Refinery economics… WSJ – Commodity Research Group

January 23, 2018 by Jim Colburn Leave a Comment

Here is the Wall Street Journal on the effects of a poorly constructed ethanol program on an independent refinery:

“Philadelphia Energy Solutions LLC affiliates accounting for more than one-quarter of the fuel-refining capacity on the East Coast filed for bankruptcy protection, blaming the steep cost of complying with a federal environmental regulation.”

“If it wants to avoid fines, Philadelphia Energy has to purchase blending credits, exposing the company to an “unpredictable, escalating, and unintended compliance burden” that has cost it $832 million since operations began in September 2012, the company said in court papers. Philadelphia Energy said it paid $13 million to comply in 2012, with the figure rising to $231 million by 2016.“

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