what made it a very good project

Name: Refinery construction.
Details: Worldwide increased demand for gasoline + record price for gasoline.

[Flubber]

Originally posted by Zkribbler


Name: Refinery construction.
Details: Worldwide increased demand for gasoline + record price for gasoline.

Catch up-- To be a even a good project the PROJECTIONS at the time they would have had to have STARTED must be "good" (meaning a risk weighted return that meets or beats other possible projects requiring similar amounts of capital and expertise)

Since building a refinery is equally available to EVERYONE who can raise the capital , I put forth the idea that if a "very good" project ( ie better than the criteria for a "good" project) were available, someone would have done it.

[Spiffor]

I have read an interesting article (from communist Newspaper l'Humanité, which doesn't have any sympathy for the majors), in which the cost of gas at the pump is laid out (French prices for one litre):

Crude oil: 0.38€
Refining: 0.05€
Transportation + retail: 0.05€
Taxes: 0.82€

Indeed, refining represents very little in the cost of gas. I expected refining to be a more component of the price. I have much less of a quibble with the relationship between gas price and oil price now.

[Lawrence of Arabia]

taxes make up more than 1/2 of the price you pay - plus you pay for every kilometer you drive on the highway.

[Zkribbler]

Originally posted by Flubber
Since building a refinery is equally available to EVERYONE who can raise the capital , I put forth the idea that if a "very good" project ( ie better than the criteria for a "good" project) were available, someone would have done it.

There's a old saying that, according to the laws of economics, it is impossible to find a $20 bill laying in the street because if it were really there, someone would have already picked it up.

[Flubber]

Originally posted by Zkribbler


There's a old saying that, according to the laws of economics, it is impossible to find a $20 bill laying in the street because if it were really there, someone would have already picked it up.

Actually thats a good little story. Fundamentally its true so if a $20 has not been picked up in the last 30 years it means

1. the $20 was never there to be picked up OR
2. you are the first to see the $20

With respect to refinery projects, case 1 is that there was never an economic opportunity while case 2 is that the opportunity was never seen. I reject the implicit case 3 that the $20 was seen by dozens of people but no one bothered to pick it up

[Flubber]

Originally posted by Spiffor

Indeed, refining represents very little in the cost of gas. I expected refining to be a more component of the price. I have much less of a quibble with the relationship between gas price and oil price now.

Its amazing what learning some facts can do. I'm happy you found a source that you trusted to tell you what has been said in these threads numerous times

[Kidlicious]

Originally posted by Flubber
z

Name one with the details of what made it a very good project

It's a market failure. More refineries are needed.

[Zkribbler]

Originally posted by Flubber


Actually thats a good little story. Fundamentally its true so if a $20 has not been picked up in the last 30 years it means

1. the $20 was never there to be picked up OR
2. you are the first to see the $20

With respect to refinery projects, case 1 is that there was never an economic opportunity while case 2 is that the opportunity was never seen. I reject the implicit case 3 that the $20 was seen by dozens of people but no one bothered to pick it up

How 'bout Case 3(a): Lots of people saw the $20, but they reasoned the could become even richer by essacerbating a shortage by not picking it up.

[Imran Siddiqui]

Originally posted by Zkribbler
How 'bout Case 3(a): Lots of people saw the $20, but they reasoned the could become even richer by essacerbating a shortage by not picking it up.

Now where is my tinfoil hat smily?