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Hollyfrontier Case

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The HollyFrontier is an independent petroleum refining company located in the United States. The refinery operations of the company serve the Mid-Continent, Southwest, and Rocky Mountain regions. The company own and operate five complex refineries which have a combined oil processing capacity of 443,000 barrels per stream day. The company produces high-value refined products, such as diesel fuel, gasoline, jet fuel, liquid petroleum gas, fuel oil, specialty lubricant products (lubricant products include oil and wax), and specialty and modified asphalt. The company owns and operates complex refineries and supporting infrastructures including warehouses, office buildings, maintenance shops, laboratories, utility facilities, and waste water plants; …show more content…

HollyFrontier compete with a broad range of refining companies, including multinational oil companies including Valero Energy Corporation, Marathon Petroleum Corporation, Philips 66 Company, Chevron Corporation, Royal Dutch Shell Corporation, Tesoro Corporation, BP Corporation, and the biggest competitor Exxon Mobil Corporation with a market share of 16%. Because of their geographic diversity, larger and more complex refineries, integrated operations and greater resources, some of the competitors may be better able to withstand volatile market conditions, to obtain crude oil in times of shortage and to bear the economic risks present in all areas of the refining industry. HollyFrontier is not engaged in petroleum exploration and production activities and is not producing any of the crude oil feedstocks at its refineries. Also, the company does not have a retail business and because of that is dependent upon others for outlets for its refined products. Certain numbers of HollyFrontier competitors, however, obtain a portion of their feedstocks from company-owned production and have a retail outlets. Competitors that have their own production or widespread retail outlets, with brand-name recognition, are at times able to

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