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To: Rick_Michael; Fiddlstix
They've been doing this for some time. Every time there talk about alternatives they start pumping out more.

This is not pumping any additional oil. This is taking the oil they normally sell and refining it. Then the refined product is sold at a higher value.

31 posted on 02/15/2006 8:39:31 AM PST by thackney (life is fragile, handle with prayer)
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To: thackney
This is taking the oil they normally sell and refining it. Then the refined product is sold at a higher value.

All the more evidence for Peak Oil.

Crude oil production is probably 10-100 times more profitable than refining. If you have plenty of crude oil, it makes no sense to refine it (beyond whatever amount your nation uses), since the resources invested for refining would be much better spent in getting the oil out of the ground.

On the other hand, if your crude production is peaking, then it makes sense to diversify into less profitable ventures such as refining.

49 posted on 02/15/2006 7:56:02 PM PST by Mulder (“The spirit of resistance is so valuable, that I wish it to be always kept alive" Thomas Jefferson)
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