Fire-Damaged Philadelphia Oil Refinery Heads for Auction
The fate of the largest East Coast oil refinery is set to be decided on Friday in an auction that could determine whether the Philadelphia plant is restarted or used for a different purpose for the first time in over a century.The refinery's owner, Philadelphia Energy Solutions, is scheduled to reveal the winning bidder on Wednesday during a hearing at the United States Bankruptcy Court for the District of Delaware, which will need to approve the sale.PES fell into bankruptcy on July 21, a month after a fire and explosions destroyed a portion of its 335,000 barrel-per-day oil refinery complex.
U.S. Refiners Control Gasoline, Diesel Oversupply
U.S. refiners have cut seasonal crude processing sharply since the start of the second quarter, averting a potential oversupply of gasoline and distillates, but worsening the build up of crude stocks.U.S. refiners have processed an average 16.64 million barrels per day (bpd) of crude since the start of the year compared with 16.94 million bpd at the same point in 2018 (https://tmsnrt.rs/2N9ziVH).Some of the loss can be attributed to the destruction of the 335,0000 bpd Philadelphia Energy Solutions refinery by fire near the end of June.But refiners started running below prior-year rates from March…
Kinder Morgan: Bankrupt Refiner Owes $1.5 mln
Kinder Morgan Liquids Terminals LLC says Philadelphia Energy Solutions failed to make payments for fuel storage and other services totaling nearly $1.5 million since December, roughly seven months before the Pennsylvania refiner filed for bankruptcy.In a Wednesday filing, Kinder asked the U.S. Bankruptcy Court for the District of Delaware to allow it to sell fuel stored by PES at its Carteret, New Jersey, facility to pay itself back for the missed payments.PES, which shut its last crude unit this week, currently has 27,000 barrels of diesel fuel stored at Kinder's terminal as part of an agreement dating to 1996…
Fire burns out of control at Philadelphia refinery
A fire was burning out of control at an oil refinery in Pennsylvania on Friday morning, a Philadelphia fire department official said, as local media reported a series of explosions on site.NBC Philadelphia said the "massive" blaze at the 335,000 barrels per day Philadelphia Energy Solutions refinery was visible from miles away and triggered explosions that were felt as far away as South Jersey.The crude section at the Girard Point portion of the refinery was shut down due to the fire, intelligence provider Genscape said.There were no immediate reports of casualties at the complex, which the NBC affiliate said employs around 1,000 people.A company spokeswoman was not immediately availabl
Pennsylvania says Bankrupt Refiner Owes $3.8 bln in Taxes
The state of Pennsylvania wants a federal judge to halt the bankruptcy of Philadelphia Energy Solutions (PES), arguing the refiner owes an estimated $3.8 billion in fuel taxes, according to a court filing on Friday. The state's Department of Revenue said the refiner must make several changes to the proposed restructuring plan to ensure the taxes are paid before it can support the plan. The $3.8 billion figure is significant for a refiner that had just $43 million in cash on hand when it filed for bankruptcy protection in January. The tax liability stems from a pending audit of the company's books, the state says, and could be adjusted pending the outcome.
Biofuel Credits Continue Free Fall in Wake of Refiner Settlement
Renewable fuel credits for 2018 continued their sharp decline on Tuesday after the U.S. Environmental Protection Agency granted a bankrupt Philadelphia refiner significant relief from its biofuel obligations. Prices for renewable fuel (D6) credits for 2018 traded at 35 cents on Tuesday morning, traders said, down from 38.5 cents on Monday and roughly 40 percent lower than just two weeks ago. The EPA and the Carlyle Group-backed Philadelphia Energy Solutions refinery agreed on Monday that the refiner would have to satisfy only roughly half of its $350 million worth of outstanding compliance obligations under the U.S. Renewable Fuel Standard. Reporting By Jarrett Renshaw
U.S. Refinery Workers Push Biofuels Reform
A delegation of workers from U.S. oil refining companies that oppose the nation's biofuels policy will converge on Washington on Wednesday to try to convince lawmakers to find a way to lessen the regulation's costs without hurting corn farmers. The trip, organized by the United Steelworkers union, marks the latest move in a battle between Big Oil and Big Corn over the fate of the U.S. Renewable Fuel Standard - a law requiring corn-based ethanol in gasoline that the refining industry says is costing it hundreds of millions of dollars a year. More than two dozen workers from refiners Valero Energy Corp…
Trump Wades Deeper into Biofuel Debate
U.S. President Donald Trump on Thursday will gather rivals from the oil and corn industries for the second time this week as the administration seeks elusive common ground on reforms to the nation's controversial biofuels law. The meetings come amid rising concern in the White House over the current state of the U.S. Renewable Fuel Standard (RFS), a law requiring refiners to mix biofuels such as corn-based ethanol into their fuel, which has increasingly divided two of Trump's most important constituencies. A refining company, Philadelphia Energy Solutions (PES) in the key electoral state of Pennsylvania, last month blamed the regulation for its bankruptcy.
Big Corn, Big Oil Square off in White House Biofuels Meeting
U.S. President Donald Trump gathered with senators and Cabinet officials on Tuesday to discuss ways to lower the cost of the nation’s biofuels policy to refiners, a meeting pitting Big Corn against Big Oil. The meeting reflects rising concern in the White House over the current state of the U.S. Renewable Fuel Standard (RFS), a law requiring refiners to mix biofuels such as corn-based ethanol into their fuel, which has increasingly divided two of Trump's most important constituencies. A refining company in the key electoral state of Pennsylvania last month blamed the regulation for its bankruptcy.
Trump Calls Meeting On Biofuels Policy Blamed by Bankrupt Refiner
U.S. President Donald Trump has called a meeting early next week with key senators and Cabinet officials to discuss potential changes to biofuels policy, which is coming under increasing pressure after a Pennsylvania refiner blamed the regulation for its bankruptcy, according to four sources familiar with the matter. The meeting comes as the oil industry and corn lobby – powerful forces in Washington – clash over the future of the Renewable Fuel Standard (RFS), a decade-old regulation that requires refiners to cover the cost of mixing biofuels such as corn-based ethanol into their fuel. Trump's engagement reflects the high political stakes of protecting jobs in a key electoral state.
Fuel Shortages from Harvey to Hamper Labor Day Travel
Travelers and fuel suppliers across the United States braced for higher prices and shortages ahead of the Labor Day holiday weekend as the country's biggest fuel pipelines and refineries curb operations after Hurricane Harvey. Just six days after Harvey slammed into the heart of the U.S. energy industry in Texas, the effects are being felt not just in Houston, but also in Chicago and New York, and prices at the pump nationwide have hit a high for the year. Supply shortages have developed even though there are nearly a quarter of a billion barrels of gasoline stockpiled in the United States.
U.S. East Coast Looks to Nigerian Liftings
Price benchmarks on which West African oil are based fell by more than 1 percent amid concerns over rising oil rig counts in the United States, which last week reached their highest since October 2015. * Drillers added eight rigs in the week to Feb. 10, bringing the total to 591, the most since October 2015, energy services firm Baker Hughes Inc said on Friday. * Top OPEC oil producer Saudi Arabia made a large cut in its crude output in January, helping boost compliance with the group's supply-reduction deal to a record high of more than 90 percent, according to data in a monthly report released on Monday.
Philadelphia Energy Solutions Taps its COO to Lead Company
Philadelphia Energy Solutions has tapped chief operating officer Gregory Gatta as its next chief executive officer, the refining company said on Wednesday. Gatta, an investment professional who worked at various private equity firms like Basso Capital Management and Pegasus Capital Advisors, will replace current CEO Phil Rinaldi, who recently announced he was retiring in March. The transition comes as the 335,000 barrel-per-day refinery, the largest and oldest on the U.S. East Coast, is fighting to survive an industry downturn that has hit the region harder than other parts of the country.
E. Coast Refiners Shun Bakken Rail Deliveries
Philadelphia Energy Solutions Inc, the largest refiner on the U.S. East Coast, will not be taking any rail deliveries of North Dakota's Bakken crude oil in June, a source familiar with delivery schedules said on Tuesday - a sign that the impending start of the Dakota Access Pipeline is upending trade flows. At its peak, PES would have routinely taken about 3 miles' worth of trains filled with Bakken oil each day. But after the $3.8 billion Dakota Access Pipeline begins interstate crude oil delivery on May 14, it will be more lucrative for producers to transport oil to refineries in the U.S. Gulf Coast.
PA Pipeline Spat Could Upend International Oil Flows
Refiners from the Midwest United States are fighting for access to a vital Pennsylvania pipeline – a move that could cripple their East Coast competitors and redraw the map for international flows of crude and fuel into coveted coastal markets. The regulatory dispute centers on a proposal by pipeline operator Buckeye Partners’ to that state's Public Utilities Commission. The plan would reverse the flow of fuels on a section of Buckeye’s 350-mile Laurel Pipeline, which currently flows from the East Coast to Pittsburgh. Because pipelines only flow in one direction…
U.S. Midwest Refiners Profit as Harvey Hits Rivals
U.S. refiners in the Midwest will be among the biggest winners after Hurricane Harvey dealt a blow to their competitors on the U.S. Gulf Coast. Refiners such as PBF Energy and HollyFrontier that are not hit by Harvey are on course for their best quarter in two years amid fears of fuel shortages that helped push profit margins for making gasoline up as much as 21 percent on Monday <RBc1-CLc1>. The U.S. refining industry enjoyed strong margins in recent weeks and the fallout from the hurricane is likely to extend the bullish run for weeks. Midwest refiners have the added advantage of pricing their fuel based on benchmark prices in the Gulf Coast markets…
Another Quarter of Weak Results Looms for U.S. Refiners
U.S. independent refiners such as PBF Energy and Phillips 66 are expected to report another quarter of disappointing profits in coming weeks, as hopes that a record summer driving season would turn the industry's fortunes around do not appear to have materialized. U.S. refiners are in the midst of their worst year since the shale boom began in 2011. High fuel inventories have punished margins this year, forcing some refiners to voluntarily cut production, delay capital work, lay off workers and slash employee benefits. With margins expected to remain under pressure, relief is not coming anytime soon, analysts say. Overall supply levels are still elevated, and the cost to meet U.S.
Four Years after Rescue, U.S. Refinery in Crisis
A deal struck in 2012 to save the U.S. East Coast's oldest and largest refinery seemed to have all of the right elements for success: private investors, big oil and taxpayer funding, and the promise of a private-public partnership that would help job growth and consumers. Four years after private equity firm Carlyle Group and a partner purchased Philadelphia Energy Solutions, the refinery faces another existential crisis. A sharp decline in the price of oil sourced in North Dakota has hammered profits across the sector with layoffs mounting. Capital projects are now on ice after an industry-wide earnings slump.
NARL Refining to Layoff 130
NARL Refining notified employees Wednesday of plans to shed up to 130 jobs at its Come By Chance refinery in Newfoundland, Canada, the latest refiner along the Atlantic Coast to undergo painful belt-tightening amid weak margins. The cuts revive an uncomfortable question for the remaining refineries along the U.S. and Canadian Atlantic Coast: will they all survive the current market downturn? "They remain the most vulnerable," Sarah Emerson, a managing principal at ESAI Energy LLC. The bulk of the job cuts at the Canadian refinery, about 100, will come from union ranks, according to two sources familiar with the plant's operations.
Philadelphia Energy CEO Rinaldi to Retire in March
Philadelphia Energy Solutions Chief Executive Officer Phil Rinaldi plans to retire effective March 2017, according to a memo sent to employees on Tuesday and obtained by Reuters. Rinaldi has helmed the privately-held company since 2010, when The Carlyle Group and Sunoco formed a joint venture to buy the largest East Coast refinery, which was on the brink of closure. "We took the company off life support with help from The Carlyle Group," Rinaldi said in the memo. "We invested more than $700 million modernizing the plant, improving efficiency and hiring a net 240 people since the time of the acquisition," he said.
