East Coast Refinery Problems

[redflyer65]

http://www.cnbc.com/id/100439950


The bottom line is the East Coast Refineries are in the wrong location, have been for awhile.

From the article..

That's the reason East coast refineries, which rely more on foreign oil than domestic crude, are shutting down. Last week, Hess announced the closure of its Port Reading, NJ refinery at the end of the month. Deutsche Bank estimates about 610,000 barrels a day of refining capacity has been shut down since 2009, excluding Hess' NJ refinery. About 60 percent of the closures have been on the East Coast, according to Deutsche Bank.

 

[General Lee]

So, if you use rail from ND at WTI prices vs Brent Crude prices from Nigeria, that would be good, right? Worldwide airlines usually use Brent Crude prices because it's hard to get WTI prices in Munich. Yeah, using rail cars with cheaper WTI prices might be the better choice.


Bye Bye---General Lee

 

[redflyer65]

So, if you use rail from ND at WTI prices vs Brent Crude prices from Nigeria, that would be good, right? Worldwide airlines usually use Brent Crude prices because it's hard to get WTI prices in Munich. Yeah, using rail cars with cheaper WTI prices might be the better choice.


Bye Bye---General Lee

That's what Delta is betting on, I'm don't think shipping tar sands from ND over rail is going to be very profitable. The future will be interesting for sure.

I agree with Andy on the previous thread. Delta management has been making excellent decisions lately....except probably for this one.

 

[General Lee]

That's what Delta is betting on, I'm don't think shipping tar sands from ND over rail is going to be very profitable. The future will be interesting for sure.

I agree with Andy on the previous thread. Delta management has been making excellent decisions lately....except probably for this one.

You may be right, but if oil does stay high, it might be enough of a spread to allow a profit. Oil prices right now are higher than they usually are at this time of year, and that means high costs for you and me at the pump all Summer. DL may have an advantage.


Bye Bye---General Lee

 

[jonjuan]

You may be right, but if oil does stay high, it might be enough of a spread to allow a profit. Oil prices right now are higher than they usually are at this time of year, and that means high costs for you and me at the pump all Summer. DL may have an advantage.


Bye Bye---General Lee

Moooommmm. The MEATLOAF.

 

[Smarta$$]

Moooommmm. The MEATLOAF.

Laughing... so hard...

 

[trip]

That's what Delta is betting on, I'm don't think shipping tar sands from ND over rail is going to be very profitable. The future will be interesting for sure.

I agree with Andy on the previous thread. Delta management has been making excellent decisions lately....except probably for this one.

It will be profitable if your a super rich large DEM donor that owns the railroad.

 

[NWA-AirGuard]

Other than rail, how else does the oil get out of ND? Trucking it out can't be cheaper.

 

[BoilerUP]

Other than rail, how else does the oil get out of ND? Trucking it out can't be cheaper.

Pipeline?

 

[GogglesPisano]

http://www.fool.com/investing/general/2013/02/08/3-big-myths-about-deltas-refinery.aspx