Chevron May Sell Refineries as Demand, Margins Shrink

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JT Moderator	Message Posted: 12/3/2008 9:00:54 AM	Ignore JT Report Abuse
	Wednesday, December 03, 2008 Bloomberg -- Dec. 2 (Bloomberg) -- Chevron Corp., the world’s fourth- largest oil company, may sell some refineries as recessions in the world’s largest economies cut demand for gasoline and diesel, squeezing fuel-production margins. The San Ramon, California-based company wants to focus on higher-profit ventures such as natural-gas production offshore Australia and oil developments in the Gulf of Mexico and West Africa, John Watson, executive vice president of strategy and development, said today in a presentation to an energy conference in New York sponsored by Merrill Lynch & Co. Watson declined to say which, or how many, refineries may be sold. Chevron’s refining profit fell 59 percent during the first nine months of 2008 as crude soared to a record and fuel prices failed to keep pace. The refining unit’s contribution to total profit dwindled to 7.1 percent during the first three quarters of this year from 24 percent a year earlier. Visit Bloomberg for full article

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frede2 Champion Author Texas Posts:3,693 Points:794,910 Joined:May 2005	Message Posted: 12/5/2008 8:55:23 AM	Ignore frede2 Report Abuse
	Well, I'm not going to buy any of their refineries
Kowkisser Veteran Author Albany Posts:429 Points:77,575 Joined:May 2008	Message Posted: 12/5/2008 7:52:37 AM	Ignore Kowkisser Report Abuse
	DriverDave, you're someone I can respect =) "Awwww......they're not making any money. It breaks my heart. " Yeah, how dare a company try to earn money. If only more could be like GM, Ford, Crysler, etc... Wouldn't it have been better if they shut down the lines that were not making money 15 years ago and concentrated on where they did earn money. Or if they sold off certain pieces to companies that may have more experience and could earn a profit....
Jagman98 All-Star Author Louisville Posts:822 Points:112,255 Joined:Sep 2006	Message Posted: 12/4/2008 11:10:40 PM	Ignore Jagman98 Report Abuse
	don't sell them foreign companies.....
ligas Rookie Author Long Island Posts:21 Points:15,195 Joined:Nov 2008	Message Posted: 12/4/2008 7:31:31 PM	Ignore ligas Report Abuse
	Yes, 21597, they should sell it to others that are willing to make competitive electric cars!
ligas Rookie Author Long Island Posts:21 Points:15,195 Joined:Nov 2008	Message Posted: 12/4/2008 7:13:21 PM	Ignore ligas Report Abuse
	Chevron is asking Congress for bailout .....what? impossible?...not yet! [Edited by: ligas at 12/4/2008 8:13:38 PM EST]
21597 All-Star Author Colorado Posts:899 Points:254,065 Joined:Sep 2005	Message Posted: 12/4/2008 12:35:50 PM	Ignore 21597 Report Abuse
	Something the automakers should do, if they can/t run a business sell it to someone who can
CpuNurd Veteran Author Oakland Posts:360 Points:49,875 Joined:Oct 2008	Message Posted: 12/4/2008 11:37:29 AM	Ignore CpuNurd Report Abuse
	so ?
murushi Sophomore Author Ontario Posts:142 Points:106,200 Joined:Jul 2008	Message Posted: 12/4/2008 10:49:08 AM	Ignore murushi Report Abuse
	Who would buy them and how would it affect the consumers?
barsantij All-Star Author Greensboro Posts:522 Points:128,340 Joined:May 2008	Message Posted: 12/4/2008 9:41:25 AM	Ignore barsantij Report Abuse
	Not Greed - It is a business decision - The were one of the best for only declining in value by 19% in value - The conspiracy people don't understand that their costs to produce fuel were increasing FASTER than the costs at the pump ... Supply and Demand was totally out of whack - now we are approaching a momentary equilibrium ... They see the writing on the walls regarding electricity and CNG as energy sources for cars ...
chemist74 Champion Author Cleveland Posts:6,735 Points:1,090,220 Joined:Apr 2005	Message Posted: 12/4/2008 9:38:03 AM	Ignore chemist74 Report Abuse
	Andyrew said "instead of selling them, why don't they retool and start refining more diesel? we will ALWAYS need diesel. and with the price of diesel right now compared to the price of oil... how could they NOT make a profit? you can get so much diesel out of a barrel of oil that its ridiculous. way more than you can get gasoline." This is completely wrong. An average barrel of crude yields more than three times as much gasoline as diesel fuel. It is much easier (less expensive) to convert (crack) the diesel fraction to make more gasoline than it is to convert the gasoline fraction to more diesel.
MajorSteve All-Star Author Oklahoma City Posts:722 Points:282,165 Joined:Sep 2006	Message Posted: 12/4/2008 9:37:44 AM	Ignore MajorSteve Report Abuse
	I hope they do not sell it to OPEC!
Bigamus Sophomore Author Kansas Posts:207 Points:465,885 Joined:May 2007	Message Posted: 12/4/2008 9:15:50 AM	Ignore Bigamus Report Abuse
	Sell to who? It won't be someone in the US.
petrophysical Rookie Author Fort Worth Posts:40 Points:18,155 Joined:Sep 2008	Message Posted: 12/4/2008 9:12:47 AM	Ignore petrophysical Report Abuse
	AC-302, a company doesn't need refining capacity to market gasoline with their brand name. Most gasoline in an area will come from the same place, with different additives based upon brand name.
VTROCK Sophomore Author Detroit Posts:176 Points:55,355 Joined:Sep 2008	Message Posted: 12/4/2008 9:08:38 AM	Ignore VTROCK Report Abuse
	This is the story of the US economy. We continue to sell off our infrastructure and manufacturing capacity to the highest bidder for a one time return. Foreign interests keep buying us up with the money we are paying them for products that we used to produce. This is not a sustainable economic model.
BartBuzz Veteran Author Atlanta Posts:416 Points:212,185 Joined:Aug 2006	Message Posted: 12/4/2008 9:05:16 AM	Ignore BartBuzz Report Abuse
	So much for adding new US refineries. But I hope this doesn't impact our will to drill. We must be diligent and stop sending our $$$ to the OPECers. Keep conserving and push for a national energy independence policy.
spheremaker1 All-Star Author Arizona Posts:514 Points:397,550 Joined:May 2006	Message Posted: 12/4/2008 9:04:54 AM	Ignore spheremaker1 Report Abuse
	yep.
armstrmb Champion Author Houston Posts:2,372 Points:522,645 Joined:Jun 2007	Message Posted: 12/4/2008 9:04:21 AM	Ignore armstrmb Report Abuse
	Seems like Chevron bought Gulf Oil and its refineries at the mid-point of the last gasoline crisis (during the late 1980's).
Raider44 All-Star Author Allentown Posts:560 Points:187,910 Joined:Apr 2008	Message Posted: 12/4/2008 9:02:58 AM	Ignore Raider44 Report Abuse
	More foreign ownership of U.S. assets.
jdbgn Champion Author Los Angeles Posts:3,644 Points:593,960 Joined:Apr 2007	Message Posted: 12/4/2008 9:02:34 AM	Ignore jdbgn Report Abuse
	Opec will buy. They've got the bucks. Er, your bucks. [Edited by: jdbgn at 12/4/2008 10:03:21 AM EST]
SUPPER Sophomore Author San Bernardino Posts:228 Points:505,740 Joined:Dec 2004	Message Posted: 12/4/2008 9:02:24 AM	Ignore SUPPER Report Abuse
	they can nopt bild new one
mikespipe Champion Author New York Posts:1,223 Points:290,165 Joined:Jul 2007	Message Posted: 12/4/2008 9:00:54 AM	Ignore mikespipe Report Abuse
	It seems to me that the endless pursuit of higher profit margins at the expense of the core business is a major part of the economic problems that we have. If a company cannot keep a business running well. but can sell it to someone who thinks he can. I think get rid of present management and hire those who can do it . In stead of multimillion dollar bonuses to the losers who can only make money by weakening the company.
dagas1 Veteran Author Orange County Posts:369 Points:114,270 Joined:Aug 2008	Message Posted: 12/4/2008 9:00:22 AM	Ignore dagas1 Report Abuse
	Will they build new ones when demand goes back up?
SeerLV All-Star Author Las Vegas Posts:757 Points:173,665 Joined:Jun 2008	Message Posted: 12/4/2008 8:59:44 AM	Ignore SeerLV Report Abuse
	Who are they kidding?
throttle Champion Author Maryland Posts:4,820 Points:1,067,355 Joined:Jul 2004	Message Posted: 12/4/2008 8:58:56 AM	Ignore throttle Report Abuse
	Just wait...demand will increase again.
jaysun420 Sophomore Author Kansas City Posts:188 Points:47,735 Joined:Oct 2008	Message Posted: 12/4/2008 8:57:18 AM	Ignore jaysun420 Report Abuse
	boy its funny how fast things change...
seville04 Veteran Author Albuquerque Posts:471 Points:587,725 Joined:Sep 2004	Message Posted: 12/4/2008 8:54:56 AM	Ignore seville04 Report Abuse
	poor Chevron--they only made a profit of 7.89 billion for 3rd quarter 2008.
timwil Champion Author Arkansas Posts:2,578 Points:538,655 Joined:May 2007	Message Posted: 12/4/2008 8:54:02 AM	Ignore timwil Report Abuse
	old news
jjulson All-Star Author North Dakota Posts:945 Points:336,375 Joined:Mar 2007	Message Posted: 12/4/2008 8:53:53 AM	Ignore jjulson Report Abuse
	Not enough money in it.
Chazzer Champion Author Nevada Posts:8,310 Points:1,772,310 Joined:May 2002	Message Posted: 12/4/2008 8:53:52 AM	Ignore Chazzer Report Abuse
	Sel refineries to whom?
yetanothercat Sophomore Author Los Angeles Posts:216 Points:41,125 Joined:Jul 2008	Message Posted: 12/4/2008 8:52:26 AM	Ignore yetanothercat Report Abuse
	Poor Chevron.
hank1326 All-Star Author Los Angeles Posts:754 Points:172,280 Joined:Jun 2008	Message Posted: 12/4/2008 8:52:13 AM	Ignore hank1326 Report Abuse
	Keep on conserving to our demand for gas low. More than ever.
mikerock Champion Author Scranton Posts:3,258 Points:245,015 Joined:Jun 2006	Message Posted: 12/4/2008 8:52:10 AM	Ignore mikerock Report Abuse
	No Chevron stations in our area
andyrew Veteran Author Baltimore Posts:322 Points:109,515 Joined:Aug 2008	Message Posted: 12/4/2008 8:51:45 AM	Ignore andyrew Report Abuse
	instead of selling them, why don't they retool and start refining more diesel? we will ALWAYS need diesel. and with the price of diesel right now compared to the price of oil... how could they NOT make a profit? you can get so much diesel out of a barrel of oil that its ridiculous. way more than you can get gasoline.
eaglev Champion Author Oklahoma City Posts:1,212 Points:376,800 Joined:Jul 2005	Message Posted: 12/4/2008 8:50:32 AM	Ignore eaglev Report Abuse
	Just a few days ago they said that the refineries were making more money now than they were when the price was over $140.
94Vol Rookie Author Nashville Posts:49 Points:16,330 Joined:Nov 2008	Message Posted: 12/4/2008 8:50:26 AM	Ignore 94Vol Report Abuse
	If they do sell it hopefully someone will do some upgrades and watch the bottom line a little closer.
napermike79 All-Star Author Twin Cities Posts:745 Points:433,755 Joined:May 2001	Message Posted: 12/4/2008 8:49:28 AM	Ignore napermike79 Report Abuse
	this is not good news
bethel41 Rookie Author Kansas City Posts:43 Points:35,120 Joined:Oct 2008	Message Posted: 12/4/2008 8:49:01 AM	Ignore bethel41 Report Abuse
	poor chevron.
JPGKC Champion Author Tampa Posts:3,391 Points:613,700 Joined:Sep 2006	Message Posted: 12/4/2008 8:48:46 AM	Ignore JPGKC Report Abuse
	The Arabs want the business but only in their own back yard.
stadlgi All-Star Author Akron Posts:967 Points:880,855 Joined:Jun 2004	Message Posted: 12/4/2008 8:48:38 AM	Ignore stadlgi Report Abuse
	Venezuala would gladly buy them ... then shut them down in order to further their twisted Marxist dream of hurting the U.S.
Lukus Veteran Author Halifax Posts:478 Points:110,510 Joined:Nov 2007	Message Posted: 12/4/2008 8:48:34 AM	Ignore Lukus Report Abuse
	They took all the profits years and probably cut back on maintenance and now they want to get out.
Zinnoil Champion Author Illinois Posts:13,532 Points:1,561,320 Joined:May 2004	Message Posted: 12/4/2008 8:48:13 AM	Ignore Zinnoil Report Abuse
	Valero has had 1/3 of theirs up for sale for some time.
10pennypincher All-Star Author St. Louis Posts:527 Points:240,050 Joined:Jan 2007	Message Posted: 12/4/2008 8:48:12 AM	Ignore 10pennypincher Report Abuse
	wasnt it just a few months ago that everyone was screaming that there weren't enough refineries!!
TeachR06 Champion Author Raleigh Posts:1,214 Points:520,710 Joined:Sep 2006	Message Posted: 12/4/2008 8:48:01 AM	Ignore TeachR06 Report Abuse
	Most businesses have been cutting costs.
taco40 Champion Author Washington Posts:2,917 Points:504,100 Joined:Apr 2006	Message Posted: 12/4/2008 8:42:54 AM	Ignore taco40 Report Abuse
	And who wants to buy them?
bluebird1 Champion Author Toronto Posts:7,589 Points:1,543,995 Joined:May 2004	Message Posted: 12/4/2008 8:42:25 AM	Ignore bluebird1 Report Abuse
	Big Oil never did show much for longterm planning...those that own retail outlets are selling them since profit is lower, now refineries ....what's next???
Dennis783 Champion Author Wisconsin Posts:5,823 Points:1,166,545 Joined:Sep 2005	Message Posted: 12/4/2008 8:42:14 AM	Ignore Dennis783 Report Abuse
	Poor Chevron
Retowered Champion Author Colorado Posts:1,222 Points:1,127,795 Joined:May 2004	Message Posted: 12/4/2008 8:42:13 AM	Ignore Retowered Report Abuse
	To bad for they, but they could buy out the Big three. and make more money. Or give them a loan.
Manolo1 Champion Author Miami Posts:1,246 Points:293,975 Joined:Jun 2007	Message Posted: 12/4/2008 8:38:58 AM	Ignore Manolo1 Report Abuse
	How about a more long term view?
wank92 Rookie Author Maryland Posts:44 Points:23,710 Joined:Sep 2006	Message Posted: 12/4/2008 8:38:14 AM	Ignore wank92 Report Abuse
	I really wish they didn't post stories like this, cause it just makes me pissed. Am I supposed to feel sorry, or throw a party at my house? BYOB!
rockinrog Champion Author Ontario Posts:1,058 Points:724,305 Joined:May 2006	Message Posted: 12/4/2008 8:37:22 AM	Ignore rockinrog Report Abuse
	I feel so bad for them....NOT!

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