Thoughts on the success of Phillips 66 rodeo renewed plant in CA? They state that everything seems to be going good online and running at full rates 50MBD... but something seems to tell me otherwise?!
How long until we will know if this is going to actually workout or be profitable?
The renewables are highly dependent on the tax credits which are not firm but are ambitious. The long term payback will also be largely tied to the credits (read - subsidies)
CA was the right place to do it specifically because of the the benefits to the regulatory requirements.
Are we really comparing Alliance to the world’s largest refinery…. If the dump can’t turn a profit one year out of ten then it’s not worth a damn to anyone. Our only mistake there was not shutting it down a decade sooner, but leave it to management to mismanage its assets.
As a wise man once said, you can count on P66 doing the right thing after exhausting all other options.
And the world’s largest refinery has a Nelson index of?
Naw, you just need to make Rodeo renewed a special k refinery. Look at the market value that Californians pay for that product.
Literally, other than the tankage and the land, there was nothing there that you could convert into a biofuels plant. Place was hardly even a refinery. What? 7 Nelson complexity?
A hydrocracker might be around the cost overrun….
Alliance didn't have the kit. Only reason Rodeo was a good candidate was the the hydrocrackers.
Shoulda converted alliance and stayed in a deregulated state.
For those who think this will add significant bottom line to the company, consider that 50,000 bpd = just 2.5% of P66's 2 million BPD daily refinery production. Second, this is only a transition step toward reducing greenhouse emissions. Within a decade, production at this facility will likely be curtailed due to more severe regulations as the effects of climate change continue to become more severe. End of the day, biofuel or petrofuel both pump gigatons of CO2 into the air when combusted.
That’s just a small fee to get a promotion up the corporate ladder. I mean, that’s the cost of business right? He got his 1 and RSU’s.
Rodeo lost $55 Million last quarter. I'd say it's going great!
But, but, but, they said this was going to add $700,000,000 annually to the bottom line.
Surely they wouldn’t lie about something like that.
Ha, ha, ha!!!
The problem isn't whether they are operating well, it's that the quantities being produced are tiny and probably limited by feedstock availabilty. There's only so much used cooking oil to go around, ya know?
This will never be a significant addition to overall profit, but has much more PR value. The board now has something shiny to point at to suggest that P66 is really doing something about climate change.
Going to take a while to pay off that over run? #ROI
Peter is an a--hole how don't want P66 and its employees to succeed
I think they’re running pretty good but the margins and the renewable credits are not as high as anticipated. Uh Oh!!!