Among Refiners, Rivals' Loss Is Valero's Gain

Massachusetts investment strategist Peter Cohan expects refineries to keep performing strongly as well. He says that oil prices have clearly driven refinery profits higher so far. And he notes that some people now expect oil to hit $50 a barrel this year.

Cohan, for one, wouldn't be surprised if that forecast does hold true.

"It just seems to me that the forces pushing up the price of oil are unstoppable," he said.

Thus, Cohan expects the current "fear" premium on oil -- estimated at around $15 per barrel -- to at least remain intact. And he wonders whether companies like Williams and El Paso now regret selling "crown jewels" that have started turning huge profits for others.

In particular, Cohan portrays refineries -- which have actually spiraled in number over the past two decades -- as valuable and finite resources.

"They're not making refineries any more," he said. "So they look like absolute gold mines right now."

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