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Posted on 7/15/11 at 4:12 pm to TulaneUVA
quote:
baytown and baton rouge
Those are the two I had in mind. I would assume those two are a large percentage of there refining/chemical business in the US.
Posted on 7/16/11 at 12:55 am to TulaneUVA
Also wanted to add, if the site is not integrated and the crude transportation/supply is not cheap (e.g., no port to receive tankers, no pipeline), margins are EXTREMELY tight. Many smaller sites are probably operating in the red but are attempting to ride it out until profit margins rise again circa early 2000's. If one does their research, you'll find that many of the smaller refineries are finally going idle because their time is up.
Posted on 7/16/11 at 6:50 am to TulaneUVA
I do engineering work for oil refineries and two we do work for have shut down because of poor/expensive supply. The only One we work for that has supply issues and does well is a specialty lube facility, which is a whole other ball game economics wise.
Posted on 7/20/11 at 9:27 am to LSU0358
I would be shocked if either XOM or CVX did this. There are numerous advantages to having upstream and downstream components integrated and those dont always show up in a balance sheet.
Posted on 7/20/11 at 2:13 pm to TulaneUVA
quote:
Baytown and Baton Rouge XOM sites are the #1 and #2 largest refineries in capacity in the Americas
Until Motiva Port Arthur finishes it's Crude Expansion Project, then it will be the largest in the US.
This should make XOM & Motiva about equal in capacity across the Gulf Coast.
Posted on 7/20/11 at 8:59 pm to lsugradman
Yeah, like I said, the CVX person said that there is too much synergy for CVX and XOM, but that they are the exception, not the rule, which I guess is fairly obvious in its own right given the size and profits of those two companies.
Posted on 7/20/11 at 9:10 pm to kfizzle85
Obama has mentioned many times how he wants to remove tax breaks for the integrated oil companies.Perhaps that played into the reasoning behind no longer being integrated.
Posted on 7/20/11 at 9:32 pm to Kenny717
I did not get the impression from this person that that had anything to do with it. I could be wrong, but she's about the most straightforward business person I've ever talked to.
eta: I will add to that that, as far as I know, the tax breaks to which you are referring are related to LIFO inventory accounting and deprecation/expensing certain E&P activities. Given that corps get taxed on their consolidated financials, getting rid of a low margin business and increasing NI would only make the effects of any of those tax changes worse. If there are other tax issues to which you are referring, please comment, I would like to know.
eta: I will add to that that, as far as I know, the tax breaks to which you are referring are related to LIFO inventory accounting and deprecation/expensing certain E&P activities. Given that corps get taxed on their consolidated financials, getting rid of a low margin business and increasing NI would only make the effects of any of those tax changes worse. If there are other tax issues to which you are referring, please comment, I would like to know.
This post was edited on 7/20/11 at 9:41 pm
Posted on 7/20/11 at 9:47 pm to Kenny717
I've worked for ConocoPhillips and Chevron. When I worked worked for COP people would say- "What Who?...oh ok" When I say Chevron- "Oh cool- (basically I know that company and they have a quality product." COP's marketing / distribution was retarded. Never in large markets- just really random small towns and marketed under Phillips 66. Chevron CEO, John Watson said from day 1 he was going to streamline the downstream business- and has. Margins are higher for Q2. COP CEO (Mulva) is just awful. Bought Burlington Resources f/ $36 Billion- larger than Exxon/Mobile
or Chevron/Texaco- shite Nat Gas was $13.50. Also he is the
dumbest one of the bunch when the oil execs go to DC and testify.
or Chevron/Texaco- shite Nat Gas was $13.50. Also he is the
dumbest one of the bunch when the oil execs go to DC and testify.
Posted on 7/20/11 at 9:51 pm to TchoupitoulasTiger
Yep. Your post is spot on
Posted on 7/20/11 at 10:04 pm to lsugradman
From my impression the integrateds were targets simply due to size. Big oil is so hated it's a political win. There was know logical reason to do so.
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