Quote:
Originally Posted by Jim Richards
maybe 
Wouldn't the strike lead to a bump in gas prices that opens up an opportunity for the oil companies to ramp up their refineries and drive you indies out of business?
daepp?  |
Not really. Valero is non-union in So Cal so they would keep running and make more money.
Tesoro's contract is good until April so if BP closes down in the next few weeks, Tesoro would see increased profits until April. If Tesoro's employees go on strike they will try to keep it running with salaried personnel. That's dangerous trying to run a refinery with 1/3 of the manpower it normally takes. Really dangerous.
Alon is another indy in So Cal but both of it's refineries are already shut down temporarily due to low margins.
If the bigger companies wanted to drive the independents out of business they'd be ramping up current production as much as possible to drive the price down even lower but they are cutting back just like everyone else. They don't like losing money on refining either.
Unfortunately in reality
everyone loses if they go on strike.
Joe Public pays more money for gas and diesel.
The shareholders of the companies don't earn as much on their investment.
The oil workers lose too, because it will take them many years to recoup the money they lose from being on strike, and if they get more money there will be additional layoffs so some of them will be out of work. In case they haven't noticed, not very many companies are hiring right now.
No one wins if they strike, no one.