Why aren't the Oil Companies building new or updating the old refineries with there record profits?

Question

Wouldn't you think that they would be ready to spend some of there extra profits to update there refineries which are all 40 or 50 years old? Do they know something that we don't like there unbelievable profits will continue indefinitely or maybe oil is going to run out sooner they anyone realizes?

Answer 1

Because they have no reason to make the investment to continue with the astronomical profits.   They won't build more capacity because then there would be more supply, thus price would decrease.