Garland agrees that the price differential will collapse.
Since then the two companies have traded pretty much in tandem.
Garland seems to be of two minds on selling Seaway.But I have some lingering misgiving about Phillips.Smaller oil drillers across the Midcon pleaded (sometimes angrily) with ConocoPhillips to reverse the direction of Seaway in order to evacuate the Cushing crude, but they casino cosmopol vinstutbetalning wouldn't.The bottleneck that kept oil from getting out of Cushing also kept its price at a record-wide discount relative to its rival European benchmark Brent crude.Garland, in our interview, made a point of emphasizing that Phillips 66 "wants to increase our margins by capturing advantaged feedstock" which means he wants to find more cheap crude for his refineries.So what's a new Phillips 66 shareholder to do?(Compare that with the likes of ExxonMobil, which last year scored returns of capital.5 from the upstream and 19 from downstream.).One plan to do that involves extending rail lines to haul crude-filled tanker cars out of the Bakken shale.Marathon Oil, the upstream side, trades at 12 times earnings, versus just 6 times for Marathon Petroleum, the refiner.It's not going to be 20 forever.".Refineries have closed or are for sale right now, a reaction to lower gasoline demand from American drivers and the rampant additions of ethanol to the fuel supply.But really, how good could those opportunities be if they haven't been pursued already?
Those joint ventures do have some good growth projects: like 6 billion in new pipeline construction to serve booming shale plays, a new plastics plant being completed in Saudi Arabia, and a new 5 billion ethane cracker planned for the Gulf Coast.