Shaun Kenney | Politics and Religion in Virginia's Public Square

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Tuesday, June 01, 2004 Pain at the pumps provides boost for refineries And the boost for refineries is a pain in my. . . wallet. Jay Saunders, an energy analyst at Deutsche Bank, said that US refineries were unlikely to spend more capital because they had earmarked $20bn (£10.9bn) to upgrade plants for stricter emissions laws, leaving them with little money to expand capacity. Mr Saunders said: "It's going to cost more to make gasoline. They will want to wait a few years to see their money back before spending more funds." Douglas Terreson, an energy analyst at Morgan Stanley, said the oil companies' conservative view of oil prices was another factor determining future capacity growth. "We have had oil prices at $25-$30 a barrel for five years and it is only recently that the majors have shifted their rate of return to one based on $20 instead of $16. If it has taken them that long to shift, I can't see them moving up again for a long time," said Mr Terreson. "It is going to take a dramatic slowdown in demand or a recession before this golden period for refiners comes to an end." Good news on a Tuesday morning, yes? Note the emphasis on the impact environmental controls are having on new refinery construction. Not a good sign. . . and given the profit margins for oil companies, not something anyone will feel the need to correct anytime soon. posted by Shaun Kenney \| 6/01/2004 12:41:00 AM \| 0 comments 0 Comments: Post a Comment Home
	RedStormPAC $ About ShaunKenney.com is one of Virginia's oldest political blogs, focusing on the role of religion and politics in public life. Shaun Kenney, 30, lives in Fluvanna County, Virginia. Contact E-mail RSS/Atom Feed Links Bacon's Rebellion Deo Vindice First Things Google News Hiron's Blog Instapundit J's Notes Jaded JD Jefferson Mammoth Republitarian Save the GOP VCAP Virginia Centrist Virginia Club for Growth Virginia Progressive Virginia Virtucon Vivian J. Paige Waldo Jaquith The Jeffersoniad China Freedom Blog Alliance China e-Lobby Democratic China One Free Korea ShaunKenney.com Previous Posts Payback for GOP Mavericks? Splendidly slanted r... 'Youngest planet' flouts theory of formation Mo... Pope Warns Americans Are In Danger Of A "Soulless ... Hey, Hey, 16k! Hey, hey, 16k, What does that g... To Saddam's Prisioners, Abu Grahib Abuse Seems 'a ... Conciliating Hatred A great article in the June... Radio Paradise Slowly I am converting the world... 1st District GOP Convention Spent the majority ... Neveron sucks I'm a reasonably big Battletech f... Nanny's ObituaryAnn Abla Street, 72, of Fredericks... Search VA Blogs BlogNetNews.com	JEFFERSONIAD POLL: Whom do you support for Virginia Attorney General? 1) John Brownlee 2) Ken Cuccinelli View Results Recent Music Archives March 2002 April 2002 May 2002 June 2002 July 2002 August 2002 September 2002 October 2002 November 2002 December 2002 January 2003 February 2003 March 2003 April 2003 May 2003 June 2003 July 2003 August 2003 September 2003 October 2003 November 2003 December 2003 January 2004 February 2004 March 2004 April 2004 May 2004 June 2004 July 2004 August 2004 September 2004 October 2004 November 2004 December 2004 January 2005 February 2005 June 2005 July 2005 August 2005 September 2005 October 2005 November 2005 December 2005 January 2006 February 2006 March 2006 April 2006 May 2006 June 2006 July 2006 August 2006 September 2006 October 2006 November 2006 December 2006 January 2007 February 2007 April 2007 June 2007 July 2007 August 2007 September 2007 October 2007 November 2007 December 2007 January 2008 February 2008 March 2008 April 2008 May 2008 June 2008 July 2008