Here is update on closure Sunoco’s Marcus Hook Refinery – moved months ahead of its July 2012 announced date. As article mentions it is second of 7 Delaware River refineries that Pew family built into a major Sunoco refining oil company.
The local politicians and labor groups have made lot angry comments but the anti-oil industry atmosphere, barrier against expansion and crushing environmental regulations of East Coast were responsible for all these older, sweet crude refineries becoming un-economic in todays market. The realization of jobs lost, tax base income loss & supply offset for fuel demand pricing realizations come too late and too little appreciated by pervasive liberal attitudes against oil industry. Particularly hard hit for area refineries was change on distilate diesel & Fuel Oil Sulfur specs/regulations on East Coast where produced EC product had 40% in High Sulfur range that required major capital investments & even then would see severe hit on plant profitability.
The East Coast has now pulled ahead of West Coast/California in killing off vital US refining operations concentrated now in just 7 states and 3 regions (East, West & Gulf Coast) which supply the other 39 states who have little to no refining operations comparatively. The smaller total number refineries on East Coast and larger number closures/terminal conversions/removal -will make the results region gas/diesel cost felt quickly.
East Coast Refinery Body Count: Sunoco Marcus Hook 178MBD is now closing Dec 2011; COP Trainer 185MBD to close 4Q2011, Sunoco Westiville 150MBD (idled since 2010) rumored dismanteled & moved India by 1Q2012; Sunoco Philadelphia 300MBD to sell /convert terminal July 2012; and recent Western Yorktown 70MBD (economic idle 2009) sold Plains All-American P/L mostly for terminal & its Colonial Crude P/L assets Dec 2011.
The closure of Valero’s Delaware 190MBD (S/D 2009 – sold Jul 2010) & Paulsboro 185MBD (sold Dec 2010) refineries were reversed by sales to Omalley’s PBF Energy Co which has restarted both coking refineries with limited investments for fuel sulfur – but economic outcome will still be open for review.
Regards