The Valero Energy/Chevron Pembroke refinery deal

Chevron Corp.’s “notably higher” quarterly profit bodes well for other international energy producers also grappling with oil-production and refining challenges.

Michael Filloon submits: Valero (VLO) is the world's largest independent refiner. It is comprised of 14 refineries and 2.6 million barrels per day of throughput capacity. The average throughput capacity per refinery is 185000 barrels per day. Its 5800 branded market sites is one of nation's largest fuel retailers. Valero is also one of the nation's largest ethanol companies.

Submitted by Keith Schaefer of OilPrice.com, Some call it the “holy rail.” In Alberta Canada, an estimated 120,000 barrels of oil per day are shipped out by train to the U.S. east coast and Gulf coast region. By the end of the year - when several terminals are completed - that number could reach 200,000 barrels a day.

Valero Energy Corp has secured U.S. government permission to ship U.S. crude oil to Canada, joining other companies seeking to do the same in light of rising output. Chief Executive Bill Klesse told analysts last week that Valero has the required license from the U.S. Commerce Department to ship Texas crude from Corpus Christi to its refinery in Quebec City, and aims to do so this summer.

Valero Energy Corp has secured U.S. government permission to ship U.S. crude oil to Canada, joining other companies seeking to do the same in light of rising output. Chief Executive Bill Klesse told analysts last week that Valero has the required license from the U.S. Commerce Department to ship Texas crude from Corpus Christi to its refinery in Quebec City, and aims to do so this summer.

Canada’s independent oil producers may face months of depressed earnings and weak share prices as they jockey for space on the country’s over-full oil pipelines. The independents, companies that focus on producing oil and gas and have no refining or marketing operations, are being squeezed by a shortage of export capacity as rising heavy oil production from the Alberta oil sands strains pipeline capacity, trapping oil in Canada and pushing down prices.

About this author: Visit Socratism Valero Energy (VLO) is one of the largest U.S. based refineries. Like much of the industry, the increase in oil prices has boosted Valero's throughput margins, making it, along with the industry, more profitable. Valero, in this sense, has a satisfactory position.

By Robert Broens: Shares of Tesoro Coporation (TSO) rose 9.5% in Monday's trading session. The independent petroleum refiner and marketer announced the acquisition of BP's Southern California Refining and Marketing business. The Details