jwaydog

The Relationship between Oil, Drillers and Refiners

With regard to the refiners, we know the crack spread has not been favorable. Additionally (however often overlooked) the operating cost per barrel has risen significantly. For example Valero's 1st quarter operating cost per barrel was $4.69 as compared to $3.93 for year 2007 and $3.53 for 2006. I want to own the refiners but cannot bring myself to reenter.