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Tar more expensive: Oil Companies robbing peter

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Tar more expensive: Oil Companies robbing peter

Unread postby grabby » Thu 18 May 2006, 14:37:38

I was out front of our office today, and they were redoing our parking lot. Tar has tripled and I was prodding him for information.
Turns out there was a real shortage of oil for a few months so the processing plants were double distilling the thicker tar. This released 20% more oil and gasoline and diesel.

but it cause a tar shortage, which promptly sent tar prices up.
It must be serious for the companies to start robbing peter to pay paul.

He said asphalt is tripled and it is getting as expensive as concrete and a lot of people are in a tizzy over it. He thinks he will still have lots of work patching the roads. This means not as many roads and more holes and patches.

Our infrastructure has already gone into more decline now, We probably won't notice it until next year. Interesting. this is not a game the opil companies are playing, they really do have a shortage.
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Re: Oil Companies robbing peter

Unread postby RonMN » Thu 18 May 2006, 14:48:41

It's the same with nat-gas...over the winter some companies (like brick manufacturers) had to shut down the kilns so people would have heat in their homes...now the price of bricks are up (if not actual shortages).
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Re: Oil Companies robbing peter

Unread postby Shiraz » Thu 18 May 2006, 14:52:22

$this->bbcode_second_pass_quote('', 'b')ut it cause a tar shortage, which promptly sent tar prices up.
It must be serious for the companies to start robbing peter to pay paul.


they weren't robbing peter to pay paul. it is simply a matter of different elasticities of demand for tar and fuels. it makes sense to alter the ratio of production when crude price rises.

of course this is bad, but only inasmuch as the rise in crude prices is bad.

it just makes sense.

in the same way it will make sense to divert grains to ethanol even when millions more are starving.

it's called capitalism and it allocates resources to maximise profit, that is all.
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Re: Oil Companies robbing peter

Unread postby denverdave » Thu 18 May 2006, 16:27:06

This is an exellent illustruation of how everything is interdenpendent. Local and state governments will either have to raise taxes, cut funding for schools or something else, or let their roads deteriorate.
'If a ruler hearkens to lies, all his officials become wicked.'
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Re: Oil Companies robbing peter

Unread postby Sys1 » Thu 18 May 2006, 16:35:36

pstarr : mmm, i don't think it's easy to build a road with biofuels :roll:
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Re: Oil Companies robbing peter

Unread postby Eddie_lomax » Thu 18 May 2006, 16:52:51

$this->bbcode_second_pass_quote('Sys1', 'p')starr : mmm, i don't think it's easy to build a road with biofuels :roll:


Aha - you obviously haven't considered thatched roads :-D
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Re: Oil Companies robbing peter

Unread postby Zardoz » Thu 18 May 2006, 18:46:28

$this->bbcode_second_pass_quote('Eddie_lomax', '.')..Aha - you obviously haven't considered thatched roads.


And how about cobblestones? Huh? Huh? What about that?

Quit worrying so much, people. Everything will be great. Nothing's going to change. Just roll another joint and relax.
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