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.

The Relationship between Oil, Drillers and Refiners

It seems to me that conversely drillers are much,much more sensitive to a decline in oil than refiners. At this point the research on a decline may be in order. I have owned OIH for a long time but am out now due to this belief (though I like the drillers long term) just not at this level. Lost my a-- this year on the refiners waiting for the dollar to strengthen and oil to wane. Now I would like to get back into vlo,tso but am worried about gasoline demand. Ok, it feels better to talk about it.

The Relationship between Oil, Drillers and Refiners

Actually, the summary that oil drillers greater upside relative to the price of oil vs refiners downside is very interesting and therefore I retract my previous statement. Nice work.

The Relationship between Oil, Drillers and Refiners

duh