Wednesday, April 26, 2006

Refining Capacity

Well, whaddya know?

Following up on a remark made yesterday on the Limbaugh show, we looked it up:

"We also implement projects that enhance refinery capacity and yield. ...we have effectively added a new-industry-average -sized refinery to our portfolio every three years..." (Exxon-Mobil 2005 Annual Report, P. 29)

We could still use a new refinery or five, but that ain't bad in the meantime.


M.Z. said...

With oil, how much of rise do you account for as an inflationary hedge and how much do you attribute to supply/demand issues? I'm thinking close to 90% of it is an inflation hedge.

Dad29 said...

I agree with you that oil's price in USD has a good deal to do with the erosion of the USD's value.

90% is a good guess, but any number over 50% is likely valid.