Pentagon Places Orders for $2.3 Billion in Jet Fuel

By Rich Smith – Jun 25, 2013 at 9:36PM

Most major oil companies are recruited to slake the Pentagon's thirst for oil.

The Pentagon needs fuel. Fortunately, it's found a few companies willing to slake its thirst for oil.

On Tuesday, the Department of Defense awarded some $2.3 billion worth of contracts for "aviation turbine fuel." Most of the major oil and refining companies came away with contracts, including:

Royal Dutch Shell (NYSE: RDS-A) subsidiary Equilon Enterprises, which claimed the largest award at an estimated $474.1 million in maximum value.
Valero (VLO +3.32%), winner of a nearly as large contract valued at up to $456.4 million.
ExxonMobil (XOM +1.30%), winner of a $405.1 million contract.
Chevron (CVX +1.31%), which won $391.4 million.
Western Refining (WNR +0.00%), awarded a $268.7 million supply contract.

In addition, four other, smaller companies also won contracts. All nine contracts state June 30, 2014, as the deadline for delivery.

About the Author

Rich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”

TMFDitty

@RichSmithFool

About the Author

Premium Investing Services