Potential Impacts of Reductions in Refinery Activity on Northeast Petroleum Product Markets

摘要

This report updates and expands upon a December 2011 U.S. Energy Information Administration (EIA) report, Reductions in Northeast Refining Activity: Potential Implications for Petroleum Product Markets.1 To date, the market transition following the closing of two Philadelphia-area refineries in September and December 2011 has been relatively smooth, but the situation could change. Those closures have been partially offset by the startup of PBF Energys Delaware City refinery in October 2011, which had been shut down in late 2009 by Valero before its sale to PBF Energy. However, if Sunocos Philadelphia refinery, which alone accounted for nearly a quarter of refinery capacity on the East Coast in 2011, were to shut down in July 2012, petroleum product markets in the Northeast could be significantly impacted. Since September 2011, two refineries in the Philadelphia area (ConocoPhillips Trainer refinery and Sunocos Marcus Hook refinery) and one major Caribbean export refinery supplying the East Coast (HOVENSAs U.S. Virgin Islands refinery) have closed. In addition, Sunoco has announced plans to idle its remaining Philadelphia-area refinery (Sunoco Philadelphia) in July 2012 if no buyer is found. The three Philadelphia-area refineries (Trainer, Marcus Hook, and Philadelphia) taken together represented 50% of total East Coast refining capacity as of August 2011.