- Midwest refiners such as Marathon Petroleum (MPC -0.6%) and Phillips 66 (PSX +0.1%) are capitalizing on access to cheap crude from western Canada and North Dakota oilfields, helping the region break its historic dependence on fuel from the Gulf Coast.
- “Ten years ago, we were 1M bbl/day short on products, with the Gulf Coast supplying the product. Today, the mid-continent is flush with products,” MPC CEO Gary Heminger tells Reuters.
- Midwest refiners processed a record 4.06M bbl/day of crude oil in late August and early September, 12% more than the 2016 average, while Hurricane Harvey knocked out half of the Gulf's capacity.
- But analysts warn that weakening U.S. gasoline demand will make it challenging for Midwest refiners to sell their growing production; the Midwest is land-locked, making it hard to get products to new markets, and Philadelphia area refiners are fighting efforts to reverse a pipeline so Midwest companies can move fuel to western Pennsylvania.
- Regional market share battles are expected to intensify as the Midwest is forecast to go from being short ~500K bbl/day of gasoline this year to a ~200K bbl/day surplus by 2030, according to Wood Mackenzie.
- Now read: Marathon Petroleum: Overselling Its Gulf Coast Refining Capacity
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Midwest refiners showing strength as dependence on Gulf Coast subsides
Published 10/23/2017, 10:35 AM
Midwest refiners showing strength as dependence on Gulf Coast subsides
Latest comments
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.