Quote:
Originally Posted by flyrodfisher
Unfortunately....it not quite that simple for a heavy oil facility.
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It's nowhere near that simple, they have pipeline capacity pre-booked, they don’t have a great deal of extra storage, the plants like to run at certain rates, or they have issues, and they have to keep the employees working, so they prefer to keep refining and pumping at fairly similar rates, other than during maintenance outages, or when there are issues with the plants. And if the profit per barrel drops significantly because the price falls, and they reduce the amount of barrels per day significantly, by cutting rates, they could end up operating at a loss.