Going Away

Not me, this time – malheureusement. But oil refineries. They’re going away. They’re not leaving today. But they’re going away. The article makes for an almost wistful, Christmas Eve nostalgia for how, pretty soon, we’re not going to have them to kick around any more. And boy will we regret that. Except we won’t.

Gasoline demand, which many analysts had long expected to keep rising for decades, is down sharply in the recession. And refiners are increasingly convinced that even after the economy recovers, demand will not grow much in coming years because of the rise of alternative fuel supplies and the advent of tougher efficiency standards for automobiles.

Plagued by boom-and-bust cycles of rapid expansion followed by sharp belt-tightening, refining companies have often struggled to operate at a profit. That is a contrast to the production side of the oil business, long a road to riches.

“Oil production creates wealth, but oil refining has often destroyed it,” said Costanza Jacazio, an analyst at Barclays Capital in New York.

Even so, these are unusually harsh times for oil refiners. The recent drop in gasoline demand could result in more refineries being closed in the coming year.

Talk about shock and… aw. But this has very little to do with eco-anything, really. It’s just an economic situation, itself in transition, and away from where the fossil fuel industry thought they would ever go or be, which is not far from here – or actually about 2007. This is itself a problem with the imagination of your average B-school go-getter, seeing just far enough to be able to carve out their own little piece of the bottom line as it exists as the status quo. Then having the proclivity to channel all remaining energy into protecting that little slice of heaven. Instead of being able to recognize the shortcomings even of a system beneficial to them and foresee workable, if not equitable, adjustments to that system. Imagination fail, like a tractor beam. Like a circle, baby.

And this is transferrable to many issues and realms, including the political and HCR. If you doubt that, check out another op piece today, and witness the depravity that was Phil Gramm circa 1993. Hunted with dogs, indeed.