Bankrupt Refiner Made Missteps
by Bob Dinneen (Renewable Fuels Association/Washington Times) The oil industry’s campaign to undermine the growth of domestically produced renewable fuels such as ethanol has certainly been ramped up lately. Today they’re callously capitalizing on the financial woes of one of the oldest and least efficient refineries in the country, holding it up as a poster child to undermine public support for the nation’s renewable fuel policy.
PES has been in financial peril for decades. The taxpayers have bailed it out every time. It operates one of the nation’s oldest refineries, is handicapped by hopelessly antiquated technology and is captive to the higher-priced, imported Brent crude index while other profitable refiners have assured supplies of the less-expensive U.S. WTI crude index.
PES could have made a one-time investment of roughly $40 million to install the infrastructure needed to store and blend required volumes of renewable fuels under the RFS. Instead, it spent $832 million to buy credits from its competitors who had over-complied. PES has a management problem, not an RFS problem. READ MORE
Are we next? Delaware refinery workers worry after Philadelphia plant files for bankruptcy (Delaware Public Media; includes AUDIO)
EPA Head Calls for RFS Reform (CSP Daily News)
Pruitt backtrack on fuel standards troubles farmers (Wisconsin State Farmer)
Dry the Starting Tear for PES’s Bankruptcy (Wall Street Journal)
Part 1: Philadelphia Energy Solutions Bankruptcy Basics (Kleinman Center for Energy Policy)
Part 2: Philadelphia Energy Solutions Ch. 11 Fact and Fiction (Kleinman Center for Energy Policy)
Part 3: Philadelphia Energy Solutions Investors Prioritized Stronger Investments (Kleinman Center for Energy Policy)
Part 4: The Speculative Future of Philadelphia Energy Solutions (Kleinman Center for Energy Policy)
Daily on Energy: Philadelphia wins Super Bowl but not the ethanol fight just yet (Washington Examiner)
PES learned a hard lesson about crude-by-rail (Argus Media)
Gov. Carney seeks relief from federal renewable fuel rule (Delaware Online)
What Others Are Saying About the PES Bankruptcy and RINs (Renewable Fuels Association)