This article is over 12 years old

Business

Thursday PM January 13th, 2011

Marathon Oil Corporation announced it is spinning off its refining business to form a new company. Andrew Schneider reports.

Listen

To embed this piece of audio in your site, please use this code:

<iframe src="https://embed.hpm.io/74434/25114" style="height: 115px; width: 100%;"></iframe>
X
Marathon Petroleum

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.

Today in Houston Newsletter Signup
We're in the process of transitioning services for our Today in Houston newsletter. If you'd like to sign up now, fill out the form below and we will add you as soon as we finish the transition. **Please note** If you are already signed up for the newsletter, you do not need to sign up again. Your subscription will be migrated over.
Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew Schneider is the senior reporter for politics and government at Houston Public Media, NPR's affiliate station in Houston, Texas. In this capacity, he heads the station's coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments...

More Information