It stopped petroleum refining operations but plans to resume operations in 2022 as a renewable diesel processing plant, which receives subsidies from the U.S. government. Why are refineries closing amid oil price windfall? The bottom line here is that this is a problem that has been a long time coming. Marathon has not given any indication on when the refinerythe second largest in the United Statesmight restart. Change), You are commenting using your Facebook account. LYB Refineries Shutting Down. By Mike Lee | 06/16/2022 07:17 AM EDT The California government also provided financial incentives for the refineries to produce products other than gas, such as cooking oil, which resulted in two California refineries stopping gas production. Shell announced in November 2020 it would be shuttering the refinery after attempts to sell the plant between July and October were unsuccessful. By clicking submit below, you consent to allow us to store and process the personal information submitted above to provide you the content requested. Slectionnez Grer les paramtres pour grer vos prfrences. Pledges Additional $2 Billion In Security Assistance To Ukraine, Three Fires At Pemex Facilities In One Day, Native Americans Urge Biden To Halt Offshore Wind Permitting, High Energy Prices Force Worlds Largest Chemicals Company To Cut Jobs, U.S. It would take months to bring the refineries back online, and it would be costly for the refiners. In 2011, the refinery was idled. 2008-2023 - Shore News Media & Marketing Ltd. Co. All rights reserved. Editing by Nick Zieminski, Exclusive: Biden administration to move on Midwest ethanol-blended gasoline rule this week -sources, Greta Thunberg detained by Norway police during pro-Sami protest, Norway's Equinor nears deal to buy Suncor's UK oilfields, Dollar Tree sees weak 2023 profit as costs mount, shoppers curb spending, EU silence over Pfizer COVID contract talks is problem that won't go away -watchdog, Russian internet speeds drop on hardware shortage, research finds, Kohl's swings to surprise loss as margins crumble on steep discounts, Enbridge to buy US Gulf Coast gas storage facility for $335 million, Exclusive news, data and analytics for financial market professionals. document.write(write_html); (Photo by Justin Sullivan/Getty Images). June 21, 2022 Why is Oil Refining Down? CAPACITY: 161,000 bpd (Martinez); 27,000 bpd (Gallup). hide caption, SALT LAKE CITY, UT - MAY 24: A driver unloads raw crude oil from his tanker to process into gas at Marathon Refinery on May 24, 2022 in Salt Lake City, Utah. Francisco Blanch, head of commodities research at Bank of America, points out that the country is still heavily reliant on gasoline despite those goals. Not all of those refineries have come back online. Biden spoke at the 29th AFL-CIO Quadrennial Constitutional Convention in Philadelphia. Any trading and execution of orders mentioned on this website is carried out by and through OPCMarkets. Refiners turn crude oil into usable products like gasoline, diesel, and jet fuel. When the pandemic hit and demand for oil evaporated during the recession, refineries took a big financial hit when the price of gasoline plummeted. US President Joe Biden departs Marine One after, arriving in Washington, D.C., US, on Tuesday, June 14, 2022. Bidens intemperate outburst at ExxonMobil last week and todays letter indicates Mr. Yergins fears were well-founded. Prior to the pandemic, experts were already predicting a major downturn in the oil refinery sector across Europe, with companies having to rationalise their presence across the continent, particularly in light of the ageing nature of many of the refineries themselves. 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. Some refiners threw in the towel. Its hard to get a grip on what prices will do, he said. Continue reading this story and get ACCESS to all our content from any device with a subscription now. 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. FCA is shutting down part of its massive Toledo manufacturing . 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. The Golden State is bearing the brunt of these shutdowns, which are triggering a steep uptick in the cost of a gallon of regular unleaded fuel. Some refineries shuttered during the pandemic-induced recession in 2020, when demand for gasoline took a nosedive. Shutdowns, or at. De Haan added that one wild card could be Hurricane Ian, which, as of Monday, was approaching the Gulf Coast. The permitting and building of a new greenfield refinery would take at least a decade; major expansions take several years from cradle to startup. Prices have edged down by a few cents in recent days, but remain elevated. The evidence for the impact of the pandemic on the sector is widespread and undeniable. TOLEDO, Ohio (WTVG) - The company operating a pipeline serving Midwest refineries says it's ignoring an order by Michigan's governor to shut down as she threatens to go after the company's. As for turning back on idled refineries, that's not a quick fix either. The industry leader for online information for tax, accounting and finance professionals. The refinery could be converted into a processor of pyrolysis oils, which can be used to make renewable diesel, but that study will take years. Total gasoline inventories in the United States have been slowly building over the last few weeks, ending at 250 million barrels as of January 28, before the storm. The refinery that subsequently grew at the junction of the Delaware and Schuylkill Rivers today occupies 1,300 acres of urban South Philadelphia landscape, an area that is larger than the. Covid and oil demand took divergent directions in mid-2020. var write_html = `