O'Malley back in the US, looking for acquisitions

He calls himself a "builder" of companies and that's exactly what he is. Anyone looking to pick up refinery assets in the US -- in competition with O'Malley -- should be concerned about his return.

His new $2 billion venture, called PBF, is backed by Blackstone and First Reserve and looking to create the next US refining independent. Unlike others who may get caught up in the credit squeeze and struggle to find some money to borrow, O'Malley can put his money where his mouth is.

He says he likes plants that are "big," "beautiful" and "well located." While some of those may be on the market in the States, why buy now?

O'Malley sees the US recession as a short-term issue that shouldn't get in the way of a good deal. He told reporters on the sidelines of the Hart energy conference in San Diego last week that the pre-Presidential campaign frenzy will make turning the economy around an even bigger priority for legislators. He noted the influx of immigrants will put a floor on any recession-induced decline in energy demand.

At this point, O'Malley has several assets to choose from. Valero Energy has plants for sale and there was talk at last week's National Petrochemical and Refiners Association meeting that bidding on the plants was heating up.

PBF has been expected to bid on Valero's Paulsboro, New Jersey refinery to work the arbitrage across the Atlantic Ocean with its European plants; however, an industry source told Platts PBF has instead shown up as a potential buyer for Valero's Memphis, Tennessee plant. Despite some of the head-scratching over PBF's interest in that plant, NPRA participants said they'd never bet against O'Malley.

"I think you would be hard-pressed to find anyone who ever invested in one of the actively managed companies that I've had, or who invested with me, who lost money," said O'Malley.