Building brand new facilities in Canada to upgrade the tar-like bitumen harvested in Alberta is a costly investment that no longer pays off, especially since many refineries in Texas and Louisiana are already capable of processing the fossil fuel or can be more cheaply modified to do so, analysts say in a new report.
Refining stock prices are undervalued by about 50 percent, Barclays wrote in a 2013 Global Energy Outlook issued on Wednesday. But the investment bank cautioned investors on Big Oil stocks, amid declining production.
Valero Energy Corp.’s planned spinoff of its retail stores remains on track to occur during the second quarter, pending IRS confirmation that its shares can be treated as a tax-free distribution to shareholders, Valero Chief Financial Officer Mike Ciskowski said Tuesday.
Saudi Arabian Oil Co., the world’s biggest crude exporter, also expects to become the top producer of refined products such as fuel and petrochemicals, according to Khalid al-Falih, the company’s chief executive.
The new mechanism will mean more-frequent fuel-price revisions that better reflect movements in the global crude market and reduce speculation, the NDRC said in the statement. It may also curb processing losses at the nation’s oil companies.
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