Plight of the U.S. Refiner: Climate Bill, Stagnant Demand and Weak Margins
The latest doomsday report about proposed climate change legislation centers on the plight of U.S. refiners, essentially predicting the ultimate downfall of the industry as costs become too high and production shifts overseas. U.S. refiners and their bottom lines have already been punished by a recession that has curbed demand for oil and gas and pushed its margins down sharply. So what will be the industry’s ultimate undoing? Will it be climate change legislation? Or will it be due to continued slowing demand for gasoline in the U.S., aided by an increase in the biofuels mandate and stricter fuel economy standards? Let’s set aside for a moment that the study, conducted by global consulting firm EnSys Energy, was commissioned by oil industry group…
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