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• COLUMN: Delta refines a fallacy

  
  

  Posted by: HP News Services

  Monday May 21, 2012

  
  

  By GREGORY J. MILLMAN
  A Dow Jones Column

  NEW YORK -- Note to investment bankers: start working on your pitchbook for Delta Air Lines to divest its refinery operations. Before long, that pitch will have plenty of support from Delta shareholders.

  Delta decided it could minimize jet fuel costs by investing in a failed refinery, so on April 30 announced the purchase (through a newly formed, wholly-owned subsidiary called Monroe Energy) of the Phillips 66 Trainer refinery complex south of Philadelphia.

  The Commonwealth of Pennsylvania provided $30 million in assistance, so Delta's out-of-pocket investment to acquire the refinery is $150 million, and it plans to spend another $100 million to maximize jet fuel production there.

  The $250 million that Delta says it is investing is 19% of its last 12 months earnings (and 29% of 2011's bottom line), so it's a material number for shareholders.

  There are three problems here. First, Delta...

  
  
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  Tags:Delta Air Lines, Phillips 66, refinery, crude oil, jet fuel, Trainer

• GE aims to promote manufacturing with new Houston training center

  
  

  Posted by: Stephany Romanow

  Tuesday May 08, 2012

  
  

  By Stephany Romanow
  Editor
  
  HOUSTON -- When speaking about Houston, Texas, most individuals think of Space City due to Houston’s long-time connection with NASA and the space shuttle program. Likewise, many individuals consider Houston as an energy center; it is home to many major E&P and service companies.

  More important, Houston is major manufacturing center and home to General Electric’s largest manufacturing center and GE’s Energy Management, Power and Water and Energy business groups.

  John Krenicki, vice chairman, GE and president and CEO, GE Energy addressed the Greater Houston Partnership at a breakfast meeting on May 8, 2012. Krenicki shared GE’s view of the future. Tomorrow’s opportunities involve securing reliable cost-efficient energy resources.

  The future is unconventional fuels and technology will make an impact on how unconventional energy resources are tapped, says Krenicki.

  GE does see a bright future for the US....

  
  
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  Tags:GE, Houston, training

• HPInsight: The global HPI's top May headlines from 1922 through 2012

  
  

  Posted by: HP Editorial Staff

  Monday May 07, 2012

  
  

  Research and development (R&D) has been the platform to support new methods to process transportation fuels and petrochemical products from hydrocarbons. So, how much of the R&D was just straight research vs. finding a solution to a critical issue confronting the industry or the market? Another viewpoint would be: Did history shape the hydrocarbon processing industry (HPI) or did the HPI transform history? In surveying the events and developments over the past 90 years, it is a little of both.

  Crisis is of the seed that forces innovation to solve vexing problems. Often, new products are the fruits of R&D effort directed to solve another task. The HPI continues to reinvest in new technologies to weather uncertain market conditions and unforeseen incidents. Too often, uncontrollable events—natural or manmade—adversely impact the global HPI. The increased interconnection of energy and petrochemical markets magnifies the amplitude and reach from such events...

  
  
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  Tags:HPInsight, top headlines, 90th anniversary

• Daily editions of the OTC 2012 official newspaper

  
  

  Posted by: HP Editorial Staff

  Thursday May 03, 2012

  
  

  HOUSTON -- To see the official newspaper for each day of the 2012 Offshore Technology Conference, please click below.

  Day 1 (April 30)
  Day 2 (May 1)
  Day 3 (May 2)
  Day 4 (May 3)

  Each daily edition was published by World Oil and Hydrocarbon Processing. If you wish to advertise in a future show daily or desire further information, contact the editor via email at Billy.Thinnes@GulfPub.com.

  
  
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  Tags:OTC, Offshore Technology Conference, #otchouston

• PODCAST: Ivanhoe Energy executive Cabrera shares global refining outlook

  
  

  Posted by: Stephany Romanow

  Friday April 27, 2012

  
  

  Each year, the advisory board members of the International Refining and Petrochemical Conference (IRPC) provide invaluable professional input and guidance in the formation of the conference's top-notch technical program. Recently, Stephany Romanow, editor of Hydrocarbon Processing, spoke with fellow IRPC board member Carlos Cabrera to get his thoughts on the state of the global refining industry, both now and in the future.

  In two separate interviews, the industry veterans covered a variety of topics, including potential growth opportunities in the hydrocarbon processing industry (HPI), Ivanhoe Energy's heavy oil conversion technology, refiners' options for processing heavier, high-sulfur oil, and today's economics of operating in the industry.

  Download/listen to podcast No. 1 here.

  Download/listen to podcast No. 2 here.Cabrera is the executive chairman of Ivanhoe Energy, a publicly traded oil and gas company. Prior to his appointment, he served as the founding president and CEO of the National Institute of...

  
  
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  Tags:IRPC 2012, conference, Carlos Cabrera, Ivanhoe Energy

• EARNINGS PREVIEW: US oil majors benefit from high prices in Q1

  
  

  Posted by: HP News Services

  Monday April 23, 2012

  
  

  By ISABEL ORDONEZ

  TAKING THE PULSE: First-quarter profits of US integrated oil companies are expected to rise year-over-year mainly thanks to higher Brent crude prices, which traded at more than $118/bbl during the quarter, or about 12% higher than the same period a year earlier.

  ExxonMobil, however, is likely to be the exception, as the world's largest publicly traded oil company is expected to report lower profits due to its large exposure to low natural gas prices, which during the first quarter tumbled 40.5% to $2.50 per million BTUs compared with a year earlier.

  US oil majors' quarterly results are expected to benefit also from a rebound in refining and marketing profits, which are expected to see a boost from a year earlier thanks to improved refining margins.

  "Two factors are going to boost oil majors' earnings: higher crude prices and improved refining margins," says Alan Good,...

  
  
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  Tags:earnings preview, oil, refining

• INDUSTRY MOVES: People in the news

  
  

  Posted by: Ben DuBose

  Wednesday April 18, 2012

  
  

  This is the latest entry in a regular series hosted on the HPInformer blog. With People in the news, we keep tabs on the movers and shakers in the HPI. If you know someone that just got promoted or are trying to get word out about new leadership at your company, let us know! Send an email with all the pertinent details to ben.dubose@hydrocarbonprocessing.com.
  
  
  ConocoPhillips has named seven members to the board of directors for Phillips 66, its independent downstream spinoff company.

  The board will be headed by Greg Garland, the Phillips 66 CEO, as chairman.

  Other members include J. Brian Ferguson, the former CEO of Eastman Chemical; William Loomis, an independent financial advisor; John Lowe, assistant to the CEO of ConocoPhillips since 2008; Harold McGraw III, CEO of The McGraw-Hill Companies; Glenn Tilton, chairman of the Midwest for J.P. Morgan Chase & Co.; and Victoria Tschinkel,...

  
  
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  Tags:people in the news

• IRPC 2012 supports decision-making for global refining, petrochemical markets

  
  

  Posted by: HP Editorial Staff

  Tuesday April 17, 2012

  
  

  The international refining and petrochemical industry is a vital part of the global economy. Energy, in all forms, drives economic growth. Secure and sustainable supplies remain a vital concern for all nations—developed and developing. Efficient energy usage is another challenge confronting hydrocarbon processing industry (HPI) companies.

  Transportation fuels and petrochemical products paved the way for many nations to raise the quality of life for its citizens. Developing nations, likewise, are seeking the same paths as used by Western European and North American nations to increase domestic wealth.
  
  However, refining and petrochemical markets are very cyclic; they are vulnerable to outside forces. Social, political, and natural events continue to change the landscape in which international HPI companies must conduct business. Too often, these influencing events are truly beyond the control of refining and petrochemical organizations.

  Leaders of the international HPI have the task of developing and executing strategies...

  
  
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  Tags:IRPC 2012, conference, Italy

• EARNINGS PREVIEW: EU, China raise questions for chemical companies

  
  

  Posted by: HP News Services

  Monday April 16, 2012

  
  

  By KRISTIN JONES

  TAKING THE PULSE: As the European recession ground on in the first few months of the year, US chemical companies felt the pain. Some, like Dow Chemical, detailed their exposure to the slump in Europe's industrial demand. Dow said last month it would close plants and lay off 900 workers.

  At the same time, emerging markets, the reliable heroes of so many companies' rebound from the recession, posed a different question: How slow can China's slowdown go? Macro observers will read the tea leaves in these reports.

  On the bright side, the revving of the US auto industry and an uptick in American manufacturing means more demand for chemicals, and customers may finally be restocking, after scraping the dregs of their inventories.

  
  COMPANIES TO WATCH:

  DuPont - reports April 19

  Wall Street Expectations: Analysts polled by Thomson Reuters predict a profit of $1.54 a share on revenue of...

  
  
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  Tags:earnings preview, chemicals

• HPInsight: The global HPI's top April headlines from 1922 through 2012

  
  

  Posted by: HP Editorial Staff

  Tuesday April 03, 2012

  
  (Editor's note: The HPInsight article posted below is included in this month's Hydrocarbon Processing print edition. To read the top April 2012 headlines, click here.)
  
  

  Remaining profitable continues to be a critical issue for hydrocarbon processing facilities. Balancing new technology with government mandates is a thorny problem. Environmental issues add more cost to refined products. Changes in transportation fuels continue as vehicle manufacturers update engine designs. R&D and innovative inventors continue to find solutions to old and new challenges of the hydrocarbon processing industry (HPI).

  Headlines from Hydrocarbon Processing, April 2002: Clean fuels: Estimated $7 billion in US refining capital spending. In 1999, The Environmental Protection Agency (EPA) released Tier II sulfur mandates, as part of the Clean Fuels Program. These rules require lowering sulfur concentrations in gasoline to 30 ppm by 2006. Compliance with the low-sulfur guidelines for gasoline and diesel is deemed to be complicated. Most refiners...

  
  
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  Tags:HPInsight, top headlines, 90th anniversary

• ANALYSIS: Refiners' profits on gasoline could rise in coming months

  
  

  Posted by: HP News Services

  Friday March 30, 2012

  
  

  By JENNY GROSS

  LONDON -- Refiners that produce gasoline can make more money per barrel now than they could at any point in the last two years, and analysts said this week that the product could become even more profitable in the coming months as the US enters its peak summer driving season.

  A string of refinery closures on the US East Coast has left a gap in the market and this could provide support for prices to go higher, analysts said.

  The current price spike was partly due to the switching to summer grades from winter grades by refineries, Olivier Jakob, managing director of Swiss consultancy Petromatrix, said.

  "Right now, the overall stock situation in the US doesn't seem catastrophic, but when the Sunoco refinery goes down, it will be difficult to meet demand," Jakob said.

  Sunoco will shut its Philadelphia refinery, which produces 335,000 bpd, in July if it...

  
  
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  Tags:refiners, gasoline, crude oil, refinery, oil prices

• POLL FINDINGS: Iran crude bans likely to make major market impact

  
  

  Posted by: Ben DuBose

  Tuesday March 20, 2012

  
  

  Proposed bans on Iranian crude are likely to have significant impacts on global oil markets if followed through, according to a new poll of Hydrocarbon Processing readers.

  With hundreds of votes cast, 61% say Iran supply is needed to fill requirements. Just 39% believe the oil can be readily replaced from other regions.

  The US is set to ban all oil trades with Iran's central bank, beginning in June. The European Union is then set to embargo all Iranian oil from July 1.

  Many major countries, including Japan and Spain, have already begun reducing their Iranian imports and switching to Saudi crude.

  The market tension has contributed to rising crude oil prices in recent weeks.

  Peter Oosterveer, president of the energy and chemicals (E&C) segment at Fluor, recently returned from a trip to the Middle East.

  Despite increasing Iran turmoil and sanctions, project activity in the region...

  
  
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  Tags:poll findings, Iran, Saudi Arabia, crude oil, US, EU, sanctions

• ANALYSIS: Soaring US imports of Saudi oil set to continue

  
  

  Posted by: HP News Services

  Monday March 19, 2012

  
  

  By SARAH KENT, SELINA WILLIAMS and NEENA RAI

  LONDON -- US imports of Saudi crude have soared this year, and look set to continue to climb, shipbrokers and analysts told Dow Jones, surprising many market watchers.

  Although the increase in Saudi oil exports has been well reported in recent months, many investors expected additional volumes to travel to Europe and Asia, areas that are most likely to be affected by tightening sanctions against Iran.

  According to the International Energy Agency, Saudi Arabia's oil production rose to 10 million bpd in February - its highest in 30 years - with most of this additional supply heading to Europe and Africa.

  But the US has also been taking extra barrels, data show.

  According to the Energy Information Administration, the US increased its imports of oil from Saudi Arabia some 38% in the first 10 weeks of 2012, and shipping fixtures show this trend...

  
  
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  Tags:Saudi Arabia, crude oil, US, shipping

• Day 3 of the AFPM 2012 Annual Meeting official newspaper

  
  

  Posted by: HP Editorial Staff

  Wednesday March 14, 2012

  
  

  To see Day 3 of the official newspaper of the AFPM 2012 Annual Meeting, please click here.

  Published by Hydrocarbon Processing as three daily editions, March 11/12, 13 and as an electronic edition on March 14. If you wish to advertise in a future version of this newspaper, or to submit a press release for website consideration, please contact the editor via email at Billy.Thinnes@GulfPub.com.

  
  
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  Tags:AFPM, annual meeting, show daily

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