These are boom times for energy producers and tight times for refiners, but for integrated energy giants it's a whole lot of both.
Nowhere is that more evident than in China, where government-mandated price caps on fuel products have literally torched the once-formidable earnings of China's integrated energy conglomerates. China Petroleum and Chemical
Management expects continued high oil prices and pressure on the refining business for the remainder of 2008. Still, Sinopec and rival PetroChina
Zooming out, Sinopec reports that GDP in China rose 10.4% in the first half, and domestic consumption of refined oil rose 13.9%. For Fools who remain long commodities despite the recent sell-off, this provides welcome confirmation that a key source of global demand growth remains intact.
I have tracked the tribulations of U.S. refiners like Valero
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Fool contributor Christopher Barker captains yachts and writes about stocks. He can be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He owns shares of Valero and PetroChina. The Motley Fool has a disclosure policy.