Quote:
Originally posted by cantdrv55
I'm guess I'm just appalled that the CEO would admit on TV that the reason they're not building more refineries is that there's no money in it. He wants us to fund the project under the guise that it'll be a win-win but, in reality, the savings we'll see at the pump will be diluted by the increase in taxes to pay for the new refineries. A tax benefit for Valero would mean a bigger tax burden for us all, no? The money's got to come from somewhere.
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WTF?
Why would a business go into business to lose money? Why would a business invest into area A, if they can invest into area B where they spend less and get more return on investment?
The reality is this: The environmental requirements to build a "new" refinery are such that it cost a lot of money which will not produce the required ROI. In my company, if we are not making 30% margin on a product, it will usually be worked on until we do, or we will probably drop the product. If I can't show a 15% per year ROI on capital sprent, my company will not invest the money.
What I don't understand is this: if the refineries are the issue, why not build the refineries at sea and bring the finished product into the US?