Tag: expansion

Shell to GO AHEAD with Port Arthur Expansion!

Shell has given the THUMBS UP to a joint expansion project with Saudi Refining at its Port Arthur, Texas refinery facility. The monumental increase in production will make it the largest refinery in the United States. After all, it is ADDING 325,00bpd, over TRIPLE the size of Detroit’s Marathon refinery (100,000bpd). Once complete in roughly 2010, Shell will boast over 600,000 barrels of refining capacity per day. Thats just 340,000 barrels less than the largest refinery in the World (see post below).

More from Reuters:

NEW YORK (Reuters) – Shell Oil said on Friday it has decided to go
ahead with a 325,000 barrel-per-day capacity expansion of the Motiva
refinery in Port Arthur, Texas.

The refinery is owned by Motiva Enterprises, Shell’s refining and marketing joint venture with Saudi Refining.

Motiva said in a separate statement that it has got the go ahead to
begin construction from both its owners and has awarded the main
construction contract to a Bechtel/Jacobs joint venture.

Shell, the U.S. unit of Royal Dutch Shell, said the expansion is equivalent to building the first new U.S. refinery in more than 30 years.

The expansion will increase the refinery’s crude oil throughput
capacity to 600,000 barrels per day, making it the largest refinery in
the United States, and one of the largest in the world, Shell said in a

Yay! I can’t believe it. I’m somewhat ecstatic at the announcement. Stay tuned, more news on expansions coming in just moments.

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ConocoPhillips eyes Illinois for refinery expansion

Well, seems the hot idea these days! I suppose we can’t complain too much. High gasoline prices have put “a few more cents” in the pockets of large oil companies, raising the amount of money they spend on their infrastructure.

ConocoPhillips is awating approval for a significant increase in production for their Wood River, IL refinery.

A $2 billion expansion of the ConocoPhillips’ Wood River Refinery
in the SW Illinois portion of the region, that will ensure the
facility’s commercial viability for decades—even as alternative
fuels gain in importance—is moving towards final approval in
early October.

If, as expected, the investment is approved by the directors
of ConocoPhillips and its partner in the project, TransCanada
Pipelines, the refining capacity at Wood River would increase
from 306,000 barrels of crude oil daily to between 360,000 and
370,000 barrels a day. The increased capacity would come on
line in 2010.

Even more significant than growth in the amount of crude that
could be processed is the fact that the Wood River facility
would be able to process more Canadian crude, called “sand oil,”
because it is essentially oil-saturated sand. This lower quality
raw product is much more expensive to extract and difficult
to refine, but the supply is plentiful and reliable.

I bet I’ll find more expansion news in a few moments! 🙂

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More refining capacity in order for Great Lakes states?

Looks like another company trying to hop on the bandwagon to add capacity to refine Canadian sand crude. The story from CNNMoney.com:

SUPERIOR, Wis. (AP)–Murphy Oil (MUR) is meeting with Wisconsin environmental
regulators and federal officials as it considers a $6 billion refinery
expansion. The El Dorado, Ark.-based company wants to know what permits would be needed
and what regulations it would face for expanding its operation along Lake
Superior. City officials say the possible expansion would boost refinery capacity from
35,000 to 235,000 barrels a day. Refinery manager Dave Podratz says the discussion involves the Wisconsin
Department of Natural Resources, the Army Corps of Engineers and the U.S. Fish
and Wildlife Service.

As long as it doesn’t infringe on pristine Lake Superior, I’m for it. Quite a plan from Murphy Oil. Any increase like they have planned would do the Midwest a huge favor. Less dependence on the Gulf States for finished gasoline is excellent. I hope Wisconsin officials approve. Stay tuned for more.

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Shell President: Time to Increase Refinery Capacity

Well its ABOUT time! I’m actually quite surprised that its Shell Oil Co. that is making this announcement. Usually in my mind, Shell is the company that tried to run up prices. For them to make a comment that they’re close on doubling capacity at a refinery, you know they must be raking in the money.

Here is the story from Reuters:

NEW ORLEANS, Sept 18 (Reuters) Shell Oil Co. President John
Hofmeister said conditions are favorable for an increase in
refining capacity as the company moves closer to a decision on
doubling the size of a joint-venture refinery in Texas.

“We make long-term decisions,” Hofmeister said. “We think
that the long-term supply relationship with the marketplace
says it’s now time for more manufacturing capacity.”

Shell has said it and joint-venture partner Saudi Refining
plan to decide by the end of the year on increasing refining
capacity at the 285,000 barrel per day (bpd) Motiva Enterprises
refinery in Port Arthur, Texas, to 600,000 bpd.

The boards of directors of both companies will have to sign
off on the expansion, which the company hopes to finish by 2010,
but which will affect its future for 25 to 30 years, he said.

We’ll see if it materializes, and if it does… WOW… it’d be (I believe) the largest refinery in the U.S.

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Marathon: New refinery expansion promises broken promises

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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BP reverses course, pledges NO INCREASE in Lake Michigan discharge!

Great news! BP has agreed NOT to increase their discharge limits even though they had been allowed via a foolish EPA ruling.

Thanks to all those who signed the petition- I would have expected BP to cooperate with what the citizens of MANY states demanded. The press release: http://whiting.bp.com/go/doc/1550/169779/

Warrenville, IL- BP America today promised to operate its
Whiting refinery to meet the lower discharge limits contained in the
refinery’s previous wastewater treatment permit. 
 “We have participated in an open and transparent permitting process
with the State of Indiana and obtained a valid permit that meets all
regulatory standards and is protective of water quality and human
health.  Even so, ongoing regional opposition to any increase in
discharge permit limits for Lake Michigan creates an unacceptable level
of business risk for this $3.8 billion investment,” said BP America
Chairman and President Bob Malone.

BP has obtained regulatory approval to increase average daily discharge
limits for ammonia from 1,030 to 1,584 pounds per day and for total
suspended solids (TSS) from 3646 to 4925 pounds per day to modernize
the Whiting refinery and greatly increase the amount of Canadian heavy
crude it can process.

During the next 18 months, BP will continue to seek issuance of other
permits, continue project design and explore options for operating
within the lower discharge limits.  BP America notified the State of
Indiana of its decision late yesterday afternoon and reiterated its
dedication to the proposed refinery expansion.

“We are committed to this project.  It is important for the nation, it
is important for the Midwest, and it is important to BP and to the
thousands of BP employees in the State of Indiana,” Malone said. “We
are going to work hard to make this project succeed.”

“We will not make use of the higher discharge limits in our new
permit,” said BP America Chairman and President Bob Malone. “We’re not
aware of any technology that will get us to those limits but we’ll work
to develop a project that allows us to do so.  If necessary changes to
the project result in a material impact to project viability, we could
be forced to cancel it.”

BP has already agreed to participate with the Purdue Calumet Water
Institute and the Argonne National Laboratory in a joint effort to
identify and evaluate emerging technologies with the potential to
improve wastewater treatment across the Great Lakes.  Malone announced
today that BP will provide a $5 million grant to Purdue University to
help underwrite the research effort.

The $3.8 billion project is designed to increase the amount of Canadian
heavy crude processed at the more than 400,000 barrel-per-day refinery
from 30 to 90 per cent and also creates the capacity to increase
production of clean fuels by 1.7 million gallons a day.  The project
will create 2000 construction jobs and 80 permanent jobs.

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