About Us
Covenant Moore Oil and Gas, Inc. has delayed having own refinery since starting business in 1991 because the business of turning crude oil into gasoline, jet fuel or heating oil has rarely been a lucrative proposition. It has dismal profit margins compared with its more glamorous cousin, exploration. It is highly cyclical and fairly unpredictable, because demand for gasoline swings sharply by season. And because of low oil prices over the past decades. The company’s attention is now directed towards refining because our survey research shows that more refining capacity will almost certainly be needed. Gasoline demand is forecast to rise 39 percent by 2025, to12.9 million barrels a day, up from today’s 9.3 million barrels, according to a long-term outlook by the Energy Information Administration. By then, gasoline alone will account for nearly half the crude oil consumed in the United States.
By contrast, domestic refining capacity is expected to grow only by 0.8 percent from 2005 to 2007, slightly less than the 0.9 percent increase registered between 1998 and 2004, according to Jacques Rousseau, an oil analyst with the investment banker Friedman, Billings, Ramsey.
Jay Sanders, Production expert with Covenant Moore Oil and Gas said that the increase in refining margins would lead to increased capacity. “The industry is definitely going to overbuild,” he said, “they have in the past and they will in the future.”
COVENANT MOORE OIL AND GAS, INC.
Facts AND Figures
- More than $540 million has been invested by the company in refineries in the last five years to improve its safety, reliability and profitability
- Total throughput capacity of all refineries with Covenant Moore interest2,074800 barrels per day (BPD)
- Products include a high-yield of finished distillate products and intermediate feedstocks
- Employs approximately 75 individuals
- Located on approximately 1400 acres
- Founded in 1991, some of the affiliated refineries has had significant upgrades
dating back to the 1940s.