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Posted on 05/08/2026 3:20:25 PM PDT by johnnygeneric
Delta Air Lines expects a $300 million boost from its Pennsylvania oil refinery this quarter as jet fuel prices surge globally, giving the carrier a significant advantage over competitors scrambling to manage soaring costs.
(Excerpt) Read more at cbsnews.com ...
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I’m surprised none of the airlines did this earlier, even coming together to buy or build a single refinery that was dedicated to just creating airline fuel.
Do they also own their own oil wells?
WHEN RAW OIL IS REFINED-—THERE AREA A NUMBER OF PRODUCTS THAT ARE “CRACKED” OFF THE ORIGINAL SUBSTANCE.
CANNOT PRODUCE JUST AVIATION FUEL, BUT CERTAINLY CAN FIND A MARKET FOR THE MANY OTHER PRODUCTS...CREATING A SEPARATE REVENUE STREAM........
BRILLIANT IDEA.
Some Distilleries have secondary ops to increase or decrease the # of Carbons in the chains of interest.
Delta was smart
It would be better if they own their wells too.
Bombshell! A big Corp does something smart for a change.
They could just protect themselves with futures contracts instead of going through all of that. That’s what they’re for.
The article, which is written by a dumbass, doesn’t say that the refinery is here in Trainer, PA. I go by it ocasionally and knew it was not owned by the large oil companies. Just tonight at dinner with my friend of 65 years, we talked about refineries as my dad worked at Atlantic, then Richfield. He thot they were all gone and i said no this one was still here. as well as the one in NJ and Chesapeake city. I’ll have to let him know it is owned by Delta.
The parent Delta owns an airline and refinery and a few other things. The refinery is making money and the airline is hurting. The refinery sells it fuel for market price to all comers. Giving Delta Airlines a cheap price just keeps the refinery from making as much money as it could while the airline makes more money than it should.
Owning a refinery is simply a hedge on fuel prices. It could have been done with financial instruments but that would have hurt profits. The refinery has been a mediocre investment as are most refineries.
They could just protect themselves with futures contracts instead of going through all of that. That’s what they’re for.>>> I said that the other day but was surprised that none do. I remember southwest i think made a killing years ago with their futures contracts.
You are correct in that you can’t isolate specific products to the exclusion of the other by-products. However, if you have a refinery that is dedicated to airline fuel, then I think you can customize the equipment towards that purpose and minimize the other by-products.
In my province, we have a plant that produces plastic pellets from all the waste fuels that the refineries otherwise burn off.
The refinery has been a mediocre investment as are most refineries.>> It’s in my back yard and that is true and the industry is over regulated. They can’t do incremental upgrades, all or nothing. And it is a tidy property to boot. You would think it was a garden plot when you go by.
Environmental would sue the hell out of whoever tries/tried to get a refinery built, from what I understand that’s the reason why we haven’t built a new refinery here in the past 40 years.
I remain unable to secure a contract where I can buy now my lifetime supply of gasoline, NG, and diesel.
YMMV
Futures contracts for those markets are available with monthly expirations for several years out. You just need to open and fund an account.
Jet engines dont run on paper fuel, they need the real thing. There are certain sectors that need the physical in hand, not a promise to pay.
Silver comes to mind....AI, Solar, and Electronics need real Silver to operate, simply paper doesn’t work.
You don’t understand and I don’t have time to teach you.
“”””The refinery has been a mediocre investment as are most refineries.>> It’s in my back yard and that is true and the industry is over regulated. They can’t do incremental upgrades, all or nothing. And it is a tidy property to boot. You would think it was a garden plot when you go by.””””
I agree. If you read the oil company annual reports you will see that the BIG money is being made in the production of crude oil and natural gas.
The refining and marketing side of the oil company business is only making a small profit and many times refining and marketing is a loss.
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