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Re: diesel fule shortage? o/t
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Posted by Matt from CT on August 10, 2006 at 10:15:32 from (68.118.198.252):
In Reply to: Re: diesel fule shortage? o/t posted by john in la on August 10, 2006 at 08:44:26:
The only reason there are shortages when refineries have to switch... Whether it's to ethanol instead of MTBE, from conventional to ultra low sulfur, from Diesel to No. 2 fuel oil... Is because the refineries have consolidated and closed "surplus" capacity...so their day to day operations return as much profits as possible. And hey, if they have to reduce supply and boost the price during switchovers and still make just as much money, life is good. Relatively few companies left in the refining business, so it's not like anyone is going to go out and build a refinery just to tip the apple cart of the cushy life right now. Although sometimes you get cut-throat competetion between only a handful of players...it's sure is a lot more common for competetion to exist where there is a bunch of players in the market and worried someone else will make a move, then what you have in telecommunications, oil, commodity grains, commodity meat today of a handful of dominant players just sitting easy knowing no one is going to challenge them.
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