By clicking Accept all you agree that Yahoo and our partners will process your personal information, and use technologies such as cookies, to display personalised ads and content, for ad and content measurement, audience insights, and product development. The refinery had already been idle for a decade before restart. Enter your email address to follow this blog and receive notifications of new posts by email. HOUSTON, April 21, 2022 /PRNewswire/ -- LyondellBasell (NYSE: LYB) . Justin Sullivan/Getty Images Contrary to claims from Trump and other Republicans, Biden has not "shut down" American energy: US crude oil production in Biden's first year was higher than in each of Trump's first two years. You can change your choices at any time by visiting your privacy controls. Prices have edged down by a few cents in recent days, but remain elevated. FCA is shutting down part of its massive Toledo manufacturing . Refineries Shutting Down. Things are fine everywhere else, right?. Global refining, which is vital for producing fuels like gasoline and diesel, decreased by 1.4 million barrels a day between 2019 and the first quarter of 2022, according to the International Energy Agency. U.S. District Judge Terry A. Doughty in Louisiana struck down Biden's Jan. 27, 2021, executive order in June, dealing a major blow to the president's plans to cut greenhouse gas emissions from . The same thing is happening across Europe, With Neste closing the Naantali refinery which has previously refined 55,000 barrels per day (bpd), and Gunvor closing the loss-making Antwerp refinery previously dealing with 115,000 bpd with no plans to reopen it if the market picks up. David Ryder/Getty Images David Blackmon is a Texas-based public policy analyst/consultant. There are examples of this approach from across Europe: Total is planning to convert the Grandpuits refinery in France which has been temporarily shut down since February this year into a biofuels and plastics recycling complex. Crude oil production stopped and was permanently shut down in 2017. Refiners turn crude oil into usable products like gasoline, diesel, and jet fuel. The Houston Refinery is currently operating as planned, LyondellBasell said in a statement Tuesday to The Daily Caller News Foundation. 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. In what is possibly his most irrational action yet related to energy policy, President Joe Biden on Wednesday lashed out at oil refiners for shutting down too much refining capacity in recent years. Some refineries shuttered during the pandemic-induced recession in 2020, when demand for gasoline took a nosedive. 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Previously worked at Euromoney Institutional Investor and CNN. (AP Photo/David J. Phillip), Energy Information Administration reported. These are the refiners that have closed or cut capacity: Lyondell said in April of 2022 that it would permanently shut the refinery by year-end 2023, as it was unable to find a buyer and did not want to invest to keep the facility open. Thursday, May 12, 2022. are a crude refinery and a synfuels refinery after the biggest crude oil refinery ceased refining at the end of March 2022. "The narrative until today was that we were going to be driving electric vehicles by the end of the year. What capacity that has been added since that time has been the result of expansion of pre-existing refineries and the building of smaller facilities with less than 50,000 bopd capacity and are thus exempt from certain EPA permitting processes. 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. U.S. refiners throttle back Q1 output after record 2022 runs By Erwin Seba . It's no surprise that this is raising eyebrows, given the president's stated goals on an energy transition and also his promise to voters on the campaign trail that he would "end fossil fuels.". Get access to more than a decade of story archives. The U.S. had five fewer refineries at the beginning of this year that at the beginning of 2020. The supply is not meeting the demand for gas and that is what is keeping prices going up, especially on the West Coast, John Treanor, an AAA spokesman, told The Press Democrat. Not all of those refineries have come back online. Information about your device and internet connection, like your IP address, Browsing and search activity while using Yahoo websites and apps. Not all of those refineries have come back online. And there's a good chance it never will. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. LYB By Mike Lee | 06/16/2022 07:17 AM EDT LyondellBasell plans to shut down its Houston refinery at the end of 2023, impacting 550 jobs. Overall, operating U.S. refineries had a capacity of about 17.7 million bpd of oil and produced about 9.5 million bpd of gasoline, 4.7 million bpd of diesel fuel and 1.3 million bpd of jet fuel in 2021. Reports on oil and energy, including refineries, markets and renewable fuels. Image Drilling for oil . Underpinning the decisions not to reopen refineries is the fact that the U.S. is undergoing an energy transition from fossil fuels to renewables. Our Standards: The Thomson Reuters Trust Principles. Reports also came in on Monday. Since it opened, more than half the refineries in the U.S. have closed. This needs to last me for a couple weeks.. According to our annual Refinery Capacity Report, 2021 was the second consecutive year of decreasing refinery capacity. When the pandemic hit and demand for oil evaporated during the recession, refineries took a big financial hit when the price of gasoline plummeted. In 2011, the refinery was idled. This is a family newspaper, please use a kind and respectful tone. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); This site uses Akismet to reduce spam. The bottom line here is that this is a problem that has been a long time coming. Shutdowns, or at. At a time when gas prices are at the highest level in history, hurting regular Americans, he points out that Big Oil companies are enjoying record profits. The refinery became unprofitable as COVID-19 spread across the United States. The end of the Keystone pipeline is also troubling for the oil gas . The U.S. hasn't constructed a major petroleum refinery since 1977 even as fuel demand and domestic oil production have surged in recent decades. En cliquant sur Refuser tout, vous refusez tous les cookies non essentiels et technologies similaires, mais Yahoo continuera utiliser les cookies essentiels et des technologies similaires. The payment will decline to zero if margins increase to $10.20 per barrel. "The Houston Refinery is currently. 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. PATRICK DE HAAN: There's been a tremendous challenge with the refineries being able to meet demand that has resurged as the economy continues to gain momentum post-COVID. Refinery maintenance along the West Coast is being blamed for the sudden spike in the cost of gas across California after weeks of downward trending prices. No portions of this website may be reproduced, retransmitted, copied, or republished without expressed written consent from Shore News Media & Marketing, LLC. Valero's (NYSE: VLO) Texas City 225,000 bpd refinery has also shut down. Thus, the President whose administration has been actively trying to limit the domestic oil industrys ability to get its business done is now so desperate to shift blame for high gasoline prices that he resorts to the pretense of being disappointed that that has been happening. 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. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Some refineries shuttered during the pandemic-induced recession in 2020, when demand for gasoline took a nosedive. Diesel fuel supplies have hit all-time lows on the East Coast and gasoline prices have soared to multiple records in recent weeks. Three of the refineries in question were run by the largest US refiner of crude oil, Marathon Petroleum, while one was run by Shell and the other by independent HollyFrontier, illustrating the fact that this is an issue which cuts across operators and impacts the industry as a whole. In Louisiana, another refinery was wiped out by Hurricane Ida. As for turning back on idled refineries, that's not a quick fix either. That's left the country unable to meet its fuel needs as more people are commuting, traveling and driving as they emerge from the throes of the pandemic. By Alex Kimani - Dec 29, 2022, 11:00 AM CST. 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. Of the two remaining Australian refineries, Geelong in Melbourne is the largest, with a capacity of 128,000 bpd, but is by no means guaranteed to remain in operation with the owners, Viva Energy, accepting a government subsidy but refusing to rule out closure. if(window.innerWidth<=1023){var write_html='
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