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Marathon Petroleum To Idle Two Refineries Indefinitely

wallew

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#1
Marathon Petroleum To Idle Two Refineries Indefinitely
By Irina Slav
Aug 03, 2020


Marathon Petroleum will idle two refineries indefinitely, transforming them into a terminal and a renewable diesel facility, the company said in an update.

“On July 31, we informed employees at our Martinez and Gallup refineries that we will indefinitely idle these facilities with no plans to restart normal operations,” Marathon Petroleum said. “As part of these changes, Martinez will be converted to a terminal facility. We are also evaluating the strategic repositioning of Martinez to a renewable diesel facility, which aligns with California’s Low Carbon Fuel Standards objectives and MPC’s greenhouse gas reduction targets.”

The Martinez refinery has a capacity of 166,000 barrels per day, and the Gallup facility has a capacity of 26,000 bpd. Both were idled in April amid the slump in fuel demand resulting from the national lockdowns in most of the world in response to the coronavirus pandemic.

Even with the transformations, the move will mean layoffs, as “Indefinite idling unfortunately means most jobs at these refineries will no longer be necessary, and we expect to begin a phased reduction of staffing levels in October,” Marathon Petroleum said.

In a separate news report, Marathon Petroleum said it had struck a deal with 7-Eleven to sell its Speedway gas station chain for $21 billion. The company said it would pocket some $16.5 billion after the all-cash transaction, which it would use to strengthen its balance sheet and return capital to shareholders.

Refiners have been under a lot of pressure lately, with analysts warning there is too much refining capacity in the world given the latest trends in demand for fuels. Some of this capacity will need to close or transform as the outlook for demand remains pessimistic. Many refiners could go bankrupt unless they adjust to the new reality, Wood Mackenzie said in a recent report, noting that the more complex refineries would do better than the rest.

https://oilprice.com/Latest-Energy-...leum-To-Idle-Two-Refineries-Indefinitely.html
 

AgAuGal

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#2
Indefinitely, yikes
 

the_shootist

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#3

ZZZZZ

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#5
doesn't indefinitely mean until they decide to open it again?
"Indefinitely" is the opposite of Trickie Dickie Nixon's' "temporary" suspension of gold convertibility in 1971.:belly laugh:

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wallew

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#6
I always BOLD, ITALIC AND HIGHLIGHT in RED - the part of the article where they actually give a 'proviso'

The 'provisio' was the assumption that we would remain at low levels of consumption of oil for the next year or PERMANENTLY. Nothing could be further from the truth.

Hence the reason I BOLD, ITALIC AND HIGHLIGHT it in RED. The writers over at oilprice.com LOVE to say silly stuff and then give a 'well it COULD happen if this and this and this happens'.

So, are you accepting the fact that the current level of oil usage will remain forever as low as it is now? I don't. We as a country AND THE WORLD won't remain at lower oil consumption for the next few years. Because if it is, the economy will be in the sheeter.

Just sayin, this 'dip' in oil consumption is just that. A DIP. NOT A 'NEW NORMAL'...
 

Casey Jones

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#7
Marathon just sold their chain of Speedway gas stations/convenience stores to 7-11, which is owned by a Japanese company.

read more: https://www.foxbusiness.com/markets...lls-speedway-to-7-eleven-owner-for-21-billion
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Marathon, like Chevron, like Union Oil...appears poised to getting out of gasoline retailing.

With all the Little Hitler state officials running about, in Blue States...ready to arrest gasoline retailers and shut down chains for "price gouging" (charging more for their product than the State consents to)...they probably figure it's a good plan, getting out.

Speedway is a big chain of gas-and-gorge convenience stores in the Midwest. Ohio was Marathon Country, back when the independent was based in Findlay, Ohio. Speedway stations on every busy corner in the Cleveland-Akron area.

To just sell them to 7-Eleven, which has been in free-fall for 30 years...suggests Marathon knows something ugly is about to appear, or grow big.
 

ZZZZZ

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#8
There are 3 Speedways in my town, but no 7-11s. Will be interesting to see how things change.

BTW, all convenience stores/gas stations make much more profit on a gallon of soda than on a gallon of gasoline.
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Casey Jones

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#9
There are 3 Speedways in my town, but no 7-11s. Will be interesting to see how things change.

BTW, all convenience stores/gas stations make much more profit on a gallon of soda than on a gallon of gasoline.
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Yup.

There were goo-gobs of 7-Elevens in Cleveland; and with one of the periodic retrenches of The Southland Corporation, all of Cleveland was closed.

Sold to various local Pakis. You can imagine how they ran them. Last time I was in my old neighborhood of Cleveland, 12 years ago, over half of the former 7-Eleven stores were closed and abandoned or demolished for a vacant lot.

As noted, Seven&Co, the Japanese company that started as a corporate franchisee of Southland, now owns the whole shebang. In some ways that may be good - the Japanese obsession with cleanliness, that 7-Eleven had in its early years, but which went away. Seems that's part of the natural trend of convenience chains - Sheetz and Kwik-Fill now have that reputation, but that won't last.

BUT. Marathon gasoline was always good gasoline. No fears buying it from Speedway. Now...Speedway as just a store brand...what kind of rotgut petrol are they gonna be selling?
 

Buck

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#10
First:
Notice there are no States initially mentioned?
Martinez is in California and I KNOW, no other State but the West Coast gets any of California's gasoline

That facility will not re-open, call it a hunch...California is after our gasoline vehicles and will NEVER let that go until they succeed where we're all using skateboards...they'll find a reason to tax us 'to help make every trip a downhill run'...stupid communists, that's what our gasoline cars are for

anyways:
Gallup, New Mexico, idk anything about NM but don't count on Martinez to ever come back on-line...period


i could be wrong; if the political environment changes here things could get better, but, don't count on that either, they'll steal this next election also...
 

EO 11110

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#11
they bought a monster texas refinery from bp a few years ago. then announced a large expansion of it. buck, i think you may be right about the cali formulation/regs
 

GOLDBRIX

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#12
Marathon just sold their chain of Speedway gas stations/convenience stores to 7-11, which is owned by a Japanese company.

read more: https://www.foxbusiness.com/markets...lls-speedway-to-7-eleven-owner-for-21-billion
PLUS
"...The deal, which is expected to close in the first quarter of 2021, includes a 15-year fuel supply agreement for about 7.7 billion gallons per year associated with the Speedway business, said Marathon, the largest U.S. refiner by volume.
($$$$$$$$$$$%$$$$)

More Here: https://www.reuters.com/article/us-marathon-ptrlum-speedway-seven-i-hldg-idUSKBN24Y0RT (also heard on Fox Business)
 

Buck

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#13
that guarantees a supply chain for a while, seems reasonable...



I'll wave to you other guys as you drive on by while I sit here in line to get my next tank-full...I'm gonna have to show ID, i'm certain
 

AgAuGal

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Pyramid

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#15
Sucks to see any business have to shut the doors, lay off employees etc. due to this covid recession.

With that being said, the 2 refineries shutting down have a combined <200,000 bpd. The total US refinery capacity is nearly 18,000,000 bpd. Not trying to be coarse here, but that's a relative drop in the bucket. Hope they can reconfigure operations and save some jobs that are important to the local economy.
 

EO 11110

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#16
Sucks to see any business have to shut the doors, lay off employees etc. due to this covid recession.

With that being said, the 2 refineries shutting down have a combined <200,000 bpd. The total US refinery capacity is nearly 18,000,000 bpd. Not trying to be coarse here, but that's a relative drop in the bucket. Hope they can reconfigure operations and save some jobs that are important to the local economy.
no doubt -- they are tiny by modern standards. the kind of refinery you find off of a dirt road in the country somewhere

in cali they could make some side hustle as movie/tv sets while they are loading trucks/rail cars
 

Treasure Searcher

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#17
If Biden becomes President, there will be alot of pipelines and refineries in trouble. Oil companies are preparing for this.
 

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#18
"Indefinitely" is the opposite of Trickie Dickie Nixon's' "temporary" suspension of gold convertibility in 1971.
It must have been those 'speculators' in the market place....
 

EO 11110

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#19
If Biden becomes President, there will be alot of pipelines and refineries in trouble. Oil companies are preparing for this.
i dont doubt that. but the obama years laid the groundwork for the energy independence today

i was floored when their EPA couldnt find any case to raise against the frackers -- muh groundwater, muh surface, muh pipeline, muh globalist warming.....nada