Originally Posted by
roadrunner
Tim I want to make a few comments I have listened to big oil take a beating on here long enough. Sorry this is long
First we can drill in Alaska and not in a pristine beautiful area but a barren waste land just at the edge of ANWAR and in the state of Montana and North Dakota. I don’t think you have to worry about destroying the environment by drilling on land been done for 110 years.
Second big oil makes 16 cents profit per gallon when gas is $4.00 a gallon 12 cents when it is $3.00 a gallon. Government taxes us 18 cents per gallon no matter what the price is and they drag the CEO of big oil before congress and put on a show for the American people.
States charge around 25 to 40 cents per gallon with Kentucky at only 22 cents
I know it sounds like I am connected to big oil but I have nothing to do in the oil industry other than I have a 401K which would own some stock in the mutual funds (I think).
I do live in a town that has a refinery and they are great corporate neighbors. They do more for the community than the federal government has ever done.
Also you would be shocked at how much of a capital hog a refinery is. They are doing a 300 million project now to take benzene out of gasoline because of a government mandate. Before that it was 280 million to take sulfur out of diesel.
About ten years ago they decided that all employees and contractors in the plant had to wear nomex fire retardant coveralls this was not a government mandate but a safety issue and was put in their safety rules that as of Oct 1st all employees would be required to wear these coveralls. Oct 1st rolls around and the coveralls are not here from the supplier so they informed everyone that they would not be available and would postpone the requirement however they failed to change it in their manual. OSHA was in the plant on other business and fined them 70 million dollars on Oct 1st they negotiated it to 35 million.
About every spring and fall they do what is referred to a s turn around where they tear down a part of the plant and rebuild it this is at a cost of around 60 to 120 million depending on the scope of the turn around. They are planning the turn around now for three years from now that is how intense the planning is plus they have to have all the parts special ordered. A lot of the vessels which are tanks with pipes and connections all over them are ordered from Japan and shipped here unloaded at New Harmony Indiana ( I think) and trucked in with a semi trailer with over 100 tires. I can’t tell you how many days and permits and the routes they have to take to get it to the refinery in Robinson Illinois. Oh yes their electric bill per month is 1 million dollars.
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