Archive for March 2022
Value of octane hits all-time high
The value of octane in the United States just hit an all time high of 12.6 cents per octane-gallon: For decades, premium gasoline cost 3 cents/octane-gallon more than regular, meaning we paid 18 cents/gallon for a 6 octane difference (93 octane premium – 87 octane regular), on average, at the pump. That has now quadrupled…
Read MoreRefining catalysts True or False?
About refining catalysts: True or false?1) The market share leader has the best catalysts2) You can rely on vendor data3) Catalyst performance has tripled in the last 15 years4) Engineers resist change5) Procurement people are bean-counters6) Catalysts are chosen to maximize profitability7) Catalysts choice must be customized for each unit8) If unit performance is bad…
Read MoreUpdate on the MPC-PSX stock price spread
Throughout 2021 and 2022, I have been tracking the difference in performance of Marathon Petroleum (MPC, green) and Phillips 66 (PSX, red) stock. The first blog post, from Dec 8, 2021, showed the difference being 60% gain for MPC versus 1% gain for PSX. The S&P 500 index is shown for reference: Now, 100 days…
Read MoreDo refiners buy catalysts on relationships or economic value?
Which would a catalyst sales person rather have: a strong personal relationship with the key decision maker, or the catalyst offer with best economic value? I have asked this question of 100+ catalyst sales people. Most say they’d rather have the personal relationship because it has more impact in affecting sales. Having worked my entire…
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