Steady_T says JBII's purchase of the blending facility was an insightful strategic acquisition

It appears that the lesson of Somerset refinery was missed by some.

Somerset was shut down because they were unable to obtain sufficient raw materials to operate the facility.

Someset was willing to pay higher than the going rate for locally produced crude, but the big oil companies had locked up the wells in the area. Someset was put out of business by anti competitive forces not by market forces.

JB is buying a blending facility to provide leverage in dealing with the much larger companies in the fuels biz. By being able distribute his own product if required, JB is not at the mercy of local refineries and can't be held hostage like Somerset was.

Buying the blending facility is not so much about increased profits as it is a strategic investment in survival options for the company. The fact that it will be a profit center is nice but not the real purpose of the acquisition.

Seems like an insightful action on JB's part.