Originally Posted by Tredici
When that refinery had blast off it was early in the morning. I remember opening my eyes and seeing the walls of the house concuss like someone had sucked in the perimeters and then blew them out. Not knowing what was going on my first thoughts were - Rocky Flats, we're dead!
U.S Refineries have been increasing output without asset improvement and pushing out maintenance schedules as cost saving measures as standard operating over the last ten years or so. Talk to the Wall Street Anaylsts who advice on what they perceive is required to keep a benevolent attitude towards the stock price.
Managements position on refinery maintenance is that the best thing possible is to keep them running constantly. They all use the same excuse for not performing more maintenance (there is more chance for something going wrong bringing the units up and down).
If anyone wants to make some money over the next few years buy Valero.
They just inked another deal to buy low-grade crude from Mexico for about $18 a barrel below market. Yes, it costs more to refine crappy oil but they are going to make a killing off this.