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Author Topic: Delta Air Lines buys ConocoPhillips Refinery in PA Back to Topics
PD

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Message Posted: May 1, 2012 11:17:59 AM

Delta Air Lines is buying the idled ConocoPhillips refinery in Trainer, PA and is expected to shift the majority of its production to jet fuel. Pennsylvania's state government is contributing $30 million to subsidize the deal.

It's the second major move involving a Pennsylvania refinery in as many days. Yesterday we shared the news that Energy Transfer Partners in Dallas acquired Sunoco and its (335,000 bpd) Philadelphia refinery.

The news that these refineries will remain in operation may be good news for the steelworkers who work there, and certainly keeping the Sunoco refinery in Philadelphia operating should help meet regional demand for gasoline. But whether Delta's purchase of this refinery is a positive note for...

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Sneakers55
Champion Author Houston

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Message Posted: Jul 28, 2012 11:00:44 AM

On Jul 24, 2012 3:03:17 PM, txrojo2005 wrote:

>Delta is trying to hedge its oil prices. It seems like it should work.
>But does Delta really know how to refine jet fuel?

There are a lot of unemployed ConocoPhillips refinery employees in PA who would likely go to work for the new Delta Air Lines refinery in a heartbeat. That is if Phillips 66 isn't running it in the first place. Their gasoline output will go to Phillips 66 as that company has taken over the refining and marketing operations of ConocoPhillips.
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txrojo2005
Champion Author Austin

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Message Posted: Jul 24, 2012 4:03:17 PM

Delta is trying to hedge its oil prices. It seems like it should work. But does Delta really know how to refine jet fuel?

[Edited by: txrojo2005 at 7/24/2012 4:05:06 PM EST]
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carinthuist
Champion Author San Francisco

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Message Posted: Jul 24, 2012 2:44:40 PM

very good
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mamabeck
Champion Author Florida

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Message Posted: Jul 23, 2012 6:29:17 PM

I'm sure that their intent is to lower their costs, but that would take a long time and continuing higher airfares until it is seen. Could be interesting and may start a trend for the other airlines to try!
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stonecold5005
All-Star Author Waco

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Message Posted: Jul 23, 2012 7:52:32 AM

ok
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Eugene_C
Champion Author Columbus

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Message Posted: Jun 8, 2012 12:31:48 PM

This refinery runs on Brent. Not sure this was wise investment.
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Donatelo
Champion Author Dayton

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Message Posted: May 25, 2012 11:13:34 AM

ok
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n3tbc
Veteran Author Wilmington

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Message Posted: May 25, 2012 9:15:47 AM

I like Delta and hope this helps cut the prices some in order to make them more popular.
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sabob
Champion Author Pennsylvania

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Message Posted: May 5, 2012 6:06:15 PM

Good thing someone bought it!!
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honda0105
Champion Author Tallahassee

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Message Posted: May 5, 2012 5:08:53 PM

we'll see how it pays off for Delta. Hopefully it will...
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tomok
Champion Author Portland

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Message Posted: May 4, 2012 3:08:08 AM

If there is a refinery available in Trainer, PA and a chance to control your jet fuel costs, do so! Make jet fuel for your business, employ people that may be out of work and the state gets their tax dollars too. Good move for Delta!
Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. Consider using other forms of less expensive transportation to lower your cost, if possible!
The price of fuel at the pump is too high!
12/22/2012!
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Donatelo
Champion Author Dayton

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Message Posted: May 3, 2012 9:40:20 AM

ok
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albert2008
Champion Author Winnipeg

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Message Posted: May 3, 2012 8:40:51 AM

good for them
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N5EXY
Champion Author Austin

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Message Posted: May 3, 2012 1:03:34 AM

And the planes taxi up to the cat crackers at the refinery?"
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StillWillIV
Sophomore Author South Bend

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Message Posted: May 2, 2012 2:33:37 PM

Good luck!
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Alfied
Champion Author Riverside

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Message Posted: May 2, 2012 11:00:40 AM

Good luck, Delta.
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rbrowdersr
Champion Author Detroit

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Message Posted: May 2, 2012 10:52:47 AM

Hope it's successful.
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Tutootin
Champion Author Toronto

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Message Posted: May 2, 2012 10:51:13 AM

Yesterday's news...again!!!!
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LeftLane1
Champion Author Georgia

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Message Posted: May 2, 2012 10:50:11 AM

Well, this is interesting.

Fuel is the TOP COST for Airlines, is Delta not the largest carrier in the world, so it would seem to be a BOLD Move to secure and control their own Fuel source, they could lower costs potentially and even profit from sales to other carriers....

This has potential. I would say it is really Bold, it will depend on how they run it, bring in the right talent, set up a subsidiary...
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Don20
Champion Author Oklahoma City

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Message Posted: May 2, 2012 10:46:50 AM

Delta Air Lines is buying the idled ConocoPhillips refinery in Trainer, PA and is expected to shift the majority of its production to jet fuel. Pennsylvania's state government is contributing $30 million to subsidize the deal.

Good deal for Delta, since they own the refinery they can use what they need and then sell the rest to help pay for the refinery..
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imcheep
Champion Author New Mexico

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Message Posted: May 2, 2012 10:40:15 AM

We will see how this works out?
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LongPlay
Champion Author Albuquerque

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Message Posted: May 2, 2012 10:38:51 AM

This should help Delta and provide more gas for the northeast, but the refinery will need cheap oil to really help anyone.
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Blazer197
Champion Author New Haven

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Message Posted: May 2, 2012 10:38:47 AM

WAH WAH WEE WAH
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OilOnTheCheap
Champion Author Ventura

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Message Posted: May 2, 2012 10:38:07 AM

Bad move for Delta as this venture is too far from their core competencies to make a marginal profitable refinery at least break even.

Good move by the state to give 30 Million over five years as they will make much more than that by having the refinery stay open.
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bikerchicklette
Champion Author Washington

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Message Posted: May 2, 2012 10:38:03 AM

interesting
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mysub
Champion Author Las Vegas

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Message Posted: May 2, 2012 10:36:27 AM

Jamer, not only that but the consumer will probably foot the bill for the purchase.
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olebufnav
Champion Author Omaha

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Message Posted: May 2, 2012 10:35:01 AM

Maybe I could drill in my back yard and set up a still to process the crude ;-)
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spheremaker1
Champion Author Arizona

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Message Posted: May 2, 2012 10:34:40 AM

i believe they will get a lesson in economics of running a refinery.. there is a reason it was sold.
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emernal
Champion Author St. Louis

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Message Posted: May 2, 2012 10:34:07 AM

This is good for Delta as it reduces the ability of oil companies to jerk them around. Wish I could figure out a way to do that.
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acvw74
Champion Author Missouri

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Message Posted: May 2, 2012 10:33:34 AM

ok
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Jamer
Champion Author Las Vegas

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Message Posted: May 2, 2012 10:32:45 AM

I'm quite sure NO savings will be passed on to the consumer.
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Bubba44612
Champion Author Ohio

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Message Posted: May 2, 2012 10:32:34 AM

Smart move by Delta.
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40mpgsaturn
Champion Author Wisconsin

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Message Posted: May 2, 2012 10:32:20 AM

Ticket prices will still be high & if they refine less gas so will gas prices!!
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s6sputnik
Champion Author Austin

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Message Posted: May 2, 2012 10:31:56 AM

Great news!
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swede
Champion Author Cleveland

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Message Posted: May 2, 2012 10:31:20 AM

As long as it saves fuel costs.
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Topless2012
Champion Author Twin Cities

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Message Posted: May 2, 2012 10:29:44 AM

Yet another government bailout in the name of saving jobs.
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arnerator
Champion Author Seattle

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Message Posted: May 2, 2012 10:29:04 AM

So they will cut ticket prices.... right ?? WRONG !!!!
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techque
Champion Author St. Louis

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Message Posted: May 2, 2012 10:27:53 AM

decades ago companies that tried this sort of vertical integration got slapped with federal monopoly lawsuits. Is this different?
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Sam195
Champion Author San Bernardino

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Message Posted: May 2, 2012 10:22:58 AM

This could be the start of a new trend.
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JXQW
Champion Author Kansas City

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Message Posted: May 2, 2012 10:22:16 AM

that may save some of the money ...
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colaguy
Champion Author Columbia

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Message Posted: May 2, 2012 10:22:01 AM

good for them
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raccoon2011
Champion Author Massachusetts

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Message Posted: May 2, 2012 10:21:13 AM

they are takening away east coast refineries
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CTarp
Champion Author Texas

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Message Posted: May 2, 2012 10:21:03 AM

Interesting acquisition
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tobasco
Champion Author Los Angeles

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Message Posted: May 2, 2012 10:20:04 AM

Monday's news.
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mikesr100
Champion Author Sacramento

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Message Posted: May 2, 2012 10:19:32 AM

I want jet fuel for my Jeep!
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95Vette
Champion Author Missouri

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Message Posted: May 2, 2012 10:19:14 AM

So will they cut out the bag fees since they have cut out the middleman for fuel?
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GManCo
Champion Author Colorado Springs

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Message Posted: May 2, 2012 10:18:33 AM

They can then get their JP4 fuel at cost. But, by producing more JP4 they will have to cut down on the amount of gas they produce and gas prices will go up.
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straz
Champion Author Pennsylvania

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Message Posted: May 2, 2012 10:18:06 AM

Maybe they will have inflight refueling...just a joke!
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preacherboyFL
Veteran Author Orlando

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Message Posted: May 2, 2012 10:17:35 AM

Revelation 21
1 Then I saw “a new heaven and a new earth,”for the first heaven and the first earth had passed away, and there was no longer any sea. 2 I saw the Holy City, the new Jerusalem, coming down out of heaven from God, prepared as a bride beautifully dressed for her husband. 3 And I heard a loud voice from the throne saying, “Look! God’s dwelling place is now among the people, and he will dwell with them. They will be his people, and God himself will be with them and be their God. 4 ‘He will wipe every tear from their eyes. There will be no more death' or mourning or crying or pain, for the old order of things has passed away.”

5 He who was seated on the throne said, “I am making everything new!” Then he said, “Write this down, for these words are trustworthy and true.”
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Ticobird
Champion Author Huntsville

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Message Posted: May 2, 2012 10:17:29 AM

I hope this works out for Delta and the Pennsylvania taxpayers. I wouldn't be surprised if the number crunchers have taken a look at the plan and calculated that it will have at least a 90% chance of success.
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