Saturday, November 21, 2009
More Refineries Closing in USA
Update 1: January 9, 2010. Shell announced they are closing their refinery at Montreal East, Quebec, Canada. Not technically in the USA, but part of the North American oil market. [end update]
The announcements of U.S. refinery closures is increasing lately, as I predicted earlier. Thus far, four have either closed or announced they will close for economic reasons, and one for safety reasons. One refinery is an interesting case, where a capital expansion project is in startup mode presently, but the existing older refinery with equivalent capacity will be shut down for an extended period.
Refining capacity is in over-supply in the U.S., with operating rates presently below 80 percent. Each refinery closure brings layoffs of hundreds of employees, with the ripple effect of additional jobs lost throughout the community. However, the green advocates insist that there are plenty of green jobs available, so it will be interesting to see if and when these green jobs materialize and put the refinery workers back to work.
Valero at Aruba - shut down (not in the USA, but exports products into the USA)
Valero at Delaware City - shut down announced.
Silver Eagle at Salt Lake City - shut down for safety following massive explosion.
Marathon at Garyville (Louisiana) - starting up new capacity and shutting down older capacity.
Western Refining at Bloomfield (New Mexico) - shut down announced.
Sunoco at Westfield (New Jersey) - shut down announced.
Shell at Montreal East (Canada) - shut down announced.