The news of EPA gasoline regulations hit oil refiners hard ... really hard. Almost all of the major refiners have seen a share price decline by over 10% in the past couple of days. Obviously, the capital expenditures that would be required for such a project would take a bite into earnings; but there is a light at the end of the tunnel.
In this video, Fool.com contributor Tyler Crowe looks at how stricter regulations could end up being a win for these companies. As U.S. gasoline use declines, and overall domestic production increases, more and more of these refiners will look to export refined products to premium markets abroad. With these new EPA regulations, gasoline produced in the U.S. will meet the higher standards for gasoline quality in several markets across the globe, making U.S. refined products that much more desirable.
Fool contributor Aimee Duffy has no position in any stocks mentioned. Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow them both at Fool.com under the handles TMFAimeeD and TMFDirtyBird.
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