I’m sure you saw this in OGJ June Issue 24/Vol 109 but just in case here it is! (Note looks like you will have go link or read issue to see table on sales example – because table did not post)
Here is good article from this months OGJ June 2011 on all the downstream deals where integrated oil companies trying to shed refining assets (and get into “better return” E&P investments) have not bothered to find strategic buyers and taken half value (many US ~$800-6,000 per bpd capacity) prevalent just few years ago (+$16,000 per bpd capacity ~2007).
The article goes on to show that many purchasers end up with a windfall US landlocked, cushing bottlenecked WTI discounted crude/feedstock values compared to EU Brent/other US sweet crudes (LLS) which is (would have past purchases) bring values back closer to 2007 levels.
I have reported on several other articles (June-May BP Arco/Carson & Tx City asset sale & LyondellBasell French refinery sale, May-June recap EU refinery asset sales & June-1Q recap US Excess Refinery assets) about folly of integrated upstream oil companies giving away downstream assets to shift funds into E&P on false premise that crude demand & supply are driving crude market prices instead of speculators trading paper volatility on false rumors.
Regards
