By Paul Sankey
Published on August 9, 2026 at 9:02 PM
Valero CFO Homer Bhullar said on our Thursday call, with the Valero stock close to all-time highs: “Our mid-cycle is set by hydroskimming”. Homework today is running with that unit’s global economics. The data says that US/North American refining is running at max capacity ~95% utilisation Ergo, with no marginal US refining, Valero’s midcycle is set by European hydroskimming. We argue that the stock is currently discounting hydroskimming margins sustained at $4/bbl (if you require …
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By Paul Sankey
Published on September 24, 2025 at 4:05 PM
Greetings from London, Landed yesterday. Travel in from Brooklyn was fine; Tuesday morning “Chairman’s flight” is a breeze in premium economy and makes a mockery of the $4,000 beds up front in “Mint” class on JetBlue. Happy New Year: Rosh Hashanah might have made Tuesday double quiet. The row in front of us was empty if, during the day, we needed a bed. You take the 9am flight from JFK and are in Central London …
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By Paul Sankey
Published on March 23, 2025 at 12:44 PM
Concepts in United States Isolationism Feeling very British, I apologise in advance for this longer more personal note that is less about oil, gas & energy than we typically endeavor, although as the US Energy Secretary would tell you, ultimately everything is relevant to energy, and vice versa. As comedian John Cleese said, a “Public School” Englishman, such as me, at dinner asks for the salt as follows: <Awkwardly raises finger, vaguely waves it> “Um… …
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