Here is Bloomberg’s report on Refining position. <Be sure to read “Gross Profit & Gross Margins” in their statements remember they are still reporters – the Net versions are much grimmer than the Gross Profit/Margins.> Because of lower complexity – most of the idled/shutdown Refinery capacity (IEA) projections are for China & Europe …..but is essentially true for most global low complexity refineries. And in bad markets lot of Independent / Non-Integrated Refineries have similar problems despite level of complexity because of exposure on non-Integrated crude supplies – (which is why Valero chimes in on lot of the comments).
But ~ backs up a lot of projections I have been making on bad government programs Ethanol/Carbon Tax impacts & ect around similar positions.
The stupidity of Ethanol is proof that government involvement in business is always a bad sign – moving from 7% to 10 & 20% esentially cancels out all progress Car companies could make improving gasoline milage up 35MPG because every 3% Ethanol essentially removes 1-3MPG, and all data coming in on Ethanol damage to carbruetor jets says you couldnt keep them tuned to stay at 35mpg.
Speaking of Government Programs – does anyone remember that the Department of Energy was formed 40 years ago to decrease US dependency on foreign oil & although it now has budget of $24Billion/year and over 24,000 folks – it hasn’t made a dent (in fact their record shows a push against all US developments in favor of bringing in foreign oil)!