But, even if China had heavy-crude refining capacity--which it doesn't--it wouldn't make economic sense to trade the four-day boat trip to Houston for a 40-day ride across the Pacific.
Former PDVSA executives recognized that the U.S. was their primary market, and it didn't make any sense to allow foreign investors to reap the rewards from investing in heavy-crude refining capacity.
Specifically, Icahn cited widening crack spreads, or the difference between crude oil prices and the price petroleum products that come from refining the crude.
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If Ohio Fresh were refining crude instead of producing eggs, it might have been shuttered some time ago.
Higher gas prices are the result of both regulation and lack of infrastructure related to transporting and refining crude oil.
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Anything related to the exploration, transport or refining of crude, gas or biofuels anywhere can be found here.
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Downstream activities generally refer to the refining of crude oil and distributing its by-products including gasoline, natural gas, LPG and diesel.
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Rockefeller, for instance, revolutionized the refining of crude oil into kerosene, enabling Americans to cheaply and safely light their homes at night.
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The Saudis are unlikely to bring new, lighter crude, or bigger refining capacity for their heavier oils, onto world markets until next year.
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They called for more investment in the production and refining of crude oil, for more efficient use of energy and more work on alternatives to oil.
While refining of crude oil and natural gas have hit ten year lows, at 10.8 million and 5.1 million cubic meters annually, prices have only begun to move up in the last two years, albeit at dramatic rates.
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It is home to independent crude-oil refiner Western Refining Co. and to Fort Bliss and has a rich history.
Without a new supply it would be reduced to earning a slim refining markup on crude it buys from well owners.
It is home to independent crude-oil refiner Western Refining Co.
Petrobras is a vertically integrated oil company, participating in exploration, production, refining and retailing of crude oil and gas.
The prices of refined products like diesel, gasoline and jet fuel, might increase much more sharply than crude-oil futures because of the refining belt that runs along the Gulf.
In China, where much of the growth in oil demand is generated, 80% of refining capacity is dedicated to sweet crude.
The government bought this oil, which it calls the Northeast Heating Oil Reserve, in late August by trading in 2.8 million barrels of valuable crude and taking the hit for a nasty refining markup.
Refining margins generally tend to increase when crude oil prices rise as this leads to higher average prices for various refined products.
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Petrobras was forced to import crude and gasoline in the quarter, as its refining capacity allowed it to process 1.886 million barrels of oil per day, while they sold 2.2 million.
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Because there is so much excess capacity in the worlds refineries, because there is a fair range of capabilities in that excess capacity and because if there was not enough refining capacity to handle all the sour crude that is available, the price of sour crude would be selling at a greater discount to sweet crude than the current modest discount.
Hence, the gasoline like crude is selling for a discount and some folks are reportedly refining it in the field.
Shell said that it saw stronger margins in its oil refining division, but these were outweighed by lower crude prices during the quarter.
Crude oil prices rose following the fire at the massive Paraguana refining complex, which, combined with a halt in Ecuador's exports, and a reported blast at the Aqaba port of Jordan, was enough to give the market the jitters.
Whatever the price of crude, the gasoline makers were able to tack on a fat refining spread.
The pipeline can import up to 1.2 million barrels per day and is connected through a network of crude oil pipelines to about one-half of U.S. refining capacity.
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Namely, beyond foregoing the obvious benefits that come from value-added processing such as refining (gasoline sells a lot more per gallon than the cost of a gallon of crude oil), we are incurring secondary costs that impact, in part, the very environment that radical environmentalists are trying to protect.
Because oil is priced in dollars, the price of crude will continue to soar as long as the dollar remains weak, provided that global demand remains high and refining capacity is limited.
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