Sunoco to sell or close S. Phila., Marcus Hook refineries

[Sugarcoated]

Source: Philly.com

Sunoco Inc., an iconic Philadelphia company that was long a mainstay of manufacturing along the Delaware River, announced Tuesday it is getting out of the refining business.

Sunoco said it would sell its oil refineries in South Philadelphia and Marcus Hook. If there are no buyers, it plans to close the plants in July 2012.

The move is the latest and most dramatic divestiture initiated by Lynn L. Elsenhans, the chief executive officer who took over Sunoco three years ago and has systematically dismantled what was left of the former industrial giant.



Read more: http://www.philly.com/philly/business/20110906_Sunoco_to_sell_S__Phila___Marcus_Hook_refineries.html?cmpid=125219969#ixzz1XBwWHkP7

[tularetom]

1. While they bitch about environmental rules that make it hard to build new refineries

they close the ones they already have.

They don't want to build any new refineries in the US, they're looking overseas to market their oil. Lots more profits to be made in the developing countries.

[Bonhomme Richard]

2. The fewer refinaries the tighter the supply which leads to.......

higher prices and more profits for them.

[Historic NY]

3. And that to the government incentives & tax breaks .

[Arctic Dave]

4. Bingo!

It is very hard to manipulate a market when you have excess capacity. Same is done in the upstream areas by not developing deposits. Either way they blame the environmentalist when in fact it is them dragging their feet. It's a win, win for them.

[Sugarcoated]

5. I've got mixed feeling about this

My husband works there.

[xchrom]

6. recommend

[FarCenter]

7. It would probably cost too much to retrofit them to refine sour crudes

Sunoco's refineries in Southeastern Pennsylvania have the added disadvantage of relying on more expensive low-sulfur crude as their raw material, which has depressed their profitability relative to other refineries.

Light, sweet crudes, such as west texas intermediate, bonny light, and Libyan are scarce now and will become increasingly rare in the next couple of decades. Refineries that can't handle MidEast sour crudes, Venezuelan sour crude, Alberta bitumen, etc. will likely be shut down, especially in areas with stiff environmental regulations.

[BumRushDaShow]

8. The largest refinery on the east coast. n/t