Marathon announced yesterday that it is exploring a $1 billion expansion of its Detroit refinery- holding the promise of stabilizing gas prices in the region and creating some jobs.
Marathon is studying adding a “whopping” 15,000 barrels per day (at BEST possibly 420,000 gallons of gasoline per day) to the refinery. What do I have to say? Lets see- Marathon is trying to get locals to support the project using the “it’ll help YOU in the long run with cheaper gas prices” a VERY easy thing to say, but I see as a total lie. The United States consumes roughly 403,200,000 gallons of gasoline PER DAY, so HOW in the world is another 420,000 gallons “going to stabilize the region”?
Wow Marathon. Try and hit us with that lie in order for us to “support” you? Ha. While I am for the expansion, I am not for lying to the American people and government as to how it will “positively” effect us. Truth be told, Marathon will be raking in millions per day in additional profit.
This expansion comes on the heels of BP’s announced expansion to its Whiting, Indiana refinery. Both Marathon and BP plan to convert part of their refineries to convert heavy sour Canadian crude (which is much easier to ship… via pipeline instead of on boat from the Middle East)
This is a tiny addition of gasoline to the market. Marathon needs to stop up-playing the significance of a couple hundred thousands of gallons of gasoline to a market that demands hundreds of millions of gallons per day.
Marathon already raised the output of its Detroit refinery back in 2005, a much bigger expansion, bringing capacity from 74,000 barrels per day to 100,000. Another 15,000 barrels per day? Not worth the hype Marathon is playing us with.
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