Why are there no new Oil Refineries built lately when price of Oil today is higher than it was 50 years ago?
In: 196
Because they don’t make money off the price of oil. They make money off of how much they can sell the refined products minus the price of oil.
It’s also viewed as a losing investment. These refineries are expensive and can take a decade or more to pay off. The push toward EVs and renewables makes that investment less and less likely to be profitable in the future. Instead, companies opt to keep their existing refineries running for as long as they can.
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