Similar to MMEX stock, opinions are worth very little - especially in the face of fact.
Refining, and distribution of refined hydrocarbons is a complex, capital-intensive business. Refining is a high-volume, low-margin business, profitable at sufficient scale, and with sufficient flexibility in product mix to meet and match market needs.
Fuel distribution is regionalized, for blend, volume, and demographic needs.
MMEX has completely failed to recognize this.
The existing PADD III inland refineries already meet regional needs, with a surplus, especially in light fractions like gasoline.
The PADD III coastal refineries have sufficient complexity (Nelson Index is a good reference), scale, and flexibility to meet domestic use, as well as export needs - this is why the crude is being shipped (ultimately by pipeline) to the PADD III coastal refineries.
The economics and infrastructure aspects of this business are pretty well understood, and highly developed after more than a century of evolution in the sector. MMEX fails utterly on all counts - entry into the sector on a “phased” approach cannot succeed, and entry into the sector with a small-scale, low-volume refinery (proposed Phase II) cannot succeed - the lack of blending capability, failure to understand the RIN credit market, etc. are all fatal, guaranteeing MMEX cannot succeed.
The refining sector specifically has been undergoing consolidation, and significant change - fewer refineries, operating with greater efficiency, and increases in feedstock consumption, and refined product output, meeting market demand is the contemporary theme. If there were a legitimate need, and business opportunity for another inland PADD III refinery in the Permian, a legitimate company, with access to legitimate capital markets would already have built it - a clown-show like MMEX, which is clearly a fraudulent share-selling scheme has no chance.
When you are dead, you don't know that you are dead. It is difficult only for others. It is the same when you are stupid.
