FACTS: Which U.S. refineries have shut since the global pandemic, and why?
Since the onset of the global pandemic, the US has lost nearly 1 million barrels per day of oil refining capacity, with more set to be shuttered in the next few years.
These are the plants:
1/x
LYONDELLBASELL HOUSTON:
CAPACITY: 263,776 barrel-per-day (bpd)
Lyondell said in April of 2022 that it would permanently shut the refinery by year-end 2023, as it was unable to find a buyer and did not want to invest to keep the facility open.
2/X
PHILLIPS 66 ALLIANCE, BELLE CHASSE, LA.
CAPACITY: 255,000 bpd
Phillips 66 said in November 2021 that it would not reopen the Alliance refinery, which was shut in mid-August ahead of Hurricane Ida. The 50-year-old refinery was severely damaged by several feet of water
3/x
LIMETREE BAY, ST. CROIX, USVI:
CAPACITY: 210,000 bpd
Limetree Bay Energy shut its St. Croix refinery due to financial problems in May 2021 after only operating for a few months, due to setbacks and environmental hazards. The refinery had already been idle for a decade.
4/x
SHELL CONVENT, ST. JAMES, LOUISIANA
CAPACITY: 240,000 bpd
Shell announced in November 2020 it would be shuttering the refinery after attempts to sell the plant between July and October were unsuccessful. The refinery became unprofitable as COVID-19 spread across the US.
5/x
Marathon said in August 2020 that it would permanently close plants due to lower fuel demand.
Martinez should produce 260 mln gallons/yr of renewable diesel starting in 2023.
6/x
PHILLIPS 66 RODEO, CALIFORNIA
Capacity: 120,200 bpd
U.S. refiner Phillips 66 plans to fully convert its Rodeo, California, crude oil refinery into a renewable fuels plant using cooking oil and food wastes beginning in 2024. It will cease processing crude oil.
7/x
HOLLYFRONTIER, CHEYENNE, WYOMING
Capacity: 52,000 bpd
HollyFrontier said in June 2020 it would convert its Cheyenne refinery into a biofuel plant that would produce 6,000 bpd of renewable diesel. The plant ceased operations the next month.
8/x
CALCASIEU REFINING - LAKE CHARLES, LOUISIANA
Capacity: 135,500 bpd
Calcasieu Refining shut its Lake Charles plant in early August of 2020, according to the Louisiana Department on Environmental Quality, citing demand loss during the pandemic.
9/x
PBF ENERGY - PAULSBORO, NEW JERSEY
Capacity: 180,000 bpd
PBF Energy shut most fuel units of its Paulsboro plant in November 2020 citing low fuel demand during the coronavirus pandemic. The plant has since restarted some secondary units but cited lack of VGO as inhibitor.
10/10
• • •
Missing some Tweet in this thread? You can try to
force a refresh
GLOBAL EXPLAINER: Why is there a worldwide oil-refining crunch?
Drivers around the world are feeling pain at the pump with fuel prices soaring, and costs are surging for heating buildings, power generation and industrial production. Here's why:
1/x
Prices were already elevated before Russia invaded Ukraine on Feb. 24. But since mid-March, fuel costs have surged while crude prices are up only modestly. There is a lack of adequate refining capacity to process crude into gasoline and diesel to meet high global demand.
2/x
HOW MUCH CAN THE WORLD REFINERIES PRODUCE DAILY?
About 100 million bpd, according to the International Energy Agency, but about 20% of that capacity is not useable. Much of that unuseable capacity is in Latin America and other places where there is a lack of investment.
3/x
NEW: A flood of U.S. renewable diesel plants set to come online in the next three years will not be enough to offset the loss of petroleum diesel refining capacity from plant closings since 2019, a Reuters analysis of federal data shows.
At least 12 renewable diesel projects worth more than $9 billion are under construction, with another 9 proposed. The 12, along with existing plants, are expected to produce about 135,000 barrels per day of the fuel by 2025 according to EIA data, from around 80,000 bpd now.
2/x
BUT since 2019, diesel production capacity fell by about 180,000 bpd total, according to the U.S. EIA, and at least 1 more U.S. refinery is set to close next year. In addition, many of those refiners set to produce renewable diesel will also no longer make gasoline/jet.
3/x
AS A REMINDER: Most refining capacity shut in the past 3 years was due to 1. Explosions and bankruptcy (PES, Superior, Limetree Bay) 2. Storm damage 3. Conversion to biofuels 4. $1bn+ worth of maintenance industry thinks is overwhelming given long term trajecito of fuel demand
Globally, Russia’s refineries are running 30% lower than normal. Europe’s, which rely on Russian feed, are also running at reduced rates. This affects prices everywhere.
US refineries are operating at mid-high 90% capacity range. Run higher than that and units can get volatile.
$CVR says it is running a maximum light crude slate, maximizing premium production, maximizing RIN generation and selling 100% of WCS in Cushing #OOTT
CVR: "We believe further consolidation in the refining space is needed, and we would like to be a part of that process... we remain interested in a number of potential opportunities, including our nearly 50% stake in Delek and potential assets in PADD IV"
CVR on the conversion of the existing hydrocracker at Wynnewood to allow for the production of renewable diesel: "we could receive feedstock as early as May of 2021 and have the unit online by July 1 of '21."