Refining Community Logo

RE: Construction co face more layoffs (30%) 2009

Home Forums Refining Community Refinery News Motiva Port Arthur, Crude Expansion Project RE: Construction co face more layoffs (30%) 2009



guest, you are correct. the tanks are very close to complete if not completed. we would drive by them all the time, when we would get shuttled to our work area. one thing is certain, gas prices are going up, yet crude is about $41 a barrel. do not be surprised if those tanks are full already. gas should be at about $2.25 this summer, maybe $2.35. that is reasonable, fair. if the price of crude remains where it is at. refineries can and will make money with these prices.
the energy business is very speculative. it takes some of these projects along time to recoup cost and start making money. i am not surprised if indeed that is the case with the lng or lpg projects in the golden triangle. however, i see the lng market very good market in the coming years.  
motiva cep clearly understands this. moreover, they understand that costs are getting very expensive. as an example, what cost $100 just ten years ago, cost $166 now. i am specifically talking about refinery equipment. you get the point.
still, there are just a hand full of firms that can manufacture these modules, vessels, pumps, etc. , what happens is someone has to wait. especially when the expansions are all occuring around the same time. oh yeah, prices start going up because of this. supply and demand, baby.
i just hope that motiva straightens everything out. i would not mind going back in 2010.
i need to get on my tools. every project it seems is waiting. it reminds me of , oh the place you’ll go, by dr. seuss. everyone is just waiting. waiting to fly a kite, waiting for the bus to pass by, waiting to catch a fish, waiting and waiting. but the waiting place is not for someone as bright and talented as you. yep, a lonely journeyman carpenter. i will smoke me a cohiba today.

Refining Community