Post by
ztransforms173 on Nov 03, 2023 9:44am
With TMX On STREAM, The ECONOMICS GET WORST For PSX @ WRB
- that is WHY PSX is SELLING their 50% interest in WRB Refining
- the TMX OPERATING pipeline will SUPPRESS the WTI/WCS PRICE DIFFERENTIAL and MAKE the HEAVY OIL FEEDSTOCK into WRB Refining MORE EXPENSIVE
- this REDUCES the LOWER PRICED FEEDSTOCK ADVANTAGE that the TWO COMPLEX refineries Wood River and Borger have
- for CVE, this is LESS OF A PROBLEM as they CAPTURE the FULL VALUE of the HEAVY OIL BARREL
- the ANTICIPATED STARTUP of the TMX pipeline in Q2/2024 FORCES Phillps66 to EXIT the WRB Refining JV as they can DEPLOY their CAPITAL ELSEWHERE and GET a GREATER RETURN on their INVESTMENT
- Phillips66 was a FANTASTIC PARTNER {WORLD CLASS refinery operator} for Cenovus Energy and they made MASSIVE OPERATING MARGINS in their BENEFICIAL RELATIONSHIP while it lasted (especially since the ORIGINAL Cenovus Energy at the START of the JV had NO SKILL in OPERATING REFINERIES and the refinery business is HIGHLY CAPITAL INTENSIVE)
z173