• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 2 hours Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 2 hours Renewables provided only about 4% of total global energy needs in 2018
  • 2 days Iran Captures British Tanker sailing through Straits of Hormuz
  • 2 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 20 hours EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 2 days Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 3 days Today in Energy
  • 6 hours Shale Oil will it self destruct?
  • 3 hours So You Think We’re Reducing Fossil Fuel? — Think Again
  • 4 hours N.Y. Governor Signs Climate Bill
  • 3 hours First limpet mines . . . . now fly a drone at low altitude directly at U.S. Navy ship. Think Iran wanted it taken out ? Maybe ? YES
  • 1 day Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 13 hours U.S. Administration Moves To End Asylum Protections For Central Americans
Bullish Sentiment Fades From Oil Markets

Bullish Sentiment Fades From Oil Markets

With the threat to oil…

Cracks In Gasoline Demand Weigh On Oil Markets

Cracks In Gasoline Demand Weigh On Oil Markets

Slowing economic growth has taken…

Newest Refinery in U.S. Could Fall to Low Oil Prices

North Dakota Refinery

A brand new North Dakota refinery—the only new refinery built in the United States since the 1970s--has been forced to cut production, while its owners and operators are forced to concede that a sell-off might be in order thanks to the consistently low oil prices.

The North Dakota based refinery, owned by MDU Resources Group Inc and Calumet Specialty Product Partners LP, is only running at 75 percent of capacity due to low demand for diesel fuel, which is its main product. Refinery losses over the first quarter amount to $7.2 million.

"In light of current market conditions, we are assessing various options with respect to our ownership interest in the refinery," Dave Goodin, MDU's chief executive, told investors on Wednesday.

Related: Is This The Biggest Red Herring In Oil Markets?

The refinery, which only started selling fuel a year ago, got off to a rocky start with an initial investment of US$430 million—a sum that was 40 percent above original estimates.

The new refinery is one of only two refineries in North Dakota. The timing, however, was not ideal. Crude oil started to slide before the refinery even got off the ground.

In its turn, partner Calumet said the company has started a "comprehensive review of our existing assets," including the North Dakota refinery. "We believe every asset in our portfolio must be financially self-reliant to remain part of this long-term portfolio," Calumet CEO Tim Go said in a statement.

Related: Why Oil Prices Will Likely Drop Below $40 Soon

In its quarterly earnings report, Calumet says it may divest some of its assets, including the refinery.

Under these difficult circumstances, MDU was compelled to use oil from its own wells in order to keep operating the refinery.

The North Dakota’s refinery plight may dishearten other similar initiatives in the state, including the three affiliated American Indian tribes of the MHA Nation who had eyed building such facilities in the state previously.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play