Please ensure Javascript is enabled for purposes of website accessibility

Has the EPA Given Oil Refiners a Death Sentence?

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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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, Fool.com 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.  

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Valero Energy Corporation Stock Quote
Valero Energy Corporation
VLO
$122.98 (-1.03%) $-1.28
HollyFrontier Corporation Stock Quote
HollyFrontier Corporation
HFC
Phillips 66 Stock Quote
Phillips 66
PSX
$93.79 (-1.62%) $-1.54

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
331%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.