Thread regarding Phillips 66 layoffs

Cost to restart a refinery

https://www.nationalreview.com/the-morning-jolt/why-diesel-fuel-costs-are-really-rising/

Great article on how recently closed refineries are affecting fuel supply.

The article mentions Alliance - “Phillips 66, for example, would have to spend more than $1 billion to restart its Alliance refinery in Louisiana that was shut after damage from Hurricane Ida, Bloomberg Intelligence estimates.”

The refinery probably had $200 - $300 million in damage/loss from Ida. In another article, Valero mentioned that a refinery they “looked at” would cost upwards of $3 billion to get it up to “Valeros’ standards”.

"Sometimes you get in there and you start looking at it and [my team] tells me it is going to cost $3bn to get it up to Valero standards, and you think maybe that wasn't exactly the best thing," said Valero chief executive Joe Gorder on 26 April. "It is not that these assets are not good or attractive, we just feel we have better uses for our capital than buying a refinery that is on the market at this point in time“

Makes you wonder how bad P66 ran Alliance into the ground (along with other refineries they own), redirecting capital dollars to “green projects”

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It is encouraging that in the last year we’ve gone from “we have too many refineries, more need to be shuttered” to “how do we get these refineries running again”. I’ve seen P66 do 180’s on a lot of decisions in my time here. Wouldn’t surprise me to see them flip on this once the House & Senate flip in November.

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Post ID: @qga+1gNNjZMb

Yeah - and out of that $200 million or so, P66 has probably already spent that on cleanup/repairs/demo, etc. So it does make you wonder how bad of shape it was in before Ida.

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