Latest / Energy Economics with Fexingo: Oil Prices, Renewables, and the Cost of Power
Why US Refiners Are Thriving While Drillers Struggle
US oil refiners are running near full capacity and posting strong margins, even as crude oil production growth stalls. Lucas and Luna examine the structural mismatch: Permian drillers face cost inflation and investor discipline, while refiners like Marathon Petroleum and Valero benefit from strong export demand for gasoline and diesel. They unpack the economics of the crack spread, the impact of refinery closures on supply, and what this divergence means for energy investors. Specific data points: WTI crude around $70 per barrel, gasoline at $3.78 per gallon, and the widening spread between…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.