Quote:
Originally posted by onetime2
The proclivity of the young in China to drive is a minute factor if it's any at all. The fact that China (and other emerging nations) are beginning to grow their economies has a far greater impact on the demand for oil. Power demands for this growth will become more of a factor on into the future.
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I agree that industrial demands are going to outstrip Asian consumer demand.
skysooner, at least one organization investigated the claim for lost profits as a reason for shutting down a California refinery. They found that the refinery was at least as profitable, if not moreso, than it has been in the past.
In this most recent case, at least, that argument isn't holding up. The organization is either seeking some type of injuction or requesting a government investigation--I don't remember. They are arguing the closure is against the agreement the oil company made when their merger was approved. Maybe you have some more information on this topic?
This story claims that, while upgrading costs are noted, Shell claimed "a big contributor to its decision to close the refinery is the decreasing supply of crude oil from the San Joaquin Valley."
--http://www.nacsonline.com/NR/exeres/00003342ushebobunnrzxpiv/NewsPosting.asp?NRMODE=Published&NRORIGINALURL=%2fNACS%2fNews%2fDaily_News_Archives%2fNovember2003%2fnd1117033%2ehtm&NRNODEGUID=%7b53D9DF75-C732-41A2-B9E4-BC58AD490FD5%7d&NRQUERYTERMINATOR=1&cookie%5Ftest=1
In an earlier piece on this topic, I read that this refinery is situated on or next to an oil field. The allegation was that these oil companies are shutting their refineries but retaining the rights to the oil reserves. So if someone chooses to re-open the refinery, they still won't have access to the oil next door.