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. HollyFrontier shut all units as of the end of August 2020 at its 48,000 barrels per day refinery in Cheyenne, Wyoming. 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. Bidens intemperate outburst at ExxonMobil last week and todays letter indicates Mr. Yergins fears were well-founded. The evidence for the impact of the pandemic on the sector is widespread and undeniable. France's TotalEnergies reported higher refinery throughput in Q3 amid improved margins. 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. By clicking submit below, you consent to allow us to store and process the personal information submitted above to provide you the content requested. 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. I filled up because I dont know if its going to get cheaper anytime soon. Not all of those refineries have come back online. It had been $5.64 last week. The obvious answer is to convert what was once an oil refinery into an oil terminal. Thursday, May 12, 2022. Both have been shut down. Citgo Petroleum Corp. is shutting down a section of a sulfur recovery unit known as a B-train for four days due to the loss of third-party oxygen supply "resulting from increased medical field. More than 1 million barrels a day of the country's oil refining capacity or about 5% overall has shut since the beginning of the pandemic. The question for anyone working in the industry is whether the sector will spring back as lockdowns lift across the world, or whether the impact of the pandemic was merely an accelerating factor within a process which was already underway. 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 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. By Alex Kimani - Dec 29, 2022, 11:00 AM CST. 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. 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. LyondellBasell announced in April that it would shut the refinery by 2024 due to the heavy financial burden of upgrading its more than 100-year-old infrastructure, Barrons reported at the time. Enter your email address to follow this blog and receive notifications of new posts by email. All defendants in crime reports are presumed innocent until proven guilty. 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. U.S. refiners throttle back Q1 output after record 2022 runs By Erwin Seba . George Frey/Getty Images Change). The Midwest is also seeing supply constraints . The Department of Energy didnt respond to a request for comment from TheDCNF. Get access to our searchable data center of TOP LISTS. On March 30, North Atlantic Refining Ltd announced the first refinery to shut down in North America. You can change your choices at any time by visiting your privacy controls. The industry leader for online information for tax, accounting and finance professionals. Click to become an INSIDER for under $2.00 a week. About three weeks ago, gas at the Safeway on Mendocino Avenue was $4.94 per gallon. The Houston, Texas, facility which is operated by LyondellBasell Industries, spans 700 acres and was built in 1918 is scheduled to permanently close by the end of 2023, but could shut down earlier if a major equipment failure spreads to major units, two people familiar with the issues told Reuters. Any trading and execution of orders mentioned on this website is carried out by and through OPCMarkets. 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. The previous weeks average was $5.64, according to AAA. And that's when you shut down refineries," says Denton Cinquegrana, chief oil analyst at Oil Price Information Service. 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. Has Saudi Arabias Relationship With Russia Reached Its Limits? Crude oil production stopped and was permanently shut down in 2017. Massive Oil Refinery On Track To Shut Down Amid Fuel Supply Shortages, Record Prices Thomas Catenacci on June 7, 2022 UPDATE: This article has been updated to include comment from LyondellBasell Industries on its plans to cease operations in 2023. The U.S. had five fewer. 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. }. Refineries will receive a maximum payment of 1.8 cents per litre when the margin they make per barrel of oil falls to $7.30. Overall, its throughput in Q3 was 1% up on the year at 1.225 million b/d, but 29% down from 2019. The United States hasn't seen a major new refinery built since the 1970s. Trading and investing carries a high risk of losing money rapidly due to leverage. Gasoline prices were also spiking on Monday, with the nations average up 8 cents from a week ago and 12.3 cents a month ago at $3.42 per gallon, according to Gas Buddy. The long term aim is for the company to achieve carbon neutrality by 2050. "The narrative until today was that we were going to be driving electric vehicles by the end of the year. One refinery is set to come back online in . CAPACITY: 161,000 bpd (Martinez); 27,000 bpd (Gallup). David Ryder/Getty Images We will remove any comments or commenters that do not follow this commenting policy. 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. Francisco Blanch, head of commodities research at Bank of America, points out that the country is still heavily reliant on gasoline despite those goals. read more. The company ceased refinery operations at Cheyenne the following month, making it the first U.S. refinery to close in 2020. Our Standards: The Thomson Reuters Trust Principles. Santa Rosa resident Paige Hogan, 33, topped off a Honda Civic for $5.79 per gallon at an Arco station on Fourth Street. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Chevron CEO Mike Wirth recently stated as much in an interview with Bloomberg. hide caption, PETALUMA, CALIFORNIA - MAY 18: A customer pumps gas into their car at a gas station on May 18, 2022 in Petaluma, California. No off-topic remarks. 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. 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. Refineries Shutting Down. PETALUMA, CALIFORNIA - MAY 18: A customer pumps gas into their car at a gas station on May 18, 2022 in Petaluma, California. US governments accomplished this through various methods, including increasingly restrictive environmental regulations. At Separo weve spent many years earning a global reputation for the excellence and flexibility of our tank cleaning and recovery services. The company is converting the Martinez refinery to produce 260 million gallons per year of renewable diesel starting in 2023. The report predicted companies such as Chevron CVX.N, Royal Dutch Shell RDSa.L, France' Total TOTF.PA and China's largest refiner Sinopec could see profits from refining drop by 70%, a prediction based on commitments to limit global warming to 2 degrees Celsius, under which, according to the International Energy Agency, the demand for oil would drop by 23% between 2020 and 2035. Biden spoke at the 29th AFL-CIO Quadrennial Constitutional Convention in Philadelphia. Click Manage settings for more information and to manage your choices. Valero's (NYSE: VLO) Texas City 225,000 bpd refinery has also shut down. 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. Like Marathon, Valero has not given any indication when the refinery will be back up. Canadian integrated oil company Suncor Energy Inc. (NYSE: SU) has revealed that extreme weather including multiple fires have forced the company to . 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. 2022 Welcome: Official Visitors Guide to Greater Baton Rouge. The end of the Keystone pipeline is also troubling for the oil gas . We average between 2 and 3 posts a day. 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. The American Petroleum Institute (API), which represents most if not all of the companies targeted by the Presidents letter, responded with a letter of its own, offering a laundry list of 10 actions the administration could take to incentivize and enable the industry to start to reverse the capacity shortage. Those that remain are running at 94% capacity. Like Marathon, Valero has not given any indication when the refinery will be back up. Get access to more than a decade of story archives. It would take months to bring the refineries back online, and it would be costly for the refiners. During the past week alone, according to some industry insiders, prices at the pump have jumped by more than 50 cents. Globally, some 2.13 million bpd in refining capacity has been shut down since 2020. The reasons for those closures are due primarily to governments. var write_html = `