Monday, March 19, 2018

Pbf Energy News

Venezuela's Crude Sales to U.S. Falls to 15-year Low in February

Photo: PDVSA

Venezuela's crude exports to the United States declined in February to a 15-year low as oil production continues falling and President Donald Trump's administration weighs new sanctions on the OPEC country, according to Thomson Reuters data. Financial sanctions imposed by the United States in August on Venezuela and state-run oil firm PDVSA have created obstacles for selling crude cargoes to U.S. refiners, shrinking the number of customers PDVSA has in the U.S. In February, PDVSA and its joint ventures sent 21 cargoes to the United States - half the number it exported in recent years - with a total of 378…

U.S. Refinery Workers Push Biofuels Reform

Image Credit: LyondellBasell

A delegation of workers from U.S. oil refining companies that oppose the nation's biofuels policy will converge on Washington on Wednesday to try to convince lawmakers to find a way to lessen the regulation's costs without hurting corn farmers. The trip, organized by the United Steelworkers union, marks the latest move in a battle between Big Oil and Big Corn over the fate of the U.S. Renewable Fuel Standard - a law requiring corn-based ethanol in gasoline that the refining industry says is costing it hundreds of millions of dollars a year. More than two dozen workers from refiners Valero Energy Corp…

Trump Wades Deeper into Biofuel Debate

File Image: A midwest Ethanol Plant / CREDIT AdobeStock / (c) Jason Lee)

U.S. President Donald Trump on Thursday will gather rivals from the oil and corn industries for the second time this week as the administration seeks elusive common ground on reforms to the nation's controversial biofuels law. The meetings come amid rising concern in the White House over the current state of the U.S. Renewable Fuel Standard (RFS), a law requiring refiners to mix biofuels such as corn-based ethanol into their fuel, which has increasingly divided two of Trump's most important constituencies. A refining company, Philadelphia Energy Solutions (PES) in the key electoral state of Pennsylvania, last month blamed the regulation for its bankruptcy.

U.S. East Coast Refiners Slash Light Crude Imports

Reuters - East Coast refiners slashed imports of lighter, sweet crudes from countries like Norway and Nigeria last year as they commissioned new rail offloading terminals to increase use of domestic Bakken and Canadian crudes. By mid-year, new rail-to-barge facilities in Pennsylvania and Virginia will be able to bring in another 200,000 barrels per day of North American crude, enough for refiners like PBF Energy Inc or Phillips 66 to back out their last foreign barrels of some grades. A third facility in New Jersey may add to the flow soon.

PBF Wants Crude-by-rail Offloading in Ohio

Photo courtesy of PBF Energy

PBF Energy wants to add crude-by-rail offloading capability at its 160,000 barrels per day (bpd) refinery in Toledo, Ohio, to increase crude sourcing flexibility throughout the company's three-refinery system, Chairman Tom O'Malley told analysts on Wednesday.   "We certainly want to have rail facilities at our Toledo refinery, which we don't yet have," O'Malley said. The company is increasing rail shipments of North Dakota Bakken and Canadian heavy crude by rail at its Delaware refinery.   (Reporting by Kristen Hays; Editing by Nick Zieminski)

PBF Energy: Its Refineries Will Not Be Affected by Strike

PBF Energy Inc's three refineries will not be affected by the strike by United Steelworkers union workers currently impacting 11 plants, the company said during a conference call with analysts on Thursday. PBF said it settled local issues with local unions at its refineries and agreed to match the wage and health benefits that lead negotiator Royal Dutch Shell Plc and the union eventually agree to implement and that in exchange for this workers at PBF's three refineries had agreed not to strike. Reporting by Robert Gibbons

PBF Energy Expects Slowdown in East Coast Rail Volumes

PBF Energy is expecting rail volumes of Bakken crude oil at its East Coast refineries to drop significantly next year, calling rail deliveries "price challenged," the company said on Thursday.   The company is planning on roughly 25,000 barrels-per-day of Bakken crude to be railed into its 85,000 bpd rail terminal in Delaware City, Delaware, CEO Tom Nimbly said on an earnings call. The terminal was completed in 2013, at a time PBF and other refineries were hailing access to Bakken crude as a savior to the local industry. (Reporting By Jarrett Renshaw)

ExxonMobil Sells Share of Chalmette Refining

Photo ExxonMobil

ExxonMobil has reached an agreement with PBF Energy Inc. for the sale and purchase of its 50 percent interest in Chalmette Refining, LLC in Chalmette, Louisiana. PBF Energy will purchase 100 percent of Chalmette Refining, LLC, which is a joint venture between affiliates of Petróleos de Venezuela, S.A. (PDVSA) and ExxonMobil. The agreement includes the Chalmette refinery and chemical production facilities near New Orleans, La. and the company’s 100 percent interests in MOEM Pipeline, LLC and 80 percent interest in each of Collins Pipeline Company and T&M Terminal Company.

U.S. Midwest Refiners Profit as Harvey Hits Rivals

U.S. refiners in the Midwest will be among the biggest winners after Hurricane Harvey dealt a blow to their competitors on the U.S. Gulf Coast. Refiners such as PBF Energy and HollyFrontier that are not hit by Harvey are on course for their best quarter in two years amid fears of fuel shortages that helped push profit margins for making gasoline up as much as 21 percent on Monday <RBc1-CLc1>. The U.S. refining industry enjoyed strong margins in recent weeks and the fallout from the hurricane is likely to extend the bullish run for weeks. Midwest refiners have the added advantage of pricing their fuel based on benchmark prices in the Gulf Coast markets…

PBF Logistics to Buy U.S. Product Terminals

PBF Logistics LP said on Tuesday a subsidiary would buy four refined product terminals located on the U.S. East Coast from an affiliate of Plains All American Pipeline LP for $100 million, doubling its capacity. The terminals are near PBF Energy Inc's refineries in Delaware City, Delaware and Paulsboro, New Jersey. The acquisition includes 57 product tanks with total capacity of about 4.2 million shell barrels, connections to several pipeline systems, 26 truck-loading lanes and marine facilities capable of handling barges and ships. PBF Logistics said the deal, which will add third-party customers to its revenue base, is expected to close in the second quarter.

PBF Energy Will Look at Citgo Assets for Possible Buy

PBF Energy Inc is looking at acquisition opportunities and talk that Venezuela's state-owned oil company may sell its U.S.-based Citgo Petroleum assets is "certainly something we would follow up on," Chairman Tom O'Malley told analysts on Friday. "... You can assume that we will follow up on absolutely everything. That's our job," he added. O'Malley also said the company had been looking at other opportunities, "particularly in California" because "that's where most of the opportunities have been." (Reporting by Kristen Hays in Houston; Editing by Jeffrey Benkoe)

US Refiners' Group Wants Wide Debate on Oil Exports

The U.S. oil refining industry's association is not opposed to lifting the country's 40-year-old ban on crude exports as long as the move is part of a bigger effort to lower barriers to trade, the group's new head said on Tuesday. "We're not opposed to lifting the export ban, but we would like to think there could be a broader discussion," about all trade barriers in petroleum markets, Chet Thompson, president of the American Fuel & Petrochemical Manufacturers (AFPM), told reporters. Other trade barriers include the Jones Act, which requires ships servicing coastal businesses to be built in the United States and mostly staffed by U.S.

U.S. 2014 Refinery Capacity, Ownership, Updated in EIA Analysis

U.S. Refinery Transactions in 2013: Image EIA

In its 2014  U.S. petroleum refinery update the U.S. Energy Information Administration - EIA - informs that capacity edges up, ownership shifts. As of January 1, 2014, there were 139 operating refineries and three idle refineries with total atmospheric crude oil distillation capacity (ACDU) of 17.9 million barrels per calendar day (bbl/cd), a 101,000-bbl/cd increase in capacity from January 1, 2013. In 2013, four refineries changed ownership, continuing the trend of a handful of sales each year. This information is detailed in EIA's recently released 'Refinery Capacity Report', which surveys U.S. refinery ownership and capacity annually at the start of each year.

Venezuela Ships More Oil to US in July vs June

Venezuela's PDVSA and its joint ventures last month shipped 638,325 barrels per day (bpd) of crude to the United States, a 30 percent increase over June due to larger sales of upgraded oil, according to Thomson Reuters trade flows data. Venezuelan crude output has declined this year to its lowest point in 27 years due to a lack of investment and payment delays to oil service firms, affecting exports to customers in key markets including the United States. Even though the volume of crude sent to the United States in July was larger than the previous month, it was 22 percent below the same month in 2016. The main U.S.

U.S. Oil Export Battle Heats Up as Drillers Group to Fight Ban

More than a dozen U.S. oil producers have joined to lobby the federal government to reverse the 40-year-old ban on U.S. crude exports, a move that supporters hope would create jobs and boost national security, a spokesman for one of the companies and a lobbyist for another one said on Friday. Producers for American Crude Oil Exports, or PACE, is the first lobbying group to form on reversing the ban. "The end game here is legislative repeal of the ban," said a lobbyist for one of the member producers, who did not want to be named because the group was only recently formed.

Oil Drillers Group to Fight U.S. Export Ban

More than a dozen U.S. oil producers have joined to lobby the federal government to reverse the 40-year-old ban on U.S. crude exports, a move that supporters hope would create jobs and boost national security, a spokesman for one of the companies and a lobbyist for another one said on Friday. Producers for American Crude Oil Exports, or PACE, is the first lobbying group to form on reversing the ban. "The end game here is legislative repeal of the ban," said a lobbyist for one of the member producers, who did not want to be named because the group was only recently formed.

EPA Fixes targets with Oil Groups

Oil refiners who have complained that federal regulators missed deadlines to issue rules on blending renewable fuels into the nation's supply of gasoline and diesel fuel are set to get long-awaited targets from the U.S. Environmental Protection Agency. Under a deal the EPA announced on Friday with two oil industry groups who had sued it over persistent past delays, the EPA said it will propose draft biofuel use targets for 2015 by June 1. The agency also said it plans to re-propose biofuel targets for 2014 using the actual volumes of renewable fuels that were consumed last year and to issue targets for 2016. Neither of these moves was part of the legal settlement.

PBF's Delaware Cat Cracker Down for a Month

A key gasoline-making unit at PBF Energy Inc's 182,200-barrel-per-day (bpd) Delaware City, Delaware, refinery is expected to be shut for at least a month - and possibly much longer - following an explosion and fire on Friday, a source familiar with plant operations said on Sunday. The unexpected shutdown of the 65,000-bpd fluid catalytic cracker comes as U.S. refiners run at high rates to soak up the remaining profits of a summer marked by higher-than-expected demand. It's also the latest in a string of incidents that have caused gas prices to spike, even as U.S. oil prices have plummeted.

Venezuelan Crude Sales to US Declined 7% in March

Exports of Venezuelan crude to the United States fell almost 7 percent in March versus the same month of 2015 to 793,581 barrels per day (bpd), according to Thomson Reuters Trade Flows data, affected by delays at the country's main oil port. Even though the sales recovered versus the previous two months, when they hit record lows, the increase was not enough to reach last year levels. State-run oil company PDVSA and its joint ventures sent 52 crude cargoes to the United States last month, according to the data, made with preliminary figures. PDVSA's refining unit, Citgo Petroleum, was the main receiver, along with Valero Energy , Phillips 66 and Chevron Corp.

Vitol: Exxon Mobil Lacked 'transparency' During Torrance Outage

Swiss commodity trader Vitol SA criticized Exxon Mobil Corp this week for failing to be transparent about maintenance at its Los Angeles refinery following a February 2015 blast, which contributed to tighter gasoline supplies and higher prices. Speaking before a committee of the California Energy Commission on Tuesday, Brad Lucas, a West Coast trader for Vitol, said that lack of information from Exxon made it difficult to time cargo deliveries into the West Coast market. The explosion at Exxon Mobil's 149,500 barrel-per-day Torrance refinery, which provides about 10 percent of California's gasoline supply, knocked a gasoline-producing unit offline for more than a year.