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Has the EPA Given Oil Refiners a Death Sentence?

By Tyler Crowe and Aimee Duffy - Apr 4, 2013 at 7:30AM

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New regulations on gasoline could put a dent in the recent spectacular run by refiners. How bad is it?

The Environmental Protection Agency just recently proposed new regulations for gasoline in the United States. The new rules would significantly reduce the sulfur, nitrogen oxide, and benzene content in conventional gasoline. Of course, this has sent the oil refinery business into a frenzy and many refiners are claiming that the regulations are too cost-prohibitive to enact. With big-time refiners like Valero (VLO -1.03%) saying that it will put a huge dent in their margins, it looks like this could be shaping into a fight between industry and governmental regulators.

Today, contributors Tyler Crowe and Aimee Duffy weigh in on the EPA's recent announcement. Despite the costs that may be associated with complying with new regulations, Tyler thinks that the reaction from investors has been a bit overblown because these regulations would not come into effect until 2017, and oil refiners are coming out of a period of all-time highs.  

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