What's up at Marathon Oil Co.

Now that we’re a few months into this deal of higher gasoline prices and the search for alternate fuels, wonder what the Tri-State’s only refiner is up to? Here is some information lifted from Marathon news releases.

On July 10, Marathon Oil Corp. and The Andersons Inc. jointly announced they had signed a letter of intent which could lead to the formation of a 50/50 joint venture that would construct and operate a number of ethanol plants. The Andersons will provide day-to-day management of the ethanol plants, as well as corn origination, risk management, and dry distillers grain and ethanol marketing services. Site selection is expected to be finalized soon. The initial plant is expected to have a nameplate annual production capacity of 110 million gallons of ethanol.
Timing of construction is contingent upon selection, regulatory requirements, permitting and economic incentives.

This past Monday, Marathon and the Kentucky Clean Fuels Coalition jointly announced that Marathon will be adding storage and distribution of biodiesel fuel at the company's Kramer's Lane Terminal in Louisville. The Kentucky Clean Fuels Coalition (KCFC), the Kentucky Soybean Board and National Clean Cities, Inc. collaborated with Marathon to attract grants that helped enable the installation of the blending infrastructure.
"This is the first biodiesel storage and distribution project in Kentucky and Marathon's second biodiesel fuel location," said Gary R. Heminger, executive vice president of Marathon Oil Corporation and president of the Company's refining, marketing and transportation operations.
Biodiesel storage and distribution at the terminal is expected to be operational in the first quarter of 2007.

If I read Marathon's Web site correctly, the company will announce its second-quarter earnings on Tuesday, Aug. 1. On July 6, the company released a statement saying it estimates its refining and wholesale marketing gross margin for the current quarter will average approximately 29 cents per gallon. Take this next for what it’s worth, but that would mean Marathon’s profit on a gallon of gasoline would be less than what state and federal government takes in taxes.

I’ll have more on this after the earnings release. Marathon usually provides some pretty interesting information that I’ll be looking for.