Somerset oil refinery up for auction
photo credit: Number Six (bill lapp)Given the unpredictable nature of the market in many regions this year, what’s the most adventurous deal at the top of your list at the moment? Semi-detached house in the north-east of England? Apartment in Abu Dhabi? Condo in Miami?
How about a 5,500 barrel-per-day petroleum refinery situated on approximately 105 acres in the middle of Kentucky, US? That’s exactly what auctioneers Tranzon are selling, following a bankruptcy order on the site, known as Somerset Refinery, Inc, and Somerset Oil, Inc.
Big bucks per barrel
Ok, so the final bid will probably stretch into millions of dollars but it does represent one of the few big-return guarantees in the global real estate market. Why exactly? Because crude oil is currently hovering around the $116 a barrel point, having been about $59 a pop as recently as 2006.
Well running dry
The only catch here is that oil is running dry pretty much everywhere, meaning while prices may soar in the short-term, the long-term problem is that within 10 years there may be very little left in the US to refine.
Still, the black stuff is not the only thing up for auction at Somerset. Along with 105 acres of land, the package also includes more than 100 vehicles including trucks, tankers and company cars – perfect for sending all your new employees out to find more oil when the taps finally stop dripping. Personally, I think I’ll be sticking to buying a house or two in Derbyshire this year. I’ve already seen ‘There Will be Blood’ and have no intention of turning it into a documentary.
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