Tuesday, October 23, 2012

The Closure Of The U.S. Oil Refinery Industry

In The Past 2 Years In 2010, there were 149 operable U.S. refineries with a combined capacity of 17.6 million barrels (2,800,000 m3) per day. Something odd started happening in late 2010-early 2011. The US oil refinery industry quietly announced the closure of numerous US oil refineries.Many are completely unaware the US ships oil overseas to be processed. We do so, as we do not have enough refineries to process the vast amounts here, and, we are barred from building anymore refineries. All refineries perform three basic steps: separation, conversion, and treatment. Pretty simple.

Several reasons include technical and economic factors as to why we ship it overseas to be processed.

1. The crude petroleum is sold to the highest bidder, NOT the nearest bidder

2. There are different kinds of crude oil, such as sweet/light and dark/heavy. They have different applications and uses.

3. Different kinds of refining processes are needed to make different products from the crude oil. Petroleum is processed to make lots of products other than gasoline, like plastics and asphalt.

4. Politics, unions and the "environmentalists"

How many of you are aware Sunoco, ConocoPhillips and The HESS Corp are all closing US oil refineries? Not many, as the media refuses to give this HUGE story coverage. My guess is that if Americans understood the complete truth to how we are being sold out, and enslaved there just might be the much needed revolution to turn this country around.

Last September, both Sunoco & COP announced plant closing, effecting thousands of workers. Sunoco announced they are completely getting out of the oil industry. Closing up shop. They are done with the US oil industry.

Sunoco is closing it's 2 oil refineries in July 2012 in Philadelphia and Marcus Hook, Pa. Those 2 facilities alone process over 500,000 barrels a day.   http://abclocal.go.com/wpvi/story?section=news/local&id=8343372

Also last year, ConocoPhillips announced 2 plant closings for sure in Trainer, PA and Bayway, NJ., the other 3 plants are undecided as of today.  http://stillwaterassociates.com/index.php?option=com_content&view=article&id=139:us-east-coast-refinery-for-sale-whos-buying&catid=40:white-papers&Itemid=155

Conoco also announced they were closing their Alaskan refining facility:http://www.delcotimes.com/articles/2011/09/28/news/doc4e828f2ba723a246763254.txt

Just a week ago, the US 3rd largest oil refinery owned and operated by The HESS Corp just announced it's permanent closure. Costing over 2,000 jobs, and affecting 950 contractors:  http://www.tucsonnewsnow.com/story/16543753/major-oil-refinery-to-close-in-us-virgin-islands

Refineries on the East Coast of the US supply 40% of the gasoline sales and 60% of the diesel and other fuel oils.

Of that, HALF that comes from the Sunoco & ConocoPhillips plant closures. When ConocoPhillips announced that it was closing the Trainer refinery, Willie Chiang, then ConocoPhillips' Senior Vice President of Refining, Marketing, Transportation and Commercial, noted that their decision to sell, like Sunoco's, was based on unfavorable economics caused by a competitive and difficult market environment characterized by "...product imports, weakness in motor fuel demand, and costly regulatory requirements."

They are ALL closing up shop due to gov regulations, union demands and excessive operating costs brought on by the Gov regulations.

Then you have the unions, led by Barry's buddy, Leo Gerard, saying they will close ALL US oil refineries starting from the east coast to west coast today.   http://www.reuters.com/article/2011/09/23/usa-oil-refinery-labor-idUSS1E78M0T620110923

The unions are shutting down ports, rail and air across the pond right now......the SAME EXACT thing they plan on doing here. When the ships stop importing, the rails & air stop delivering....how much is everything you consume going to cost? Remember...we are a CONSUMING country, no longer a producing one.  http://www.hellenicshippingnews.com/News.aspx?ElementId=37873cee-2b75-4aa0-86ac-5336e56a4c04

The excessive and costly gov regulations on the US oil refinery market has forced companies to re-evaluate the cost of doing business in the US.

Why have operations in the US where you bleed money via regulations & demands, when you can have refineries built in Columbia, Mexico or Brazil for pennies on the dollar, and less regulations?
It's all business America ...nothing personal.

Besides.....your gov is giving BILLIONS to Columbia and Brazil to build refineries to process all that oil the US is losing.

We are building up every country on earth, while destroying our own....all in the name of redistribution of wealth.

I covered some of these "deals" Barry inked in my previous note:
https://www.facebook.com/profile.php?id=100003192895784&sk=notes#%21/note.php?note_id=145148522268243 You do the math. When the US oil refineries finally close up shop, who will process all that oil....and how much do YOU think that oil will cost when it's ALL processed over seas?

Think gas and energy costs are high right now? Wait 6 months. You haven't seen anything yet.

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