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this post was submitted on 04 Feb 2024
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Only so long as it's not rebuilt or replaced (e.g. in India to cope with reduced oil from Russia).
Environmentally, this isn't good. As a state at war, they are an excellent target to up the pressure.
War in general is horrible for the environment, but if a few burning refineries over a short period of time can stop a war, then it may be a net benefit.
They could just as easily build one in India without this one being destroyed and either way, replacing it costs money. You're talking absolute nonsense.
demand
Ok.. I DEMAND that he stops talking nonsense!
That better? 😛
Supply and demand applies. In the short term, oil usage is fairly inelastic. If supply is squeezed, by Russia not being able to produce, then prices climb. This encourages the building of new plants, or the expansion of old ones due to rising profits. It also encourages affected nations to build plants, to secure their own national requirements.
To fix things, you need to attack both supply and demand. Demand is helped by reduce the friction with moving away from oil, as well as providing cost competitive alternatives. Supply is helped by forcing the externalised costs back into its pricing. This reduces profitability, and increases the pressure to change away from oil.
Not on the local level with a global commodity like oil.
Not necessarily, no. Other oil producing countries might elect to release some of their reserves or increase production to keep prizes down. As I said, global commodity.
Aaaand the rest just keeps on in the same way of assuming that local supply has vital effects on the price of a global commodity, so I'm just gonna stop repeating the point you keep missing in your zeal to make one less oil refinery in the world a bad thing 🤦