The lack of investment in the types of oil refineries to refine US oil domestically isn’t as much for optics purposes. But that relative to the amount of investment required to build new refineries to compete with the current foreign ones isn’t a good return on investment relative to the up front cost and the existing profits of the current arrangement.
Additionally, the push to stop depending on fossil fuels makes the investment an even riskier endeavor because the refinery might be outdated by the time it starts making a profitable return. It would be like if the entire world was highly dependent on lemons, and a farmer planting a lot of lemon trees that take 2 - 5 years to grow when half the world is insisting on switching over to limes. If the lemons were being produced right now and all that has to be paid for is the regular maintenance of the lemon trees, it would be profitable. However, the farmer has to purchase the land and seeds, prepared the land, install and acquire appropriate farming equipment, hire an entire staff that are experts in lemons, and grow the trees before even receiving a single penny in revenue, all while a good portion of the population is anti-lemon because lemons are harmful to the environment (hypothetically speaking) and wants to switch over to limes. which are less damaging. Business-wise, this would be a terrible investment. It’s not that it couldn’t possibly turn a profit, but when you’re an investor with considerable capital, you’re going to invest that in ventures that are more likely to produce a profit. It would make no sense to risk your capital on such a risky venture when there are hundreds of others that are less risky.
This sounds like a good idea. I wonder why it hasn’t happened. Maybe lobbyists have prevented politicians from doing so so that the USA is dependent on countries with appropriate refineries, which protects the income and security of the other country using the USA’s GDP and military.
The lack of investment in the types of oil refineries to refine US oil domestically isn’t as much for optics purposes. But that relative to the amount of investment required to build new refineries to compete with the current foreign ones isn’t a good return on investment relative to the up front cost and the existing profits of the current arrangement.
Additionally, the push to stop depending on fossil fuels makes the investment an even riskier endeavor because the refinery might be outdated by the time it starts making a profitable return. It would be like if the entire world was highly dependent on lemons, and a farmer planting a lot of lemon trees that take 2 - 5 years to grow when half the world is insisting on switching over to limes. If the lemons were being produced right now and all that has to be paid for is the regular maintenance of the lemon trees, it would be profitable. However, the farmer has to purchase the land and seeds, prepared the land, install and acquire appropriate farming equipment, hire an entire staff that are experts in lemons, and grow the trees before even receiving a single penny in revenue, all while a good portion of the population is anti-lemon because lemons are harmful to the environment (hypothetically speaking) and wants to switch over to limes. which are less damaging. Business-wise, this would be a terrible investment. It’s not that it couldn’t possibly turn a profit, but when you’re an investor with considerable capital, you’re going to invest that in ventures that are more likely to produce a profit. It would make no sense to risk your capital on such a risky venture when there are hundreds of others that are less risky.
the government should at least subsidize a couple so in the event of an apocalypse we can make our own gasoline.
This sounds like a good idea. I wonder why it hasn’t happened. Maybe lobbyists have prevented politicians from doing so so that the USA is dependent on countries with appropriate refineries, which protects the income and security of the other country using the USA’s GDP and military.