Competitive economics of United States and foreign refining [electronic resource]
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| Online Access: |
Online Access |
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| Corporate Author: | |
| Format: | Government Document Electronic eBook |
| Language: | English |
| Published: |
Normal, Ala. : Oak Ridge, Tenn. :
Alabama A & M University ; distributed by the Office of Scientific and Technical Information, U.S. Department of Energy,
1979.
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| Subjects: |
| Abstract: | The existing Caribbean export refineries are at a competitive advantage relative to all US Gulf Coast refineries except the very large, high conversion facilities. The advantage ranges from a minimum of $0.45 per barrel to a maximum of $2.14 per barrel (1978 US dollars) in 1980 with US crude oil prices at world levels. The existing European export refineries are also at a competitive advantage relative to the hydroskimming and low conversion US Gulf Coast refineries. Higher crude oil and product transportation costs reduce the European export refinery's competitive advantage compared to its Caribbean counterpart. The Caribbean and Roggerdam refiner's competitive position would be significantly enhanced with the addition of conversion facilities to increase gasoline and distillate yields. The advantage in 1985 would increase to a maximum of $2.54 per barrel (1978 dollars). Higher crude oil and product transportation costs due to natural port limitations and the Jones Act are key factors determining the US Gulf Coast refiner's competitive position. These locational disadvantages in addition to US emission standards account for $1.42 and $0.94 barrel of the competitive advantage of the Caribbean and European export refineries, respectively. New US refineries are at an even greater disadvantage relative to foreign competition. Caribbean and Mexican locations are the most attractive for a new refinery. Mexico also has potentially cheap natural gas for refinery fuel. These factors give a new Mexican or Caribbean refinery about a $2.00 to $3.00 per barrel advantage relative to a US East or Gulf Coast location. |
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| Item Description: | Published through SciTech Connect. 12/01/1979. "doe/pe/70076-t1" |
| Physical Description: | Pages: 137 : digital, PDF file. |