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View Diary: Countdown to $100 oil (39) - BigOil running out of oil (109 comments)

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  •  My point is (0+ / 0-) would be stupid to eat into those profits for a huge capital investment that will end up going unused within 10 years. Peak oil is here or nearly here and it would be stupid for them to spend the money on refineries that they will not be able to supply with crude. That would not be true if they knew there was abundant oil out there. In that case it is simple "linear programming" problem to find the maximum profit point.

    I'm suggesting that the lack of investment in infrastructure is because they know such investment won't provide return.

    •  maybe yes and maybe no (0+ / 0-)

      you are assuming that the only way to increase oil for refining is to increase total amount pumped.  there is also the scenario of merging with another company to increase a specific company's total oil.  also, last i checked 'huge capital investment' is not required for increasing refinery capacity.  not when compared with the size of current profits at least.  

      as an aside, i actually applaud this bit of capitalist short term greed because it makes driving more expensive, which will only go to increase the need for conservation.  

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