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Petroleum refinery stocks set to boom on shortage

Posted August 18, 2008

"The National Petrochemical and Refiners Association says the last new refinery built in the United States was Marathon Ashland’s Grayville, La., plant. And this plant was completed in 1976… Yet whenever a new project is proposed…plenty of Americans are up in arms." — David Newman

Blogger’s note: Petroleum refineries have been on our mind a lot recently here at TFN. In fact, we recommended one a few weeks ago to our Hot Stock Confidential investors. And we’re up more than 16% in the stock, as of today’s open. Refineries are certainly thriving now that oil has fallen from its peak, but there’s another reason these stocks are sure winners. Like state prisons and sewage treatment plants, everyone understands that petroleum refineries are necessary for the country to operate smoothly, but no one wants one built anywhere near where they live.

David Newman of Sovereign Society has an interesting perspective on the "not in my backyard" problem for refineries. And he may know where the next petroleum refinery is going to pop up… if a vocal minority doesn’t get its way. Read on below to learn more.

by David Newman

Baltimore — (TFN):  There are plenty of reasons why gas is still so expensive right now.

First and foremost the cost of the raw material; oil has climbed steadily over the last eight years. As the cost of oil rockets higher, the cost of gasoline always dutifully follows. And follow it did – to an average high of US$4.10 per gallon.

But following in a close second place is the fact that the United States just doesn’t have enough oil refineries.

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The National Petrochemical and Refiners Association says the last new refinery built in the United States was Marathon Ashland’s Grayville, La., plant. And this plant was completed in 1976.

(Even with the recent pullback in oil prices, crude still hovered around US$111 as of this morning.)

Yet whenever a new project is proposed…plenty of Americans are up in arms. They all scream: “Oil refineries? Not in my backyard!” Read on to learn more.

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Posted by TFN-Oil · Filed Under Oil and Energy 

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