Forum Discussion
DelCamper
May 24, 2013Explorer
I put in almost 30 years in an oil refinery retiring as a shift supervisor / lead operator. Believe me they generally run them as long as they possibly before maintenance can and often flirt with danger in the process. Its called "calculated risk" in the industry. They try to schedule TAs or "turnarounds" with other required changes or in the more times when margins are low to negative. Shutting down when demand is low allows one to capture the market when demand is high. Its called market forces and separates us from communists.
Typically refinery margins (delta between crude and finished product) account for 30 cents per gallon if your lucky except in very unusual times like Katrina. They will go negative at times. Anything less than 20-25 cents a gallon would be day to day unsustainable and if environmental upgrades are required every bit of that 30 cents gallon would be needed. Refining is the nasty side of the business that the majors distanced themselves from as much as practically possible.
The 90+ dollars a barrel complements of too many USDs is a major culprit.
Typically refinery margins (delta between crude and finished product) account for 30 cents per gallon if your lucky except in very unusual times like Katrina. They will go negative at times. Anything less than 20-25 cents a gallon would be day to day unsustainable and if environmental upgrades are required every bit of that 30 cents gallon would be needed. Refining is the nasty side of the business that the majors distanced themselves from as much as practically possible.
The 90+ dollars a barrel complements of too many USDs is a major culprit.
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