Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: layman

Why would oil companies invest in new resources when refining is maxed out? Or is that just a myth?


92 posted on 08/17/2005 3:37:37 PM PDT by Normal4me
[ Post Reply | Private Reply | To 82 | View Replies ]


To: Normal4me
Why would oil companies invest in new resources when refining is maxed out?

Well, much of the investment is in fact in refining capacity, and frankly I don't know what their return on investment is. I could find out easily enough by taking a look at their annual report, but my only point was that absolute numbers, like seven BILLION, serve only to upset the public unless the return on investment is also known. If I can invest $100,000 in a security paying six percent with virtually no risk, like a tax free municipal bond, why should I be upset if an investor in a high risk enterprise like oil makes four percent return on his investment?

107 posted on 08/17/2005 4:54:58 PM PDT by layman (Card Carrying Infidel)
[ Post Reply | Private Reply | To 92 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson