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U.S. Company Reports Profits Selling American-Made Gas
“There is no Mideast oil in our products” claims The United Refining Company, based out of Warren, Pennsylvania. The company pledges that 100% of the fuel it sells is refined from North American crude.
“We think Americans feel good about it,” says John Catsimatidis, CEO and chairman of the United Refining Company. “People drive by, and every time they get annoyed at… (Hugo) Chavez, every time they get annoyed at BP Petroleum, every time they get annoyed at the Middle East, you know what they say? ‘Why don’t I buy American oil and buy American-made gasoline?’ ”
The gas is sold at more than 300 stations in Ohio, Pennsylvania, and New York under the Keystone, Country Fair, and Kwik Fill brand names. The company pumps out approximately 70,000 barrels of oil per day via its facilities in Warren, PA, a town with it’s own 35 year old TransCanada’s Keystone XL oil pipeline.
URC has enjoyed record setting profits since it launched the “Made in America” marketing campaign, which heavily promotes its no-Mideast-oil guarantee. TV commercials proclaim the benefits, Kwik Fill stations have “Driving America” signs strung across their stores, and the slogan is even branded on many of the gas pumps. The Kwik Fill website highlights the company’s “buy American” approach:
The Kwik Fill / Red Apple convenience store chain is owned and operated by United Refining Company based in Warren, Pennsylvania. United Refining Company uses no overseas crude oil to produce its petroleum products. In fact, United Refining Company uses only 100% North American crude oil, and that oil is refined right here in Pennsylvania. When you buy United Refining Company gasoline at Kwik Fill, you can be assured that your money is not going overseas. This benefits 2300 Kwik Fill employees in NY, PA, and OH and the communities in which they, and you, live. By helping local businesses and economies, we keep jobs in America and keep America strong.
“Our businesses, our families and our future depend upon a strong America,” the brand’s motto proclaims. “Keep America strong. Buy American-made gasoline at Kwik Fill.” “That’s why I buy here,” Jan Potter, a Kwik Fill customer, told Fox News, “because it’s made in the U.S.A.” Ms. Potter says she is “one of the Americans upset about being so tied to other countries for oil and gas, and I would much prefer to buy American than from other countries.”
Since the “Made in America” campaign’s inception, United RefineryCompany’s sales have skyrocketed, cranking out profits for 27 consecutive quarters. Yahoo! Finance expounded on the company’s recent financial boom in an article published earlier this month:
Adjusted EBITDA(1) [earnings before interest, taxes, depreciation, and amortization] on a FIFO basis for the six months ended February 29, 2012 was $115.0 million , an increase of $83.3 million or 262.7% from $31.7 million for the six months ended February 28, 2011. For the second fiscal quarter ended February 29, 2012 the Company generated Adjusted EBITDA on a FIFO basis of $40.5 million, an increase of $11.8 million or 41.1% from $28.7 million for the three months ended February 28, 2011.
Mr. Catsimatidis says utilizing domestic energy sources, and sources from friendly neighbors offers greater price stability and less volatile supply for their customers. “What happens if Iraq gets bombed, or Saudi Arabia gets bombed, or Iran stops shipping?” he asks, adding that pipeline transportation is more efficient and less expensive than transporting oil on tankers across the ocean.
Producing petroleum based products here is “going to make prices lower,” Chicago-based oil analyst Phil Flynn declares. Mr. Flynn asserts that producing and selling strictly U.S. and Canadian oil products means “you don’t have to ship oil from the Middle East, you don’t have to worry about an Iranian war premium, you can produce oil at home, or in Canada, and that is going to keep the price of gasoline down… bottom-line, is that when it comes to gasoline prices, more domestic production over the long run is going to lower gasoline prices.”
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