With the purchase from Cenovus' 50% share of WRB and now the pipeline deal to Arizona and California P66 has now made 2 good deals in a row. These deals place substantial focus on refining.
The Elliott directors must be making their presence known. Go Go would just buy more broken-down gas plants.
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@gn The new leg would be from Texas to Arizona. The Arizona to California leg already exists
Good luck approving a new pipeline permit in Cali
It doesn't need to be refined in California, it just needs to meet the requirements of the air resources board. Little more stringent requirements, but nothing that Borger, Wood River and Ponca couldn't make. There just isn't a great way to get stuff there. I think the pipeline is a decent call if we're closing LAR.
Actually think that alternative sources of fuel was part of the agreement with California when closing.
It is my understanding that california gas stations can't sell gasoline that was not refined IN California...and I understand that there are no pipelines (in gasoline service) from North to South California ? AND didn't they pass a law about storage of gasoline just in case of un-planed outages?
@a5 until commercial trading aligns its incentives and books to truly be general interest to the company and not to itself, we won’t see anything different no matter how many assets we build, buy, or sell.
The one flaw with your logic: we don’t operate refining assets well and we are not particularly good at capturing the value in the market through placement of refined products.
Our margin capture vs. focused refiners substantiates my claim. We can talk up our commercial trading capability all we want but unless we see it in the results it is fiction.
You don’t get better by getting bigger. If anything, it will magnify our weaknesses.