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Producers Cutting Out The Middlemen…

  • Sun, Jun 12, 2011 - 08:14pm

    #56

    Poet

    Status Platinum Member (Offline)

    Joined: Jan 20 2009

    Posts: 976

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    Producers Cutting Out The Middlemen…

Damnthematrix

Thanks for sharing! I think most industry veterans – not mere gas station attendants – would agree with your man.

New Thoughts
I think also that producers will increasingly focus on building their own refineries and by-products manufacturies (tires, plastics, etc.) and ship just the final products (gasoline, diesel, jet fuel). Like Reliant’s giant Jamnagar refinery. Just imagine what would happen if Saudi Arabia didn’t ship crude anymore. Just refined products.

One of these days, maybe Australia and Brazil will rapidly ramp focus on refining and fabrication rather than expensively ship so much ore to other countries for value-added processing. Reducing bulk shipping and fuel  costs, while cutting out the middlemen to capture the vertical profits. Like how China has drastically restricted exports of rare earth elements.

Of course, I don’t know if how powers like the U.S. and China would respond, but it is interesting to consider.

Poet

[quote=Damnthematrix]

Hi Poet….

Strangely enough, MY white haired local gas station owner who has worked in the oil industry all his life is ABSOLUTELY on top of peak oil, and every time I fill up we have a good old chinwag about the latest developments.  He’s the one who told me that because it takes 13 years from the idea setting, to the designing and planning, permission applications, and then building of any new oil refinery, no more will be built because he reckons the authorities KNOW there will not be anywhere near enough oil to refine to warrant any investments…  And he told me he thinks many refineries will simply shut down due to lack of money for upkeep well before we actually run out of oil.

He was adamant that it might take one or two REALLY serious refinery fires, but that this scenario was inevitable.

But you’re right, someone like him is a one in a million standout!

Mike

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