SOUR CRUDE: Why The Sunoco Refinery Is Doomed

REUTERS: Sunoco’s decision to put its East Coast Philadelphia and Marcus Hook refineries up for sale has probably condemned both to closure. In a world where seaborne light sweet oils are much more expensive than landlocked U.S. crude and heavier and sourer imports, Philadelphia and Marcus Hook are the two worst refineries to own in the United States. Both will struggle to find buyers, unless someone can be found willing to invest large sums of money to upgrade their desulphurisation and coking capacity, enabling them to improve margins by processing cheaper heavier and sourer crudes. With so much pressure on margins and surplus refinery capacity in North America and Western Europe, the prospect of a saviour emerging seems remote. MORE