DirtyOil wrote:
looks like more of a distribution issue then a refining issue along with poor execution of the process.
According to the EPA and EIA, the extra hydrotreating process added another 5-7 cents. Some of this was due to the added time it takes, but most was to recoup the billions spent on revamping their facility or building a new refinery as was stated in the article. This is just part of the refinery process because you can't refine fuel without a refinery.
Also, if you read what is stated, the distribution losses are mainly from pumping ULSD through pipes and into tanks that previously had LSD contaminating with higher than allowed sulfur content. Therefore they had to sell it as a higher sulfur content fuel at a loss. This was to be expected since it would be much more costlier to replace every pipe and every tank at a refinery.
Then there was losses due the special transport needs of ULSD versus LSD due to its higher affinity to water which caused accelerated tank corrosion. They added additives (which also increased cost) to combat this, but it does not completely solve the issue.
