Philadelphia refinery will close

Philadelphia Energy Solutions (PES) Opens a New Window. is saying it wants to permanently close its oil refinery, one of the oldest and largest refineries on the East Coast, after an explosion and massive fire. The refiner had the capacity to process 335,000 barrels of oil per day or the equivalent of 14 million gallons and is one of the largest suppliers of gasoline on the eastern seaboard. The event caused substantial damage to its building complex and caused the financially struggling refiner to say enough is enough.

This is a situation that has already caused gasoline prices to go up in the Northeast and may cause a domino effect across the nation. As of late June, the national average gas price was down 19 cents year-over-year and expected to drop even lower, according to AAA and averaging around $2.70 per gallon. In Pennsylvania, the average is higher around $2.90.

Philadelphia Energy Solutions had just recently emerged from bankruptcy and was trying to make a comeback as sub-par refining margins and stricter environmental regulations that have made it very difficult to make money. In fact, the government had to forgive Philadelphia Energy Solutions some relief on some renewable energy credits they were forced to buy, that the company said helped drive them into bankruptcy in the first place.

Bad regulations on Renewable Fuel Credits caused the firm to lose millions. The government let them off the hook because they feared that if they lost that refinery, it would drive up gas prices and hurt the consumer. Yet now the company wants to walk away because the cost to rebuild the units that were destroyed is simply not worth it.

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Source: Freerepublic.com

Powered by NewsAPI.org

Keywords:

Philadelphia • Philadelphia • Polysulfone • Oil refinery • Oil refinery • Refinery • Volume • Barrel (unit) • Gallon • Manufacturing • Gasoline • East Coast of the United States • Construction • Gasoline • Domino theory • United States dollar • Pennsylvania • Philadelphia • Bankruptcy • Environmental law • Philadelphia • Renewable Energy Certificate (United States) • Bankruptcy • Regulation • Legal personality • Oil refinery • Free Republic • Free Republic • Management • Copyright • Fair use •