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SoxFan

03/05/22 11:44 AM

#404246 RE: zab #404240

oil distribution is primarily through pipelines and then either refinery or export to another refinery. Then split into whatever market there is for type of oil then shipped. It can absorb much more production per day. The storage is already there.
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Zorax

03/05/22 12:04 PM

#404253 RE: zab #404240

I get your example of bulk, however I don't think it's the correct analogy in itself. You're dealing with a finite storage problem where you don't have extra buildings to house product. You don't have floating containers to put your stuff in. Thousands of containers all over the world.

The oil industry has almost unlimited holding capacities in many ways. And who knows how many distribution lanes of different parts of the same product going out. Gas stations are but a part of the oil world.

Here's the possible weird thing. So many oil manufacturers own or lease the gas stations themselves. So they are billing themselves for product? Even if you own the station as a franchiser, you're still paying bp for the gas.

So, I own the rigs that pull up the crude, as well as the all shipping and ships to and from the refinery that I own and own the trucking and pipelines and own the gas stations that sell my product in one form to the people and pay a single person minimum wage to take the money. Then I take massive tax write-offs and pay literally no percentage of taxes in any country I do business with. Then announce record profits yet again in a world wide pandemic. Nice totally closed gig.