Isn't the demand greater in the NE corridor than in the gulf states, given the cold winters and dense population?
The demand in the Northeast has fallen significantly.
While the gulf coast hasn't seen that amount of decline.
Isn't the demand greater in the NE corridor than in the gulf states, given the cold winters and dense population?
It does not make sense that the PA refineries are losing money, while the gulf coast can sustain them.
I would say many business are more economically in the Gulf Coast versus the Northeast. Given more of the available feedstock for those business are located here, it makes even more sense. As an additional plus, it is cheaper to operate a refinery outside of freezing temperatures.
Isn't the demand greater in the NE corridor than in the gulf states, given the cold winters and dense population?
The demand in the Northeast has fallen significantly.
While the gulf coast hasn't seen that amount of decline.
It does not make sense that the PA refineries are losing money, while the gulf coast can sustain them.”
Closing down of small or obsolete refineries is a trend that has been consistent since the 1970’s. I don't know the specifics on these exact refineries but generally what causes the breaking point is an economy of scale that favors larger refineries for lowest operation cost and greatest profitability that allows sufficient capital investment for modernization.