I'm not being snarky at you. It's that I abhor these criminals....
Oil company refrain[/lie]: "All we make is a small fixed percentage. We buy at market prices and process oil."
Simple math: if oil is $50 per barrel and at the end of the day an oil company makes $10 in profit from the processing and sale of that barrel's related products, then if oil is $100 per barrel, the company makes $20 in profit.
The conclusion no one on the Free Market Theory side wants to face: if an oil company can make more money when the price of oil is high, they do NOT want to do anything that will push oil (nor gas and other derived products) prices down. Since they own the refineries, more refineries, as you state, could help relieve stress in the system and lead to lower prices.
Lower prices * smaller raw profit tallies = no new refineries.
Read the Article at HuffingtonPost
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