I'm not up on the current situation with Ashland, but didn't they just sell off the rest of their interest last year in the M/A refinery in LA to Marathon. Doesn't sound too expansionist a philosophy.
It does for Marathon.
The oil industry is both consolidating (mergers, aquisitions) and modernizing their refining capabilities. Modernizing often includes an increase in their refining capabilities. These are not contradictory, although they may seem that way to some.