Publications: Notes at the Margin

Exercises in Economic Game Theory: Delta Airlines, JPMorgan, and The Carlyle Group Are Smart (April 30, 2012)

 

There is an arrogance among those working for oil companies, those following these firms for investment banks, and most reporters covering the oil industry that is unbearable. “We know best” is their motto. If Conoco decides it cannot profit from operating its Trainer refinery, then no one can, according to them. If Sunoco cannot profit from its Philadelphia refinery, then it is impossible to make money, according to these experts. In their view, anyone who questions them must be stupid. Doubters quickly become pariahs.

 

Recent activities by the executives of Delta Airlines, JPMorgan, and the Carlyle Group today have made them pariahs with the industry and its fellow travelers. This report discusses these firms' pursuit of oil refinery acquisitions and the implications of their success for oil markets.

 

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