Energy
Low Oil Toll: Conoco Delays Saudi Refinery (COP, TOT, CVX)
Published:
Last Updated:
About two and a half years ago when crude oil prices were heading up at a pace never before seen, the Saudi Arabian oil minister claimed that there was plenty of oil, but not enough refining capacity. To show their good faith, the Saudis would help build two refineries in Saudi Arabia with a total refining capacity of 1 million barrels per day. The Saudis partnered with ConocoPhillips (NYSE:COP) to build a 400,000b/d refinery and with Total (NYSE:TOT) for a 600,000 b/d refinery atYanbu.
Yesterday, ConocoPhillips and Saudi Aramco, the Saudi nationaloil company, stopped the bidding on the refinery’s construction,blaming "uncertainties in the financial and contracting markets."Translation: the Saudis are worried about their profits from crude oiland want to hold onto their cash.
The Saudis weren’t the only ones interested in building exportrefineries. Chevron (NYSE:CVX) joined with India’s Reliance Industriesto construct a 660,000 b/d behemoth at Jamnagar, alongside an existing600,000 b/d refinery. The new plant is expected to be operational bythe end of this year.
Whether building export refineries is a good idea or not remains to beseen. Still, when the richest oil-producing country in the world callsa halt to new capital spending, we should be paying attention.
Paul Ausick
November 7, 2008
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.