Thursday PM January 13th, 2011
by: Andrew Schneider, January 13, 2011 10:01:00 pm
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Marathon Oil Corporation announced it is spinning off its refining business to form a new company. Andrew Schneider reports.
Under the plan announced this morning, Marathon’s downstream operations will split off effective June 30. It expects the new firm — Marathon Petroleum — to become the country’s fifth-largest refiner.
Barbara Shook, Houston Bureau Chief for Energy Intelligence Group, says the move reflects Marathon’s confidence that the refining industry is about to become a lot more profitable.
“It’s been down for the last few years but the refining is extremely cyclical, much more so than the upstream part of the industry is.”
The new firm will have its headquarters in Findlay, Ohio. That reflects holdings concentrated in the Midwest. But the spin-off will cost few local jobs, if any.
For more information, visit www.marathon.com.
Image from Marthion's website.