• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 27 mins Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 3 hours America's pandemic dead deserve accountability after Birx disclosure
  • 1 hour Putin blocks Ukraine access to Black Sea after Joe blinks
  • 5 hours Today Biden calls for Summit with Putin. Will Joe apologize to Putin for calling him a "Killer" ?
  • 3 hours U.S. Presidential Elections Status - Electoral Votes
  • 1 day Fukushima
  • 1 day CO2 Mitigation on Earth and Magnesium Civilization on Mars – Just Add Water
  • 1 day Biden about to face first real test. Russia building up military on Ukraine border.
  • 4 days New Chinese Coal Plants Equal All those in U.S.A
Fracking Survives In California As Senate Blocks Bill

Fracking Survives In California As Senate Blocks Bill

The California Senate’s Natural Resources…

From JFK To Trump: U.S. Oil Production By President

From JFK To Trump: U.S. Oil Production By President

While there are multiple factors…

Shell Is Selling Washington Refinery

Shell is looking for buyers of its Anacortes refinery in Washington, unnamed sources told Reuters, adding that if a sale takes place it would leave Shell’s refining operations in North America concentrated in the Gulf Coast.

The sale would be part of a divestment program announced by the Anglo-Dutch supermajor. It envisages the offloading of $5 billion worth of assets last year and this year, each.

Shell already sold one other U.S. refinery last year, in Martinez, California. The deal, with independent refiner PBF Energy Inc, will see the supermajor get up to $1 billion.

Another refinery, this one in Canada, is also up for sale. That’s the 75,000-bpd Sarnia refinery of Shell in Ontario.

If Shell finds a buyer for the 144,000-bpd Anacortes facility, this will leave it with three refineries in the United States—two in Louisiana with a combined capacity of half a million barrels daily, and one in Texas with a capacity of 340,000 bpd.

Reuters later reported that the Anacortes refinery is the seventh one that has been put up for sale in the United States. The seven account for 5 percent of refining capacity in the country.

Buyers, however, are difficult to find for a number of reasons. These include unfavorable locations, a concern among energy companies about falling refining margins, and the competition prospects given the pending restart of refineries in the Caribbean.

The margins problem, according to analysts, stems from the fact that all refineries are now trying to produce fuels compliant with the new IMO sulfur emissions regulations effective January 1 and this is eating into profits. The U.S. renewable fuel standard is not helping, either.

“When some of your really big companies have stopped buying refineries, that really slows things down,” a Tudor Pickering Holt & Co. told Reuters.

“Refiners don’t want to overpay for an asset with environmental liabilities that might require unknown capital expenditure to meet future requirements,” according to Matt Flanagan, an executive from energy advisory firm Opportune.

By Irina Slav for 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