Pennsylvania

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Philadelphia’s Sunoco Refinery Will Process Shale Oil With the Help of Natural Gas

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A Sunoco employee delivers gasoline.

The Sunoco refinery in southwest Philadelphia, scheduled to shut down in August, will now be used to refine domestic oil from North Dakota’s Bakken Shale. The plan also calls for the use of natural gas to power a hydrocracker, which is used to turn crude oil into usable products such as gasoline.

The plan was announced by a host of city, state and federal officials, including Philadelphia Mayor Michael Nutter, Congressman Bob Brady and Governor Tom Corbett. The deal between Sunoco and the private equity firm The Carlyle Group will form a joint venture called Philadelphia Energy Solutions.

The refinery currently processes 330,000 barrels of oil a day. Federal energy officials worried that the planned shut down would create a shortage of gasoline in the East Coast region. The Carlyle Group says the deal will save 850 jobs and create 100 to 200 permanent positions, as well as construction jobs.

Carlyle Managing Director Rodney Cohen says the company will also be looking at projects related to processing Marcellus Shale gas.

“In addition, the refinery’s exceptional location and infrastructure will enable the joint venture to create new business opportunities related to Marcellus Shale natural gas fields,” said Cohen.

“We also look forward to continuing to work with all of the relevant stakeholders – government officials, the community, environmental officials and organized labor – as we work to stabilize, strengthen and expand the refinery.”

The joint venture will also include an upgraded cracker, and a high speed rail line to transfer the oil from North Dakota.

Sunoco has already shut down a refinery in Marcus Hook, Delaware County. A recent report issued by IHS Global encouraged officials to convert that plant into a Marcellus Shale gas processing hub.

Comments

  • Protecting Our Waters

    Sharply rising air pollution and resulting health issues, including asthma which is already a huge issue in the Philadelphia area, would result if this project goes through. Nutter should be weighing in on the side of a Marcellus moratorium to protect our health, and fighting for green jobs, in keeping with his values. “The Harmed, the Sickened, the Dead and the Disappeared” documents over 200 cases of contamination, most with health impacts, from shale gas drilling. And air impacts alone from gas processing in PA are causing and will cause well-documented harm: http://www.pennlive.com/editorials/index.ssf/2012/06/pennsylvanias_reindustrializat.html 

    Shale oil drilling in the Bakken shale is resulting in a boom in serious health problems there: http://www.onearth.org/article/north-dakota-boom-health-problems-fracking

    The Arctic sea ice has just melted faster than it ever has in human history; it is hundreds of thousands of miles less than it was in 2007. We cannot and must not “grow” our economy at the expense of climate. We must invest in green jobs on a World War II-scale instead. We need an ETA: an Energy Transition in America. Not escalating extreme fossil fuel extraction.
    If NPR is going to report accurately on this topic, perhaps it should stop accepting the big bucks from ANGA, which literally is paying NPR to announce things that are not true. ANGA’s ad on NPR on June 27th said the gas industry is “supporting nearly 3 million jobs across the country.” Hello? Allowing ads like that to air is irresponsible, especially without any accurate reporting to the contrary to tear those numbers apart using real data (for example, industry reports call every new hire a “job” when in fact the same person might have been hired many different times for short-term jobs; and ANGA makes up multipliers which enable them to literally fabricate numbers for “related industries.” Detailed debunking here: http://protectingourwaters.wordpress.com/2011/06/22/numbers-game-marcellus-shale-industry-created-less-than-10000-jobs-in-pa/

     

    • Shawn_Shipman

      Mr. Protecting Our Waters,

      I hope you walk everywhere you go, live in a tent, and collect rain water to drink since you have no dependance on fossil fuel energy.  I agree that there should be regulation on the Oil and Gas Industry to protect our waters, but you must get a grip!  This is all done safely.  And there are constant advancements in technology to continue to make this a safe and viable option.  Also if Oil and Gas drilling and completions were shut down, the economic downturn of 2008-2009 would look like the best market we ever had.  The unemployment rate would go up to 25-30% within months. Due to all of the other related industries shutting down as well.

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