JimZ_.........

I'm really surprised you made a statement like this....being a California resident.

Big Oil Companies (your terms) have been trying to build additional refineries for over 30 years. Local "action" groups, local governments and environmental groups have pursued legal action to stop the activity everytime....and won. It's kind of like, "Not in my back yard!".

For example, about 15 years ago, somewhere in upstate California a NEW REFINERY was blocked because of some type of Pack Rat that would be eliminated. Here, in Arizona, plans were halted to build a refinery near Yuma because the local Indian tribe said the ground being developed MAY be sacred....but THEY build a "Sky Walk" over the Grand Canyon and charge $75/person to use it......to say nothing of the gambling casinos.

To upgrade a refinery is very close to building a new one. So the same groups are effective in blocking the effort.

Current refinery capacity is currently at 98%. We Americans, are using every drop that is produced, leaving very little room for over capacity, surplus, etc.

This information is culled from the DOE and various trade publications and investment websites. It is not my opinion.

 

Captain.....

I think, to a limited point, you are correct. But, the gas ONLY stations that you mention......are they corporate, independant, or individual owned? Are they individual owned, corporate stations, that were purchased many years ago.

I guess what I'm indicating is.....what is there fixed liabilities. That has a lot to do with how they conduct business.

A individually owned and operated gas station can provide just fuel and cigs. to make a living because they have no franchise fee, may own the property outright and have a different, long standing agreement with a major fuel supplier.

The gas and shop stations have franchise fees, rent, leasehold, delivery charges, etc. that are established under todays business standards/requirements (simplified analogy....house payment 30 years ago might have been $125/mo. and still satisfied at that rate...if still occupied Todays more like $800-$1000).