Oil Refining Is Not a Commodity Business

Oil refining may be a commodity business but it's got these local aspects to it. Different states have different requirements for how the gasoline or petroleum is to be produced. Tisoro bought that refinery they leveraged their balance sheet to buy that refinery and after they leveraged the balance sheet the crack spread narrowed to almost nothing. So their profits went to next to nothing at the same time when they had a huge amount of debt.