The combination of approximately 90 petroleum refining companies in the U.S. generate about $700 billion in revenue, include majors like Chevron (NYSE:CVX), ExxonMobil (NYSE:XOM) and BP (NYSE:BP).
Close to 60 percent of all refining capacity in the U.S. is held by the eight largest refiners, according to a report from Research and Markets.
The annual revenue generated by the industry is volatile, and dependent on the average price of oil throughout the year.
Surprisingly, location is a big factor in the competitiveness of smaller refiners, who can are able to go head to head with their larger competitors if they are run well and are in the right markets.
Specialty products is also a key element of the success of the smaller refiners.
Operational costs are relatively low because of the industry being largely automated, with annual revenue for each worker coming in at over $7 million.
Larger operations can and do compete on scale, although operational costs are important, as in all businesses.
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Why does this nonsense come up on the google finance news feed for BP?
ReplyDeleteThis is about as accurate and relevant to the BP situation as the big brown turd I squeezed out of my cheeks the morning after curry night!