we don't have the refining capacity for all that oil anyway... so when they say short term... they mean it will take years before this will have a positive effect on pricing anyway. This is a wedge issue that is meaningless.
WELL, HEREIN LIES PART OF THE PROBLEM i've been talking about for a few years now.
oil companies, and power companies, seem to do the same thing. they get paid...sometimes a fair price......for the services they render. no one can possibly have a problem with that. they make a profit too. again, no possible problems. that's what we're all in business for.
the problem, is that they seem to never invest in expanding their capacity, or improving their services with some of those profits. had the oil companies been looking to the future, they'd have seen that they may want to add a refinery or two. same for the power companies.
they more than had the means to do it all along. now that we/they're in this crunch, all anyone can do is to say it won't do any good now.
so it's obvious, they STILL don;t look down the road. what about 10 years from now when the refinery is producing..and more effeciently than the old ones? or that new power plant that's preventing the rolling blackouts?
sometimes it makes ya wonder how the deciding powers in these companies got to their positions as it is.
top it off with the fact that investing 10 years ago would have increased todays profits for them.
