07-5-07 by dugan
I hadn’t noticed this comment by OilWatchdog user "Julie" until recently, but she makes a point to think about. I had praised Tesoro for its plans to upgrade the old refinery it bought from Shell in Southern California, and to make more California-grade gasoline. She retorted that it just means others will export more, and notes below that refining-only companies don’t import fuel to make up the difference. Other comments on this point?
You did not address the imports – what do you conclude when all of the majors imported product into the west coast and none of the independent refiners did? Not that I am saying they did any wrong mind you, why import product and increase supply/reduce prices when it will really hit your corportion’s income and no doubt stock price, and of course the value of all those stock options the corporate vp’s, etc are awarded? I just think you have plain got it wrong thinking that having Tesoro having a bigger stake in the California market is better for (lower) California market that if Shell was. Shell’s profits in California probably can’t hardly be found in their corporate income. And even Shell imported product. And Tesoro expects to make some money from the billions they invest in that one, rather small by the way, plant. …
06-11-2007 | USER: Julie |