Diesel fuel supplies have hit all-time lows on the East Coast and gasoline prices have soared to multiple records in recent weeks. Some refineries shuttered during the pandemic-induced recession in 2020, when demand for gasoline took a nosedive. The refinery outages have caused refinery stocksincluding Valero and Marathon--to trade higher on Monday. Click to become an INSIDER for under $2.00 a week. On Twitter @colin_atagi. By Daily Report Staff (iStock) Even as oil and gas companies' profits soar, refineries across the country. Fire broke out in the early morning that triggered a vat of butane to ignite with an explosion so large that it was detected from space. (LogOut/ All rights reserved. So, as was the case throughout the 1970s, the industry and consumers are left to wait to see what disastrous and ineffective action to control the market this President and his inept team might take next. Neste, having ceased refining operations at the Naantali refinery in Finland, announced plans to develop the Porvoo refinery in their own words - "towards co-processing renewable and circular raw materials.". When an existing oil refinery becomes defunct and needs to be repurposed, one of the over-riding priorities is to deal with the remaining waste and pollution left by what have often been decades spent refining crude oil. Until now, California fuel costs followed worldwide trends. hide caption, PETALUMA, CALIFORNIA - MAY 18: A customer pumps gas into their car at a gas station on May 18, 2022 in Petaluma, California. Refiners' prices on those fuels - $250 to $280 per barrel - are closer to what consumers pay, Daniel Milan, managing partner at. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. While the Biden administration says market manipulation by Big Oil is behind the shortage of refined fuel right now, the . The president urged oil executives to increase the supply of gasoline and other refined products, and to drill for more oil in a bid to bring gas prices down. Image Drilling for oil . There were other disasters around the same time. 2008-2023 - Shore News Media & Marketing Ltd. Co. All rights reserved. Friday, February 11, 2022 3:56 am. In a recent interview with Fox Business, American Petroleum Institute President Mike Sommers stated that 11 US gas refineries closed over the past two years. The evidence for the impact of the pandemic on the sector is widespread and undeniable. Even as oil and gas companies profits soar, refineries across the country are being retired and converted to other uses as owners balk. For licensing opportunities of our original content, please contact Daily Caller News Foundation, Content created by The Daily Caller News Foundation is available without charge to any eligible news publisher thatcan provide a large audience. Continue reading this story and get ACCESS to all our content from any device with a subscription now. President Joe Biden has repeatedly slammed the U.S. fossil fuel industry for allegedly profiting while Americans are suffering from high gas prices, and he resists expanding refinery capacity, even as he continues to hobble producers, including delaying lease . The payment will decline to zero if margins increase to $10.20 per barrel. The Environmental Protection Agency under President Joe Biden is set to abruptly issue a sweeping denial of economic hardship exemptions to the Renewable Fuel Standard (RFS) program from small oil refineries around the U.S., likely forcing one Texas refinery to go out of business at a time when American energy independence is desperately needed. The drop in capacity was driven by a 13% drop in gasoline consumption, and prices for gasoline and diesel hit a four year low. Feb 7, 2022 (Bloomberg) When the second-largest U.S. refinery shuts down unexpectedly with no clarity as to when operations will return to normal, it could have an outsized impact on a market already squeezed for supplies.Marathon Petroleum Corp.'s 593,000 barrel-a-day Galveston Bay refinery in Texas City, Texas, got knocked out of Photographer: Chris Kleponis/Abaca/Bloomberg, Cranes operate at LyondellBasell facility along, the Houston Ship Channel Wednesday, Aug. 27, 2014, in Houston. Reports also came in on Monday that Valeros Houston refinery was flaringa safety event used to manage excess material. Major refinery operators have largely opted to upgrade facilities rather than construct new greenfield plants because of the projected fuel demand decline in coming years and lengthy regulatory . Limetree Bay Energy shut its St. Croix refinery due to financial problems in May 2021 after only operating for a few months, due to operational setbacks. HollyFrontier Corp said in June 2020 it would convert its Cheyenne refinery into a renewable diesel plant that would produce 6,000 bpd of renewable diesel. UPDATED: Please read and follow our commenting policy: Santa Rosa gas prices charged an average of $6 for a gallon of regular fuel Monday. In one particularly unusual move, India's Reliance Industries said it would simply sell the crude oil that it had in transit at sea, rather than allowing the cargo to arrive at its refineries. Informations sur votre appareil et sur votre connexion Internet, y compris votre adresseIP, Navigation et recherche lors de lutilisation des sites Web et applications Yahoo. Copyright 2023 Separo. US President Joe Biden departs Marine One after, arriving in Washington, D.C., US, on Tuesday, June 14, 2022. Russia's invasion of Ukraine has helped drive gasoline prices to new heights, and last week, Marketplace's Andy Uhler wrote that some U.S. refineries shut down for good after prices hit rock . Indeed, Galp halted operations at the Matosinhos oil refinery complex in Portugal from early 2021, citing a 16% drop in throughput in the fourth quarter of 2020. The Department of Energy didnt respond to a request for comment from TheDCNF. Overall, operating U.S. refineries had a capacity of about 17.7 million bpd of oil and produced about 9.5 million bpd of gasoline, 4.7 million bpd of diesel fuel and 1.3 million bpd of jet fuel in 2021. Three of the refineries in question were run by the largest US refiner of crude oil, Marathon Petroleum, while one was run by Shell and the other by independent HollyFrontier, illustrating the fact that this is an issue which cuts across operators and impacts the industry as a whole. According to a report from Reuters, published in June of this year, the refining capacity across the US fell by 4.5% during 2020, the largest drop since the recession of 2012. June 21, 2022 Why is Oil Refining Down? Prices have edged down by a few cents in recent days, but remain elevated. One refinery is set to come back online in . Read the full story at theDaily Caller News Foundation. President Biden and Big Oil are at each other's throats. Search Posts. Gasoline Prices 26 Cents Lower Than Last Year, Russias Lukoil Looks To Sell Stake In Offshore Oil And Gas Field, Kazakhstan Could Suspend Natural Gas Exports Next Winter, Kazakh Oil Starts Flowing To Germany Via Russian Pipeline Network, Saudi Arabia Signs $400 Million Aid Package For Ukraine, Chinas Coal Plant Approvals Surged To A 7-Year High In 2022, Iranian Currency Drops To Record Low Against The U.S. Dollar, Oil Prices Dip As Traders Wait For Chinese Demand To Rebound, Academics: Russia Selling Oil Way Over Price Cap, Ecuador Calls Force Majeure On Almost All Of Its Oil Production, BOEM To Hold Oil, Gas Lease Sale On March 29, The U.S. Intensifies Sanctions Against Russia, U.S. Motorists in Colorado should get ready to pay more at the pump after Suncor Energy announced this week it would shut down its Commerce City oil refinery for as long as three months due to equipment Dollar Tree Inc forecast annual profit well below estimates on Wednesday, hurt by elevated freight and investment costs and as consumers rein back spending on discretionary items. New England's diesel supply issues were made worse when a Canadian refinery in Newfoundland shut down in 2020 as the pandemic impacted on demand. Since the start of the pandemic, statistics related to Covid-19 hospitalizations in the world "only got worse month by month . US governments accomplished this through various methods, including increasingly restrictive environmental regulations. Refineries Shutting Down South Africa is refining less crude oil and only two refineries remain operational as it has become increasingly expensive to operate refineries and more. Contrary to claims from Trump and other Republicans, Biden has not "shut down" American energy: US crude oil production in Biden's first year was higher than in each of Trump's first two years. The cost of driving had been dropping for 14 weeks nationwide before the recent refinery issues developed. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. Not all of those refineries have come back online. But this is a problem for which there are no quick remedies. Five refineries have shut down in the United States in just the past two years, reducing the nation's refining capacity by about 5 percent and eliminating more than 1 million barrels of fuel. Thursday, May 12, 2022. A key Texas petroleum refinery that produces more than 200,000 barrels of fuel per day is facing a premature shutdown that could increase pressure on domestic fuel supplies. Throughput at its French refineries was up 3% on the quarter at 274,000 b/d but remained 46% down compared with 2019. New York gas stations, for example, charged an average of $3.68 per gallon as of Monday, according to AAA. Hurricane Ida shuttered or curtailed output at six refineries in Louisiana that process 1.92 million barrels per day (bpd) of crude, around 12% of U.S. refining capacity. Bidens intemperate outburst at ExxonMobil last week and todays letter indicates Mr. Yergins fears were well-founded. Justin Sullivan/Getty Images Refinery maintenance along the West Coast is being blamed for the sudden spike in the cost of gas across California after weeks of downward trending prices. Education: BA, Marquette University. A bit of Bible, A bit of Life, A bit of Politics, Survey: Plurality Blame Joe Biden for High Gas Prices, Biden Presses Oil Industry to Increase Production as Refineries Already Running at Full Capacity, Eleven US gas refineries closed over the past 2 years OpentheWord.org New Human New Earth Communities, https://openthewordblog.files.wordpress.com/2023/02/98-miraculous-healing-of-3-month-old-baby.mp3, https://openthewordblog.files.wordpress.com/2019/10/nulearaudiopodcast.mp3, https://openthewordblog.files.wordpress.com/2019/09/failuretoequip.mp3, https://openthewordblog.files.wordpress.com/2019/09/arkofcovpodcast.mp3, https://openthewordblog.files.wordpress.com/2019/08/podcast2-vision.mp3, https://openthewordblog.files.wordpress.com/2019/08/podcastvision-1.mp3, https://openthewordblog.files.wordpress.com/2019/08/podcastasteroidupdate-2.mp3, https://openthewordblog.files.wordpress.com/2019/07/20inheritingsin.mp3, https://openthewordblog.files.wordpress.com/2019/05/19-2060adsirisaacnewton.mp3, https://openthewordblog.files.wordpress.com/2019/04/18-spiritualwarfare-2.mp3, https://openthewordblog.files.wordpress.com/2019/03/whatareterritorialspirits-1.mp3, https://openthewordblog.files.wordpress.com/2019/03/narcissisimandthechurch-1.mp3, https://openthewordblog.files.wordpress.com/2019/03/andybeckerhealing-1.mp3, 21% blamed the Russian invasion of Ukraine and resulting sanctions; and. Well, it turns out a lot of people need refined products," says Blanch. There's just fewer refiners in the U.S. today than a couple of years ago. LYONDELLBASELL HOUSTON: CAPACITY: 263,776 barrel-per-day (bpd) Register for free to Reuters and know the full story Lyondell said in April of 2022 that it would permanently shut the. In addition to the shutdown of refineries, at least two are set to be converted to biofuel production. That is pretty much always the inevitable outcome of such policies. We will remove any comments or commenters that do not follow this commenting policy. The United States hasn't seen a major new refinery built since the 1970s. Please, Saudi Aramco Looks To Invest In LNG Export Facility Abroad, European Natural Gas Prices Post Longest Monthly Losing Streak Since 2020, Alberta Eyes Massive Budget Surplus Thanks To High Oil Prices, U.S. Crude Oil Inventories Continue To Build, Russias Oil Exports Still Strong Despite Sanctions, Russian Oil And Gas Project Misses Output Targets After Exxon Exit, Gazprom Neft: Russian Oil Output Cut Will Help Balance The Market, BPs CEO Warns Of Oil And Gas Price Spikes If Energy Transition Is Rushed, House Republicans Look To Block ESG Investing In Retirement Plans, Chevron Hikes Annual Share Buyback Target To $17.5 Billion, BP To Stop Publishing Statistical Review Of World Energy After 71 Years, Shale CEO Highlights What Argentinas Oil Industry Needs To Flourish, Japan Steps Up Efforts To Build Nuclear Fusion Reactor, U.S. Natural Gas Futures Hit One-Month High, UK Households Brace For Higher Energy Bills In April, Kazakhstan Enters New Era Amid Strong Demand For Its Commodities, Rio Tinto Signs Iron Deal With One Of Chinas Top Steelmakers, Mexico's Oil Giant Reports Staggering Losses, U.S. The permitting and building of a new greenfield refinery would take at least a decade; major expansions take several years from cradle to startup. 2022 Welcome: Official Visitors Guide to Greater Baton Rouge. Shell announced in November 2020 it would be shuttering the refinery after attempts to sell the plant between July and October were unsuccessful. PATRICK DE HAAN: There's been a tremendous challenge with the refineries being able to meet demand that has resurged as the economy continues to gain momentum post-COVID. About three weeks ago, gas at the Safeway on Mendocino Avenue was $4.94 per gallon. The solutions we offer can be scaled up or down depending upon the size and scope of the refinery, and can play a key role in helping to ensure that the oil refineries of yesterday help to play a part in the green fuel revolution of tomorrow. In our interview last week, S&P Global Vice Chairman Dan Yergin expressed the concern that national leaders in the U.S. and Europe might resort to enacting what he called panicky policies in response to what is without question the worst energy crisis of this century. Lyondell Bassel called this a "strategic and financial decision." The Houston Oil refinery can transform 268,000 barrels per day of crude oil into transportation fuels like gasoline, diesel, jet fuel, and other products. The 50-year-old refinery was severely damaged after several feet of water flooded it during the storm. The refinery processes 268,000 barrels per day (bpd) of oil and produces 92,600 bpd of diesel fuel, 89,000 bpd of gasoline and 44,500 bpd of jet fuel. The average retail price of gasoline increased 51% in Colorado and 27% in the Rocky Mountain region between the end of December and Feb. 20, according to a U.S. Energy Information Administration . That would be a pretty clear antitrust violation, Borenstein said. This proved not to be the case in February of this year, however, when unseasonably freakish arctic weather temperatures dropped as low as -13C in Austin, -15C in Dallas and -23C in Amarillo led to the largest refineries in North America having to be shut down across the state. 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