Skip to comments.ConocoPhillips seeking buyer for Pa. refinery
Posted on 09/27/2011 7:11:35 AM PDT by thackney
ConocoPhillips is seeking a buyer for a Pennsylvania refinery and its associated pipelines and terminals, the company said this morning.
The company plans to idle the Trainer, Pa. refinery until a buyer is found and will permanently close the refinery if the company fails to find a prospective buyer.
After exploring a wide range of alternatives for the refinery, the decision to sell is based on the level of investment required to remain competitive, said Willie Chiang, senior vice president of Refining, Marketing, Transportation and Commercial. U.S. East Coast refining has been under severe market pressure for several years.
Chiang attributed the market pressure to the cost of product imports, weak gasoline demand and costly regulations. He added that selling the refinery was consistent with the companys strategic objective to reduce its refining portfolio.
ConocoPhillips has already notified employees and contractors of the idling and potential closure of the refinery, and the company hopes to redeploy employees to other positions within the company.
Employees who are not redeployed will receive severance benefits and job placement services.
The company expects to recognize a non-cash asset impairment of approximately $300 million after tax in its third-quarter financial results.
I show 75,400 bbl/day crude capacity.
Is this right ?
If the refinery is extremely old and outdated, then it should be demolished.
If it can be rehabilitated, the upside potential is massive.
They have found possible oil in the Utica Shale that could change the entire landscape in Western PA and Eastern OH.
I find it listed as 185,000 BPD capacity.
In a sane world, the states and feds would control refining and make it a matter of strategic defense and economic development to drill everywhere possible and refine to the point of surplus.
Instead, we’re cutting off our legs and hoping to remain competitive and secure internationally.
Original age of the refinery really doesn’t matter. We have refineries that started about 100 years ago that are modern operating units.
Trainer receives crude oil by tanker from West and North Africa and Canada. The refinery facilities include fluid catalytic cracking, hydrodesulfurization units, a reformer and a hydrocracker that enable it to produce a high percentage of transportation fuels, such as gasoline, diesel fuel and jet fuel. Other products include home heating oil and low-sulfur fuel oil. Refined products are primarily distributed to customers in Pennsylvania, New York and New Jersey via pipeline, barge and railcar.
I saw the 185,000 number but right next to it is 75,400 crude.
Likely they are referring to the Vacuum unit but in stream days instead of calendar.
A typical refinery in "simple" terms may look something like:
Each unit has different capacities. The total refinery is usually described in capacity of the first unit, the atomspheric distillation.
I would describe government control of our refining an insane world.
My former employer was hot to buy an east coast refinery back in the 80s but decided against it, primarily because of the union issue. Imports were not as big an issue then.
Thomas OMalley, Michael Gayda, Jeffrey Dill, Ed Jacoby, Ken Isom and James Yates have joined up under the name PBF Energy. All were part of Premcor.
They would be my guess to buy it. They bought the Delaware City and Paulsboro refinery back from Valero. They bought the Toledo refinery from Sunoco.
Perhaps “control” is too strong a word or simplification. Although there is no denying the feds already control the means of production even if they don’t own the apparatus.
Mining, drilling, distilling, refining - this nation has massive reserves and resources and the government seems hellbent on shutting them all down. We should be selling “dirt” on the international markets to fund physical infrastructure and cutting taxes to the bone to lure international firms here. Creating jobs isn’t really any more difficult than that.
As for oil and gas, forty years ago we had the 7 Sisters, those 7 western private sector oil companies that controlled most of the world oil. Today the 7 Sisters are National Oil companies.
Exxon, measured on reserves and/or amount of oil produced, ranks 8th behind 7 national oil companies, but measured on sales and/or profit, Exxon is #1.
As for refining, gasoline usage in the US has peaked and will continue to decline so to keep our refining capacity up we will have to import oil, refine it, and export it. Which is one of the reasons for the Alberta pipeline being considered.