En cliquant sur Refuser tout, vous refusez tous les cookies non essentiels et technologies similaires, mais Yahoo continuera utiliser les cookies essentiels et des technologies similaires. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. In Australia, the collapse of the oil refining industry has resulted in their now being just two refineries in the country, after Exxon Mobil closed the 86,000 bpd Altona refinery in February, following on from BP closing the Kwinana refinery in November of last year, and converting it into a fuel import terminal. September 26, 2022 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. 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. I filled up because I dont know if its going to get cheaper anytime soon. Of the three California refineries undergoing scheduled maintenance, one is in Benicia and the other two are in Los Angeles. . The Department of Energy didnt respond to a request for comment from TheDCNF. France's TotalEnergies reported higher refinery throughput in Q3 amid improved margins. ExxonMobil's profit in the first quarter more than doubled from a year earlier. In Germany, the Heide refinery has reduced staff numbers by 106 positions, but is looking to the future with confidence due to plans to change the business model of the plant to concentrate on the production of green hydrogen. Vous pouvez modifier vos choix tout moment en consultant vos paramtres de vie prive. Fire smolders at an oil refinery that triggered several large explosions at the Philadelphia Energy Solutions Refining Complex on June 21, 2019. Search Posts. The national average price of gasoline surpassed $5 a gallon for the first time ever this month. By Daily Report Staff (iStock) Even as oil and gas companies' profits soar, refineries across the country. Five refineries have shut down in the past two years, reducing the nation's refining capacity by about 5% and eliminating more than 1 million barrels of fuel per day from the market, leaving the remaining facilities straining to meet demand. The Paramount refinery began operating in the 1930s. 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. Operable atmospheric crude oil distillation capacity, our primary measure of refinery capacity in the United States, totaled 17.9 million barrels per calendar day as of January 1, 2022, down 1% from the beginning of 2021. Given that the recent COP26 committed governments around the world to measures which would hit targets at or around 2 degrees Celsius depending upon interpretations of the various conditional and unconditional commitments the direction of travel identified in 2017 has clearly remained the same and has, if anything, accelerated. PETALUMA, CALIFORNIA - MAY 18: A customer pumps gas into their car at a gas station on May 18, 2022 in Petaluma, California. Refining capacity in the U.S. is about a million barrels a day below what it was prior to the pandemic. If the answer to this question is yes, whats more, then the sector will have to accept that refinery shutdowns are becoming a fact of life and, having accepted that, start planning for the future. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. The report was published by environment think-tank Carbon Tracker, Swedish investment fund AP7 and Danish pension fund PKA, and while the environmental think-tank might be expected to lean heavily toward predicting a bleak future for oil refining, the investment and pension fund are merely offering a clear-eyed assessment of where they think investors would or wouldnt be wise to put their money. June 21, 2022 Why is Oil Refining Down? Weve written in the past about the repurposing of decommissioned oil and gas rigs as geothermal energy sites, and the redevelopment of oil refineries that are surplus to requirements follows the same pattern older, environmentally damaging infrastructure being retained thanks to the role it can play in supplying the environmentally friendlier energy of the future. Both have been shut down. From the industrial separation & filtration experts. Globally, some 2.13 million bpd in refining capacity has been shut down since 2020. With the U.S. blocking new purchases of Russian oil, the White House, Republicans and the oil industry are engaged in a disagreement over whether the administration has hampered domestic oil. Nothing contained on the Web site shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction. Learn how your comment data is processed. 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Could Gravity Batteries Win The Energy Storage War? 2022 Welcome: Official Visitors Guide to Greater Baton Rouge. Its forward progress could shut down that regions refineries. By Mike Lee | 06/16/2022 07:17 AM EDT The same thing is happening across Europe, With Neste closing the Naantali refinery which has previously refined 55,000 barrels per day (bpd), and Gunvor closing the loss-making Antwerp refinery previously dealing with 115,000 bpd with no plans to reopen it if the market picks up. There are examples of this approach from across Europe: Total is planning to convert the Grandpuits refinery in France which has been temporarily shut down since February this year into a biofuels and plastics recycling complex. There's just fewer refiners in the U.S. today than a couple of years ago. The COVID pandemic really drove down gasoline and diesel demand which accelerated some things that were already happening, Geoff Moody, the vice president of government relations at the American Fuel & Petrochemical Manufacturers, previously told TheDCNF. if(window.innerWidth <= 1023){ At a time when gas prices are at the highest level in history, hurting regular Americans, he points out that Big Oil companies are enjoying record profits. document.write(write_html); Some refiners threw in the towel. The fragility of the sector as a whole was underlined not merely by the impact of the pandemic, which, in all honesty, left hardly any sector completely untouched, but also by the example of Texas, a part of the world which, over and above almost anywhere else, could surely be expected to be able to cope with any temporary issues caused by wider conditions. Eni is evaluating the conversion of the Livorno refinery in Italy into a biorefinery. Change), You are commenting using your Twitter account. During the past week alone, according to some industry insiders, prices at the pump have jumped by more than 50 cents. Over 2021, several refinery complexes saw workforce lay-offs - some as high as 60%. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. It occurred at the Richmond-based Chevron Richmond Refinery, which reportedly experienced power problems. Those, however, are specific to the West Coast and gas prices across the rest of the country are in better shape. Refineries Shutting Down. The result was that five refineries across the US shut down permanently. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. The bottom line here is that this is a problem that has been a long time coming. In a letter sent to seven refining and fuel companies, Biden alleges they are engaged in price-gouging and threatens that he is prepared to use all reasonable and appropriate Federal Government tools and emergency authorities to increase refinery capacity and output in the near term, raising the specter that the current President could be ready to resort to even more Jimmy Carter-style market control measures that were tried and failed during the 1970s. Sonoma Countys average on Monday was $6.03 per gallon, which was outpacing Californias overall average of $5.80 per gallon. 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Strikes Back At EU Criticism Of The Inflation Reduction Act, China Secures Two Long-Term LNG Deals With U.S. Producer, Oil Gains Over 2% As Gasoline Stocks Show Second Weekly Decline, Russia Says Europe Will Struggle To Replace Its Oil Products, "Natural Gas Price Fundamental Daily Forecast Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas, 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers, Shell Considered Relocating To The U.S. 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. LyondellBasell plans to shut down its Houston . In Pursuit Of Higher Value, Big Oil Isnt Losing Any Sleep Over The EV Revolution, Mining Majors Are Treading Carefully As Battery Metals Boom. }. Fire smolders at an oil refinery that triggered several large explosions at the Philadelphia Energy Solutions Refining Complex on June 21, 2019. California refineries shut down 2022 ckeditor html george and lennie friendship quotes chapter 3. cherry season turkish drama in urdu. George Frey/Getty Images The refinery had already been idle for a decade before restart. Throughput at its French refineries was up 3% on the quarter at 274,000 b/d but remained 46% down compared with 2019. Marathon has not given any indication on when the refinerythe second largest in the United Statesmight restart. But suddenly, an administration that has waged a bureaucratic war on the domestic oil and gas industry since the day it took office has awakened and figuratively said, hey, maybe closing down these refining operations isnt such a great idea after all. Canadian integrated oil company Suncor Energy Inc. (NYSE: SU) has revealed that extreme weather including multiple fires have forced the company to . 'Massive' violations in Ukraine a focus as UN human rights body meets, Court rules New York law violates family planning centers rights, SUZANNE DOWNING: Biden Is Throwing Americans Retirement Savings To The Wolves. And that's when you shut down refineries," says Denton Cinquegrana, chief oil analyst at Oil Price Information Service. 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. 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. This needs to last me for a couple weeks.. 2008-2023 - Shore News Media & Marketing Ltd. Co. All rights reserved. Trading and investing carries a high risk of losing money rapidly due to leverage. Cinquegrana said only one of the four California refinery shutdowns was unplanned. The President might believe that a heavy-handed action to implement price controls or other actions could offer him some short-term political advantage leading up to the November elections, but in the mid-to-long-term it would only result in less availability of the products being controlled. Since the start of the pandemic, statistics related to Covid-19 hospitalizations in the world "only got worse month by month . At the same time over the last 4+ decades, some companies have decided to shut down aging refineries as the costs of environmental regulatory compliance and mandates to blend constantly rising volumes of biofuels into the gasoline have overwhelmed their ability to be profitable. Phillips 66 announced in November 2021 that it would not reopen the Alliance refinery, which was shut in mid-August ahead of Hurricane Ida. The payment will decline to zero if margins increase to $10.20 per barrel. Operating refinery capacity in the US has decreased since 2020 Over the last three years, more than 1 million barrels a day of refining capacity went offline a s a result of the pandemic and extreme weather. Pour en savoir plus sur notre utilisation de vos informations, veuillez consulter notre Politique relative la vie prive et notre Politique en matire de cookies. The cost of driving had been dropping for 14 weeks nationwide before the recent refinery issues developed. 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. 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. We average between 2 and 3 posts a day. Opinions expressed by Forbes Contributors are their own. Report: Biden Shuts Down Domestic Oil and Gas Supplies, Calls for More Production. But on Monday, at that same Safeway, Prince paid $5.39 per gallon to fill his Mazda 6. This is a family newspaper, please use a kind and respectful tone. (Photo by Justin Sullivan/Getty Images). "The narrative until today was that we were going to be driving electric vehicles by the end of the year. Shell planned to try to divest the refinery as it considers closing facilities it cannot sell, the company told investors. Some refineries shuttered during the pandemic-induced recession in 2020, when demand for gasoline took a nosedive. Marathon Petroleum said in August 2020 that it would permanently close two refineries in Martinez, California, and Gallup, N.M. in response to lower fuels demand, after idling the facilities following COVID-19 outbreaks in the United States. Refiners' prices on those fuels - $250 to $280 per barrel - are closer to what consumers pay, Daniel Milan, managing partner at. (Photo by George Frey/Getty Images) The plant is set to close by December 31, 2023. The United States hasn't seen a major new refinery built since the 1970s. The U.S. had five fewer. While Gas Buddy indicated that gasoline prices would start to ease somewhat this week, Marathon Petroleums 593,000 bpd Galveston Bay refinery is shut down for the foreseeable future, thanks to a citywide power outage during freezing temperatures. Smolders at an oil refinery that triggered several large explosions at the Philadelphia Energy Solutions Refining on! 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