Who Benefits From $80 Oil?
$80 oil is not the best circumstances for energy investors and oil companies alike. However, there are some within the energy industry who could benefit from this. How exactly is this true? Paul Ausick explains who could benefit and why.
"An $80/barrel price would definitely be bad for big oil companies like Exxon Mobil Corp.(NYSE: XOM), Chevron Corp. (NYSE: CVX), and ConocoPhillips Corp. (NYSE: COP). Refiners, however could do better, especially those able to get WTI crude. US refiners situated along the Gulf Coast are essentially tied to Brent prices, while refiners further from the coast can get their hands on the cheaper WTI. That allows these companies to take advantage of the crude differential to achieve more margin.
Of the refiners, Valero Energy Corp. (NYSE: VLO) is most closely tied to the Gulf Coast and higher priced crude. Marathon Petroleum Corp. (NYSE: MPC), Tesoro Corp. (NYSE: TSO), and Western Refining Inc. (NYSE: WNR) all have more plants outside the Gulf Coast region, and thus, a better chance to take advantage of wider refining margins."
Find additional research and charts here: http://turnkeyoil.com/2011/08/09/who-gains-from-80-oil/