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Started By
Message
re: This entire event has made me realize how dumb people are...
Posted on 5/14/11 at 11:50 pm to JudgeHolden
Posted on 5/14/11 at 11:50 pm to JudgeHolden
quote:
The point is that Houston has huge advantages, as does Beaumont. You are closer to the Gulf, you have a far more business friendly government, and your channel is not ever going to shift.
But you are exposed to the wrath of the Gulf. Salt water, hurricanes, etc
Both have advanctages over the other and ALL have large industry.
THere are many economic factors involved. My piont is pertaining to the Miss river, its not going to leave BR for a LONG LONG time!
ANyone wanna bet
1
Posted on 5/14/11 at 11:54 pm to the LSUSaint
quote:
ANyone wanna bet
Investors never bet without expecting return. A hurricane will shut down your refinery and damage it. A waterway shift will leave you with a hell of a lot of useless plumbing and storage that is in exactly the wrong place. Remember that there is no cheaper way to ship bulk over distance than by water, and there is no more expensive way than by trucking. (Well, I guess you could Fed Ex it and spend more). The margins in refining are tight. So if you ever lose the waterway, you lose the entire investment.
Take it seriously or don't. But I guaran-damn-tee you that the people who make the decisions about big capital investments are thinking about it.
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