Former East Texas boom town getting new refinery

Fuel Fix ^ | August 6, 2012 | Associated Press

[thackney]

The refinery will be on a site off Texas Highway 323, 1.25 miles southeast of New London. Current processing equipment in Longview will be relocated to Rusk County, upgraded and restarted.

Plans for the project, which has been in the works for about 18 months, are to produce 30,000 barrels per day of light sweet crude and produce gasoline and diesel fuel.

“The basic concept of that project is to take crude oil that is relatively local and available and produce gasoline and diesel as a result,” said Kelley Holcomb, general manager for the Angelina and Neches River Authority, the conduit bond issuer for the project.

An estimated 300 to 400 jobs will come to the area during the approximately two-year construction period, and up to 85 high-paying, full-time jobs are expected at the site when the refinery is operational. During the next decade, the economic impact of the project is estimated at $8 billion, according to a presentation made earlier this year. The immediate economic impact, including construction and sales tax on local materials, is estimated at $384 million.

[thackney]

We NEED new refineries.

Actually, we already refine more petroleum product than we use. The US refinery capacity exceeds the refined petroleum product demand.

U. S. Operable Crude Oil Distillation Capacity
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WOCLEUS2&f=4
17.23 million barrels per day (MMBPD)

U.S. Product Supplied of Finished Petroleum Products
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTPUPUS2&f=M
16.54 MMBPD

Sometimes you will see a larger number used describe US petroleum use (18.71 MMBPD), this includes natural gas liquids and exceeds the refined portion.

Breakdown of US Petroleum Product Supplied
http://www.eia.gov/dnav/pet/pet_cons_psup_dc_nus_mbblpd_m.htm

What we need most is an increase in our domestic oil production. We still import more crude oil than we produce ourselves.

US Crude Oil Production
http://www.eia.gov/dnav/pet/pet_crd_crpdn_adc_mbblpd_m.htm
6.27 MMBPD

U.S. Crude Oil Imports by Country of Origin
http://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_epc0_im0_mbblpd_m.htm
8.91 MMBPD

The decades of expanding and upgrading our existing refineries, combined with our reduced domestic demand, raised our refinery capacity above our demand a year or so ago. It is far cheaper to expand an existing refinery than build a new one. And it is far easier to get expansion permits than new ones.

[PAR35]

$186,327,000 million dollars

$186,327,000,000,000.00? That's a pretty big number. How does that compare to the country's GNP?

[thackney]

Good catch, looks like the million description does not belong.

[Eye of Unk]

Tell me about it, I lived in Houston in the early 80’s, and then moved to Alaska.

I know Longview fairly decently, I lived in Marshall just south of it for an oil drilling company in 1984, not a bad place to live, living there is dirt cheap. Wages suck though.