• About
    • Which Energy Mix is this?
  • Climate News Network Archive
  • Contact
Celebrating our 1,000th edition. The climate news you need
No Result
View All Result
The Energy Mix
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
SUBSCRIBE
DONATE
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
SUBSCRIBE
DONATE
No Result
View All Result
The Energy Mix
No Result
View All Result
  FEATURED
BREAKING: U.S. Senate Passes Historic $369B Climate Package August 7, 2022
Researchers Point To ‘Dangerously Unexplored’ Risk of Global Climate Catastrophe August 2, 2022
Koch Network Pressures Manchin, Sinema as Advocates Praise ‘Game Changing’ Climate Deal August 2, 2022
Coastal GasLink Cost Skyrockets 70% to $11.2B August 2, 2022
Ottawa Releases Regulatory ‘Frame’ for Net-Zero Grid by 2035 August 2, 2022
Next
Prev

U.S. Will Never Build Another Oil Refinery, Chevron CEO Says

August 2, 2022
Reading time: 3 minutes
Full Story: Corporate Knights @corporateknight
Primary Author: Alex Robinson @alexmrobins

Chevron refinery, Richmond, CA, Scott Hess/flickr

Chevron refinery, Richmond, CA, Scott Hess/flickr

16
SHARES
 

The United States’ capacity to refine oil into fuel has shrunk significantly during the pandemic because of the closure of refineries. And it may never come back, says the CEO of the second-largest oil company in the U.S.

In a closed-door meeting between Chevron CEO Mike Wirth and U.S. Secretary of Energy Jennifer Granholm in late June, reported by Bloomberg, both agreed that the shortage in refining capacity will persist and probably get even worse, as the country saw at least five refineries close in 2021 alone. These included a Shell facility in Louisiana and others in California, North Dakota, Wyoming, and New Mexico, Corporate Knights writes. Analysts blame pandemic market conditions for the closures, as lockdowns slowed demand for oil, but also the energy transition, as some energy companies look to decarbonize their portfolios.

“My personal view is there will never be another new refinery built” on U.S. soil, said Wirth. “You’re looking at committing capital 10 years out, that will need decades to offer a return for shareholders, in a policy environment where governments around the world are saying, ‘We don’t want these products.’”

Even the so-called energy capital of the world, Houston, lost a refinery recently. LyondellBasell Industries announced in April it will shut down its refinery in Houston by the end of 2023 and leave the refining business altogether as part of a decarbonization strategy. The chemical company made the decision after unsuccessfully trying to sell the refinery, which will now become the latest in a rash of American refineries that have shut their doors over the last two years, Corporate Knights says.

“While this was a difficult decision, our exit of the refining business advances the company’s decarbonization goals, and the site’s prime location gives us more options for advancing our future strategic objectives, including circularity,” interim CEO Ken Lane, said in a statement.

Green transition advocates have been calling for the closure of fossil fuel infrastructure. But the majority of dirty assets being sold off are continuing to operate, only under different ownership.

A report published by the U.S. Environmental Defense Fund (EDF) in May found that many oil majors with net-zero commitments are selling off dirty assets to buyers that don’t have decarbonization commitments. Over the last five years, 155 such deals, worth US$86.4 billion, have moved fossil fuel assets away from net-zero-aligned companies.

“These transactions can make it look as though sellers have cut emissions, when in fact pollution is simply being shifted to companies with lower standards,” said EDF Energy Transition Director Andrew Baxter.

Some think there might also be life yet for LyondellBasell’s Houston facility, which refines 268,000 barrels of crude oil into transportation fuels and other products every day. John Auers, executive vice-president of Dallas-based Turner, Mason & Co., told Reuters the refinery could still sell and that he expects “there will definitely be people knocking on the door” to buy it and keep it open.

In the meantime, Corporate Knights says, chalk one up for decarbonization.

This post originally appeared on Corporate Knights. Republished with permission.



in Carbon Levels & Measurement, Ending Emissions, Finance & Investment, Oil & Gas, Petrochemicals & Plastics, United States

The latest climate news and analysis, direct to your inbox

Subscribe

Related Posts

openthegovernment.org
United States

BREAKING: U.S. Senate Passes Historic $369B Climate Package

August 8, 2022
340
jasonwoodhead23/flickr
Energy Politics

Fossils Dismiss Federal Emissions Cap as ‘Aggressive’, ‘Unrealistic’

August 8, 2022
137
Early stages of construction on the Flamanville 3 nuclear reactor in France
Nuclear

Failing French Nuclear Plants Drive Up Electricity Costs as Heat Waves Cut Production

August 8, 2022
354

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Trending Stories

Joseph Brent/Flickr

Green Hydrogen Will Cost Less than Fossil-Fuelled ‘Blue’, Shell CEO Admits

August 7, 2022
648
openthegovernment.org

BREAKING: U.S. Senate Passes Historic $369B Climate Package

August 8, 2022
340
Early stages of construction on the Flamanville 3 nuclear reactor in France

Failing French Nuclear Plants Drive Up Electricity Costs as Heat Waves Cut Production

August 8, 2022
354
David Wilson/wikimedia commons

U.S. State Treasurers Use Public Office to Thwart Climate Action, Investigation Finds

August 7, 2022
139
/MaxPixels

‘Substantial Damage’, No Injuries as Freight Train Hits Wind Turbine Blade

May 25, 2022
5.7k
Green Energy Futures/flickr

Solar Shingle Buying Guide Lays Out Options for Curious Homeowners

August 7, 2022
159

Recent Posts

jasonwoodhead23/flickr

Fossils Dismiss Federal Emissions Cap as ‘Aggressive’, ‘Unrealistic’

August 8, 2022
137
https://creativecommons.org/licenses/by-sa/2.0/

Canadians Share Stories of Fear, Vulnerability from 2021 Heat Dome

August 7, 2022
68
Brian Jeffery Beggerly/Wikimedia Commons

China’s Latest Renewables Plan Could Bridge Global 1.5°C Gap, Expert Says

August 9, 2022
161
U.S. Fish & Wildlife Service - Pacific Region/Wikimedia Commons

Australia Bans New Coal Mine to Protect Great Barrier Reef, Faces Call for Full Moratorium

August 7, 2022
78
The Come Up Show/flickr

Celebrities, Influencers See Backlash for Private Jet Emissions

August 7, 2022
63
alexxxis/Pixabay

Cambridge University to Rename BP Institute Following Student Backlash

August 7, 2022
48
Next Post
Dendodge/wikimedia commons

UN Declares Healthy Environment a Human Right

The Energy Mix

Copyright 2022 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.

Navigate Site

  • About
  • Contact
  • Privacy Policy and Copyright
  • Cookie Policy

Follow Us

No Result
View All Result
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities

Copyright 2022 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}