Has the EPA Given Oil Refiners a Death Sentence?
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 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.
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The article Has the EPA Given Oil Refiners a Death Sentence? originally appeared on Fool.com.Fool contributor Aimee Duffy owns shares of HollyFrontier. 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, respectively.The Motley Fool has no position in any of the stocks mentioned. 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.
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