U.S. Refiners From Exxon to Valero Have Edge Ahead of Ship Rule
U.S. Refiners From Exxon to Valero Have Edge Ahead of Ship Rule
(Bloomberg) -- Exxon Mobil Corp., Marathon Petroleum Corp., and Valero Energy Corp. are among the refiners that may stand to gain the most from tougher impending rules for the world’s shipping fleet.
That’s because America’s refining system has the biggest capacity to turn crude oil into low-sulfur fuels, according to Jefferies Financial Group Inc. The nation’s yield of gasoline, jet fuel and middle distillate is 82 percent, compared with 63 percent globally, the bank said in a note to clients.
“The U.S. refining system has been built to take the heaviest feedstock and maximize the yield of clean fuels,” wrote Jefferies analysts led by Laurence Alexander.
From January 2020, vessels plying the world’s shipping routes will be required to burn fuel with less sulfur to help curb greenhouse gas emissions. The new rules are expected to benefit oil refineries around the world, which produce and sell so-called clean fuels.
To contact the reporter on this story: Chibuike Oguh in New York at coguh1@bloomberg.net
To contact the editors responsible for this story: Reg Gale at rgale5@bloomberg.net, Christine Buurma, Catherine Traywick
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