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Jun 22, 2022 • 13 tweets • 3 min read
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:
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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.
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Jun 21, 2022 • 4 tweets • 1 min read
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.
reuters.com/markets/commod…
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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.
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Jun 17, 2022 • 10 tweets • 2 min read
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:
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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.
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Jun 15, 2022 • 4 tweets • 1 min read
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
$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"