Here's good news: the oil companies refineries are openly fucking us once again by deliberately ratcheting down refining capacity in order to maximize earnings, and inflate gasoline prices. I have the strong suspicion that the new Congress will not allow this and will take steps to nationalize the oil companies, or at the very least demand that the vertical integration of the companies (exploration, drilling, transportation, refining, and finally selling their products all under the same corporation) cease.
2 comments:
Howard,
Cushing is full. Tankers are being used for storage right now. Refineries are ramping down and laying people off because demand has dropped so dramatically and inventories are soaring. There's nowhere to put the stuff. Sounds more like business rationalization to me.
MC
The refineries have been manipulating output for years and years. I was an active energy trader for nearly nine years and whenever there is a squeeze they just partially shut down a refinery here and there. There are no free markets anywhere and you better face that. The oil sitting in tankers? Come on, they will finally have to dump the stuff and prices will drop further.
Post a Comment