Valero Energy's Lesson: Markets Don't Stay Bad Forever

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.

Jim Van Meerten submits: Western Refinery (WNR) is a company that does it all from refining and distribution to wholesale and retail selling of everything from asphalt and gas to beer, bottled water and snacks. Investors and the press are really taking notice and the price is really moving.

Andrew Wilkinson submits: SunTrust Banks, Inc. (STI) – Shares of the financial services holding company are trading up 3.10% at a new 52-week high of $26.62. The SunTrust name was put in the frame on Tuesday when stories emerged that Britain’s Barclays Bank was on the prowl for an affordable U.S. bank with substantial deposit base.

ByWilliam Mook:The chart above shows the number of refineries and their output in North America over time. Its clear following the 1970 oil shock that major integrated oil companies have not invested in refineries. This gave rise to the independent refiners as an important resource in the US. Over half of the refining capacity is now owned by independent refineries. The two largest are;

One big story of 2011 was the United States switched from being a net importer to a net exporter of petroleum products. Here are the details behind that development.

By EconMatters: Valero Energy Corp. (VLO) shares dived almost 8% on Monday, Oct. 31 to $24.65 after India's Reliance Industries said it has no plans to buy Valero. Stock price of Valero had surged 22% in 3 days after U.K. newspaper Daily Mail reported on Wed. Oct.

Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.This post is a guest contribution by Dian Chu, market analyst, trader and author of the EconMatters blog, and Bob van der Valk, a petroleum industry analyst with 50 years’ experience.

James Shell submits:Now that we know that Valero (VLO) is looking to be pretty successful with their investment in ethanol, the next question is: If Valero, or anybody else, wanted to expand their capacity, would they be better off to do it in ethanol, or in conventional refining capacity?Here is a little pro forma analysis of an investment in a greenfield oil refinery versus a new ethanol plant: