Refining Update, Feb 2016

Wanted to pass along a few updates and tidbits of information that may shed some light on our specific niche in the O&G market – refining. For some of you I am sure this is remedial so disregard but I believe it helps to be knowledgeable of the core commodity that dictates the economics our clients operate within. As you will see below, the final chart truly depicts how low prices have fallen in less than 24 months. Of course refiners have built in margins  to ensure they operate profitably, however, a 10% margin at $3/gal ($0.30) is double that of a 10% margin at $1.50/gal ($0.15) or effectively cutting revenues in half for operators.

Below: A breakdown of the refining processes products per barrel of crude oil (this varies based on oil type such as heavy or light but provides a general overview for the industry)



Below: This chart represents the direct correlation between WTI Crude Oil (green) and two of its refined products gasoline (grey) and diesel fuel (orange) – note the prices of the refined products are always at a premium to the raw product as they take additional resources to produce.



Below: Current spot price (price consumers can purchase an immediate shipment of the finished goods) of the refined product gasoline (92.31 USd/gal.). This price is per 100 gallons therefore this amount is $0.9231 / gallon at cost prior to taxes, marketing, transportation costs that are added to the final price which consumers pay at the pump.



Jeremy Wilburn, Staffing Consultant

Filter Articles & Insights


Our monthly newsletters offer insight on industry trends, career planning and the job market as well as highlight featured job opportunities and industry events. If you’re interested in receiving our monthly newsletter, please complete the sign-up form below. 

IT Newsletter

This field is for validation purposes and should be left unchanged.

Technical Newsletter

This field is for validation purposes and should be left unchanged.


Staff Blogging

Why Busy Managers Still Need to Prep for Interviews

          Been There, Done That? Why Busy Managers Still Need to Prep for Interviews   As a seasoned manager, you’ve likely conducted countless interviews, sifting through resumes, assessing candidates, and making...

read more

Ghosting in the Interview Process

    Ghosting in the Interview Process: A Haunting Reality for Both Sides   The world of recruitment is facing a chilling phenomenon: GHOSTING. Just like in dating, candidates and hiring managers alike are disappearing without a trace...

read more