For making clean fuels, 14 US refineries bite the dust
By clean fuels here, I mean conventional (not renewable) clean gasoline and clean diesel that meet clean fuel specifications for sale in the US.
I count 14 US refineries on the casualty list.
These 8 have converted (fully or partly) to renewable diesel in 2021 and 2022:
- Marathon Dickinson ND
- Phillips 66 Rodeo CA
- Valero Norco LA
- HollyFrontier Artesia NM
- Calumet (Montana Renewables) Great Falls MT
- CVR Energy Wynnewood OK
- HollyFrontier Cheyenne WY
- Global Clean Energy Holdings Bakersfield CA
These 6 have been closed or idled for other reasons
- Philadelphia Energy Solutions Philadelphia PA
- Marathon Petroleum Martinez CA
- PBF Energy Paulsboro NJ
- Shell Convent LA
- Phillips 66 Alliance LA
- Phillips 66 Santa Maria CA
All these changes remove refining capacity previously used to make conventional clean fuels.
Meanwhile, demand for clean fuels, and especially clean high-octane gasoline, continues to grow. We are increasingly dependent on importing refined products to make our own conventional clean gasoline, which is what consumers need and are willing to pay for.
That’s why I continue to encourage refining executives to make some low cost, high-return investments to improve their refineries’ ability to produce conventional ultra-low sulfur high octane Tier 3 gasoline.
Hoekstra Research Report 8
Every refining executive should have a comprehensive understanding of the technical, regulatory, and economic aspects of this Tier 3 sulfur credit program and how will affect your profitability. Those wanting a quick education on the Tier 3 issue should get Gasoline Desulfurization for Tier 3 Compliance, which will make you an expert in a day. Once you have become expertly informed of the problem, you can save yourself and your team years of research by buying Hoekstra Research Report 8. We saw the problem coming, gathered the required data, ran the simulations and analyzed the results so you and your team can concentrate on initiating informed remedies that will immediately go to the bottom line. The report includes detailed pilot plant and commercial field test data, full detail of sulfur credit prices, process and economic models to help refineries quickly improve gasoline optimization, investment decisions, sulfur credit strategy and refining margin capture in the Tier 3 world. You will also get the spreadsheet tools we developed that others are using now to help manage Tier 3 gasoline production and credit strategy.
Don’t get caught panic buying after the credits spike!
