You can change your choices at any time by visiting your privacy controls. But on Monday, at that same Safeway, Prince paid $5.39 per gallon to fill his Mazda 6. On Thursday, Lyondellbasell Industries announced its plans to shut down its Houston Oil refinery by 2023 permanently. Both have been shut down. Of course, high demand combined with high prices has led oil companies to make big profits. US governments accomplished this through various methods, including increasingly restrictive environmental regulations. "With companies. 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. 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. Meanwhile Chevron reported its highest quarterly profit in nearly a decade, while Shell posted its highest earnings ever. (LogOut/ The Paramount refinery began operating in the 1930s. 74-89% of retail investor accounts lose money. En cliquant sur Accepter tout, vous acceptez que Yahoo et nos partenaires traitent vos informations personnelles et utilisent des technologies telles que les cookies pour afficher des publicits et des contenus personnaliss, et des fins de mesure des publicits et des contenus, dtude des audiences et de dveloppement de produit. }. Of the two remaining Australian refineries, Geelong in Melbourne is the largest, with a capacity of 128,000 bpd, but is by no means guaranteed to remain in operation with the owners, Viva Energy, accepting a government subsidy but refusing to rule out closure. The previous weeks average was $5.64, according to AAA. Those that remain are running at 94% capacity. LyondellBasell will be closing its Houston refinery and exiting the refining industry, according to a filing with the Securities and Exchange Commission (SEC). Change), You are commenting using your Twitter account. The Department of Energy didnt respond to a request for comment from TheDCNF. Some of these refineries that shut down in 2020 "will become terminals, some of them will become renewable diesel or biofuel plants," Israel added. Eduardo Munoz Alvarez/Getty Images Photographer: Chris Kleponis/Abaca/Bloomberg, Cranes operate at LyondellBasell facility along, the Houston Ship Channel Wednesday, Aug. 27, 2014, in Houston. 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. "The narrative until today was that we were going to be driving electric vehicles by the end of the year. During the past week alone, according to some industry insiders, prices at the pump have jumped by more than 50 cents. 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. Right now, all bets are off.. The Midwest is also seeing supply constraints . 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. 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. 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. De Haan added that one wild card could be Hurricane Ian, which, as of Monday, was approaching the Gulf Coast. I filled up because I dont know if its going to get cheaper anytime soon. ExxonMobil's profit in the first quarter more than doubled from a year earlier. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. Due largely to the difficulty in obtaining federal permits and the constantly rising costs associated with complying with expanding environmental regulations, the U.S. has not seen the groundbreaking on a new greenfield refinery with at least 50,000 barrel per day capacity since the late 1970s. "My personal view is there will never be another refinery built in the United States," Wirth said. They definitely cannot talk to each other about their production time. Report: Biden Shuts Down Domestic Oil and Gas Supplies, Calls for More Production. New York gas stations, for example, charged an average of $3.68 per gallon as of Monday, according to AAA. Of the three California refineries undergoing scheduled maintenance, one is in Benicia and the other two are in Los Angeles. About three weeks ago, gas at the Safeway on Mendocino Avenue was $4.94 per gallon. 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. Those that remain are running at 94% capacity. Lyondell could permanently close the refinery ahead of the December 2023 deadline if one of several major production units is shut and cannot quickly return to production. In 2011, the refinery was idled. June 17 (Reuters) - Since the onset of the global pandemic, the United States has lost nearly 1 million barrels per day of oil refining capacity, with more set to be shuttered in the next few years. Shell announced in November 2020 it would be shuttering the refinery after attempts to sell the plant between July and October were unsuccessful. Gas prices started skyrocketing following a raft of sanctions on Russian oil, after its invasion of Ukraine in February. The president earlier this month singled out ExxonMobil, saying the company "made more money than God this year.". Those, however, are specific to the West Coast and gas prices across the rest of the country are in better shape. Like Marathon, Valero has not given any indication when the refinery will be back up. The 50-year-old refinery was severely damaged after several feet of water flooded it during the storm. 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. The refinery outages have caused refinery stocksincluding Valero and Marathon--to trade higher on Monday. 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. The industrial landscape for oil refineries has been challenging of late, with the Covid-19 pandemic triggering a massive slump in demand for oil which resulted in many refineries across the world having to temporarily shut down. Sonoma Countys average on Monday was $6.03 per gallon, which was outpacing Californias overall average of $5.80 per gallon. 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 This needs to last me for a couple weeks.. Why are refineries closing amid oil price windfall? 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. The Houston Refinery is currently operating as planned, LyondellBasell said in a statement Tuesday to The Daily Caller News Foundation. Refining capacity in the U.S. is about a million barrels a day below what it was prior to the pandemic. Santa Rosa resident Paige Hogan, 33, topped off a Honda Civic for $5.79 per gallon at an Arco station on Fourth Street. 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. The agreement announced on Sunday will taper into a 7.7-million-barrel-a-day cut from July to December and then to 5.8 million barrels a day from January 2021 to April 2022. George Frey/Getty Images 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. Experts say ongoing fears of a recession had been pushing down gas prices on a global level during the past several months. U.S. refineries are already going gangbusters right now. var write_html = `

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