Valero Energy Corp (VLO)

darkflame (98.86) Submitted: 6/17/07 6:43 PM : Start Price: $76.17 VLO Score: -37.30

The dearth of the new refining capacity used to be a U.S story, with commentators pointing out that there hasn't been a new refinery built over there (USA) since 1976. The upshot seemed to be that more gsoline would have to be imported from countries where local opposition and construction costs were less of an impediment to refinery construction. Well, refining is becoming a global bottleneck, not just an American one. Also, smaller companies like the portuguese GALP.LS are taking advantage on this bottleneck presenting themselves as world class refiners and selling our gasolines in the USA.


Needless to say, the lack of new refining capacity bodes very well for refiners profit margins.





This is the largeste, purest amd most leveraged play on the refining business. Yay.





Outperform, dude.

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