Sept. 24–A half dozen refineries in West Texas and New Mexico are reaping the rewards of proximity to cheap oil as pipeline constraints discount crude oil coming out of the region.
The six refineries, with 686,000 barrels a day of refining capacity, have direct access to oil out of the Permian Basin, where oil has been selling at a at a nearly $19 a barrel discount compared to Houston.
The refineries, located in West Texas, the Panhandle and New Mexico, are making margins above $15 a barrel or $9 million a day when processing West Texas Intermediate, West Texas Sour, a heavier crude oil that is also produced in the Permian, or a mix of the two, according to a report by Morningstar, an independent investment research firm.
The refineries include two owned by San Antonio-basedAndeavor, which is in the process of being acquired by Marathon, and one each run by Valero Energy Corp., also of San Antonio, HollyFrontier of Dallas and Delek U.S., and a joint venture by Philips 66 of Houston and the Canadian company Cenovus Energy.
(c)2018 the San Antonio Express-News
Visit the San Antonio Express-News at www.mysanantonio.com
Distributed by Tribune Content Agency, LLC.