Seeking Alpha

PBF covets California refineries as Valero calls them "weakest"

  • A day after Valero Energy (VLO) called its California operations as its weakest group, PBF Energy (PBF) Chairman Tom O'Malley says he’s interested in buying a plant in the state.
  • O’Malley is eyeing California as west coast refinery margins hover at the highest seasonal level in seven years, boosted by plant repairs and fuel exports to Latin America; the state’s refiners also are pulling in a record volume of oil by rail from North American shale plays, allowing them to displace costly imports from abroad.
  • VLO CEO William Klesse said in its earnings call yesterday that the financial performance of the company’s California refineries is "not that great"; VLO runs the 132K bbl/day Benicia refinery near San Francisco and the 78K bbl/day Wilmington complex near Los Angeles.
Comments (6)
  • Qniform
    , contributor
    Comments (2708) | Send Message
     
    As a PBF shareholder and California resident, I think any refiner who WANTS to operate here is crazy - especially in Benecia. I hope they pass that one by....
    30 Apr 2014, 06:43 PM Reply Like
  • manfredr
    , contributor
    Comments (5) | Send Message
     
    From where do you expect to get your gasoline?
    30 Apr 2014, 09:00 PM Reply Like
  • Qniform
    , contributor
    Comments (2708) | Send Message
     
    Did you miss my point? Will gasoline disappear if PBF doesn't buy a refinery?
    30 Apr 2014, 09:44 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    But California is soooo business friendly (TM)
    30 Apr 2014, 06:52 PM Reply Like
  • 22460801
    , contributor
    Comments (18) | Send Message
     
    Just wait till AB32 kicks in and makes it even more nfriendly for refiners next year
    1 May 2014, 08:48 AM Reply Like
  • Blue22
    , contributor
    Comments (256) | Send Message
     
    Isn't it amazing how Jerry Brown's California has apparently solved most of its problems and is full-speed-ahead? Surely, converting the desert hills to wind and solar farms is the answer and CA no longer needs much petroleum.

     

    Valero, which produces much of your CA gas and fuels is fed up! They also produce much of your ethanol, which has given residents a brief delay from energy bankruptcy. This is the only place in the world which sits on the Pacific ocean but doesn't have any water! Wait until the Santa Anna conditions get through with the stupid energy farms.
    2 May 2014, 01:05 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs