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Investing in Energy: A Primer on the Economics of the Energy Industry
book

Investing in Energy: A Primer on the Economics of the Energy Industry

by Gianna Bern
June 2011
Intermediate to advanced
236 pages
6h 25m
English
Bloomberg Press
Content preview from Investing in Energy: A Primer on the Economics of the Energy Industry

Challenge for Independent Refiners

Independent refiners are subject to the vagaries of crude oil prices and are experiencing, to put it mildly, challenging times. Independent refiners are particularly vulnerable to crude prices simply because they purchase crude oil at market prices to refine. Unlike integrated majors, independent refiners are not refining their own equity crude oil. Independent refiners are purchasing crude oil, often times 30 days or more in advance of when the crude oil will be delivered, refined, and later sold. Therein lays the challenge for many independent refiners.

If a barrel of crude is bought at $80 per barrel and 20 to 30 days later it is refined and ready to be sold, crude oil prices have now moved. The challenge ...

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Publisher Resources

ISBN: 9781118128381Purchase book