Message Font: Serif | Sans-Serif
No. of Recommendations: 1

It was both substantial heavy crude discounts and extremely high refining margins. Valero posts pricing information here:

If you look up 2007, in the column "LLS less Maya", you see numbers in the "15" range for 2007. Then if you look in the column "Conv 87 Gasoline less LLS" you see a value around 22. Thus for converting a heavy crude oil barrel into gasoline, they whould make "15" for the crude discount, plus "22" for the refining margin less their costs per barrel. I do not remember what those were at the time but I recall it was calculable from their 10-k filing.

If you look at these two metrics, 2011 was a pretty good year. Of course at the moment, refining margins are pretty bad (which they seem to always ben in Dec/Jan).

If you see these numbers move up, and not the corresponding run-up in price, its time to load up. At the moment---kind of indeterminate.

long VLO
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.