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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Ed Ajootian who wrote (40454)	3/20/2005 5:24:19 PM
From: energyplay	Read Replies (1) of 206113

With the wide spread and heavy, sour crude being much cheaper than WTI, the complex refineries that can handle heavy crude are making money like mad. A complex refinery that has costs of say $4.00 per barrel is a good deal with $50 oil and a $14 spread. When energy demand drops, and light sweet oil now goes for $15 a barrel, you want to have a simple refinery with maybe <$2 per barrel cost. A complex refinery usually can be set up to do a good job turning a large % of heavy crude in motor gasoline, often a larger % than a very simple refinery. Complex usually means you can crack big molecules to small one and re-form small ones into big ones until you get what you want. The above is WAY over simplified. When I read books on refining, my head hurts....;-)

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