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BP p.l.c. Message Board

  • thegogetter222 thegogetter222 Jan 3, 2013 11:49 AM Flag

    Big oil $1.5B windfall from new fiscal cliff deal

    The blenders credit being retroactive through 2012 is a windfall to big oil who have already profited off the sale of the pump. The void of this $1 credit was NOT factored into their “cost” of fuel. The biodiesel industry sold 1.5B gallons throughout 2012, meaning the windfall is worth $1.5B to the oil industry. A $1.5B windfall that is unexpected, budgeted, with no strings attached for past sales through 2012. Simple logic is that this money is no good to biodiesel plants that closed in 2012 because of the “lapse.” Especially since the money goes to who blends the biodiesel, not who produced it… which is almost always their customer, big oil. Lots of adjusted earnings coming to the sector very soon.

    Source: I work for a very large US producer of biodiesel

    Sentiment: Buy

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