The blaze that torched Chevron's 245,000 barrels of oil per day refinery is going to hit West Coast consumers in the pocketbook, with current estimates of $0.20 to $0.30 per gallon increases on their way. Chevron's Richmond, Calif., operation is responsible for 10% of the West Coast's refining capacity and without it demand for the remaining gasoline is going to soar. As investors, we are looking for other companies to step in and make sizable profits when opportunities arise. In this video, analyst Joel South talks about one refiner in particular that is positioned to increase its already profitable operations while Chevron scrambles to get its facility back into operation.
Both domestic and international crude prices have been rallying lately to the benefit of a number of levered energy companies. If you're on the lookout for some currently intriguing energy plays, check out The Motley Fool's 3 Stocks for $100 Oil. You can get free access to this special report by clicking here.
Austin Smith and Joel South have no positions in the stocks mentioned above. The Motley Fool owns shares of Western Refining. Motley Fool newsletter services recommend Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
