Edited for warning above.
⚧ C.T.L.W. You figure it out
My Endo doc went over my blood work. "I see your estrogen level is now at 315, do you feel like you have too much Estrogen now?"
I told her "... N... N.. No..." and started crying.
But it will go up.
The reality is that Saudi Arabia isn't going to over-produce forever. Once foreign companies lose a ****-ton of value Saudia Arabia will most likely buy a few out, stop producing as much, and their investments then grow significantly in value.
It's simple, but it's pretty genius, gotta give em some creds for that. Takes out some of the competition while at the same time make some money off your investments.
-----MOS 19D = cavalry scout = best damn MOS there is
Saying something is highly profitable without mentioning their profit margin is meaningless.
As for refineries: From your link:
Ground was broken in March 2013 for construction of a new refinery in Dickinson, North Dakota. The 20,000 barrel per stream day (bbl/sd) Dakota Prairie facility is scheduled to open in December 2014. Kinder Morgan plans to start up a 50,000 bbl/sd condensate processing facility on the Houston ship channel by the end of 2014.
Capacity has also been added to existing refineries through upgrades or new construction. The most recent examples include
In 2012, Motiva upgraded its refinery in Port Arthur, Texas, making it the largest refinery in the United States with a capacity of 600,250 bbl/cd.
In 2009, Marathon upgraded its Garyville, Louisiana refinery. As of January 1, 2014, the capacity (bbl/cd) is more than double its original 1977 capacity.
If the oil companies couldn't see a downward turn because of higher fuel economies and lackluster demand because of that, that's too bad, what's worse, is that it's mismanaged.
Increased spending in what? Infrastructure repairs to outdated refineries?
What investments? Do you see any new refineries recently?
You wait. If and when Keystone is built, we'll see how much of that profit goes into oil company profits in the USA, right now, OPEC is cutting American oil exploration and oil production like splitting hairs, it's a cutthroat business. Oil exploration and oil production in the USA is so bad right now, oil companies are laying off workers in the USA.
If and when OPEC decides to raise crude prices, America might be competitive again.
I recall the sales package the oil people sold Americans when the trans-Alaska pipeline was in it's infancy, they claimed America would be oil independent, and it never happened.
Decreased demand is highly attributive for this.
People are driving less, and have more fuel efficient vehicles.
If top level managers and CEO's of oil companies couldn't see this coming down the pike, they're really stupid.
Looks like Kinder Morgan might have bitten off more than they can chew at this point in time
5 Facts All Kinder Morgan Investors Need to Know That Will Affect Its Dividend (KMI)