Delta interested in buying an oil refinery?

[outerlimits]

I always wondered what John Ross Ewing (JR Ewing's son) did after he grew up at South Fork, and it now appears he might be flying Orange and Blue 737-300s over Western Texas.


Godspeed!


The OYSter

I hate to Be the one that tells you this, but that was not real,it was just a TV show.

Monday I have more news to tell you about the Easter bunny,but I will be kind and wait.

 

[knowlimits]

I hate to Be the one that tells you this, but that was not real,it was just a TV show.

Monday I have more news to tell you about the Easter bunny,but I will be kind and wait.

Even though outerlimits is an illiterate tool that was funny.

 

[redflyer65]

Yes. Well played sir.

 

[johnsonrod]

Delta hates Obama's energy policy - bidding on refinery...

Hey Naysayers,

Looks like OYS was correct - there is an article mentioning Delta's interest in potentially acquiring the refinery. The number one expense at airlines is now fuel expense - right? At least Delta is starting to think outside the box regarding how to manage the most expensive cost item (beyond management bonuses)...

Read below:



http://mobile.philly.com/business/?wss=/philly/business&id=145858465&viewAll=y#more

By Linda Loyd

INQUIRER STAFF WRITER

Sunoco Inc.'s oil refinery in Philadelphia has at least four potential buyers, and ConocoPhillips has one, and possibly two, offers for its idled Trainer refinery, an oil analyst with an independent trade publication said Monday.
"The entire dynamic of the U.S. East Coast markets may be about to change," said Tom Kloza, chief oil analyst with the Oil Price Information Service in a note to subscribers. Kloza said bids for the Sunoco plant were due Monday and "multiple sources" in refinery mergers and acquisitions have told him there were "at least four tenders" for Sunoco.

One of them is Radnor-based Preferred Energy L.L.C., which has put in a "substantial bid," and would continue to operate the 335,000 barrel-a-day complex as a refinery, said Preferred president and CEO Michael O'Neill.
"All the principals are from Philadelphia. We would love to see the place stay open. We have put together a great team of refinery operators, energy traders, logistics and oil industry and financial partners," O'Neill said.
Other possible bidders include United Refining Co., owned by John Catsimatidis, who put in an "initial bid although some sources believe that this company would only operate the refinery if they receive quite a few government and union concessions," Kloza said.

Also bidding was PBF Energy, which operates the former Valero refineries in Delaware City and Paulsboro, and the Wall Street private equity-based Apollo Global Management L.L.C., which "has been looking at U.S. and European based refineries for some time, and has looked to do deals with wraparound crude oil supply coming from investment house JP Morgan," Kloza said.

Sunoco spokesman Thomas Golembeski said, "We are still trying to sell Philadelphia refinery as an operating refinery. We are still talking to interested parties, but that's the extent of what I can say."

Separately, ConocoPhillips has one or two possible suitors. Kloza said that Delta Air Lines, or a company affiliated with Delta, may bid on the Trainer refinery "with intent to maximize jet fuel production for its operations in the Northeast United States. It is not known whether the airline has a partner to handle the extraordinary capital needs of operating a refinery, and securing crude and feedstock needs," Kloza wrote. "For an airline to buy a refinery, which is an incredibly capital-intensive business, would be unprecedented in this country."

Delta is the world's second largest airline after merging with Northwest, with a hub at New York's JFK airport and a big operation at New York LaGuardia airport.

"At least one other company, said to be a crude oil producer with access to Bakken crude is believed to have advanced interest in the Trainer refinery," Kloza said in the report. "Sources believe that any operators of Philadelphia or Trainer still have a lot of work ahead of them, including negotiations with unions as well as sweeteners from local, state, and federal groups that want to see both refineries remain part of the mix."

"I'm pretty confident that we've got some real good buying interest in Philly," he said. "I'm pretty confident that we are not going to see the Sun Philadelphia refinery close on July 1." Kloza said his information is less certain for ConocoPhillips "because I don't know what contingencies might be there for a potential operator.

"I don't hear anyone looking at the closed refinery at Marcus Hook, unfortunately," Kloza added.

Contact Linda Loyd at 215 854 2831 or [email protected].

 

[On Your Six]

I hate to Be the one that tells you this, but that was not real,it was just a TV show.

Monday I have more news to tell you about the Easter bunny,but I will be kind and wait.

No, it's real, in Redflyer's World. His family is in the oil business, and he KNOWS oil, and what airlines should do. It's connecting the dots. Hopefully he has GK's ear, and is telling him exactly what to do.


Godspeed!


The OYSter

 

[redflyer65]

OYS,

I talked to some insiders at Delta and they leaked the info and it's brillant!

Appearantly they have clauses in the Airline Services Agreements with their small jet operators forcing them to buy Jet A from Delta if they own a refinery. It seems like they found another way to extract more money out of those contracts. I say Bravo! There are so many Delta Connection planes flying around that it will be a complete windfall. Oh, and the refinery workers will all be outsourced as well, just as they done with other 'Delta' jobs.

I wish Delta all the best with their new operation. Next, you guys will be operating oil tankers to feed the refinery because you already have the jackets for it.

Full Steam Ahead OYS!

 

[On Your Six]

OYS,

I talked to some insiders at Delta and they leaked the info and it's brillant!

Appearantly they have clauses in the Airline Services Agreements with their small jet operators forcing them to buy Jet A from Delta if they own a refinery. It seems like they found another way to extract more money out of those contracts. I say Bravo! There are so many Delta Connection planes flying around that it will be a complete windfall. Oh, and the refinery workers will all be outsourced as well, just as they done with other 'Delta' jobs.

I wish Delta all the best with their new operation. Next, you guys will be operating oil tankers to feed the refinery because you already have the jackets for it.

Full Steam Ahead OYS!

Why then is the airline dumping regional feed? Wouldnt they keep more around if they planned to make more money off of them in the near future? That doesn't seem to be the case.


Will you guys be driving the 18 wheelers that deliver the fuel since you have the uniforms already for that? Honk that big semi trunk horn for us! Say hi to Billie Jo at the truckstop in Ft. Stockton.


Godspeed!


The OYSter

 

[Griswold]

OYS,

I talked to some insiders at Delta and they leaked the info and it's brillant!

Appearantly they have clauses in the Airline Services Agreements with their small jet operators forcing them to buy Jet A from Delta if they own a refinery. It seems like they found another way to extract more money out of those contracts. I say Bravo! There are so many Delta Connection planes flying around that it will be a complete windfall. Oh, and the refinery workers will all be outsourced as well, just as they done with other 'Delta' jobs.

I wish Delta all the best with their new operation. Next, you guys will be operating oil tankers to feed the refinery because you already have the jackets for it.

Full Steam Ahead OYS!

Yea we are going to start asking pilots to fly for 6 months then drive a fuel truck for six months.
What is all this ******************** against Delta from the SWA guys on this forum. If you take a step back and look at all the crap here and half the threads you sound like kids talking about how good your flag football team is. Get ready guys for the tackle league. International to Mexico with no first class and no fuel hedge anymore. Good airline, but look at a little history to see how it all plays out. Say you are 40 and have 25 years left. 10 years can change your outcome in retirement, pay and QOL. I don't wish any bad ******************** with ya'll but be on your toes as things could change. Advise is to step off your high horse and get your picture without the roses and mint julep in hand.

 

[outerlimits]

Yea we are going to start asking pilots to fly for 6 months then drive a fuel truck for six months.
What is all this ******************** against Delta from the SWA guys on this forum. If you take a step back and look at all the crap here and half the threads you sound like kids talking about how good your flag football team is. Get ready guys for the tackle league. International to Mexico with no first class and no fuel hedge anymore. Good airline, but look at a little history to see how it all plays out. Say you are 40 and have 25 years left. 10 years can change your outcome in retirement, pay and QOL. I don't wish any bad ******************** with ya'll but be on your toes as things could change. Advise is to step off your high horse and get your picture without the roses and mint julep in hand.

Funny, as an outsider looking in I was going to say I see it the other way around.

Then I read the second part of your post, and see that it is not just as I see it but it is fact.

 

[DieselDragRacer]

In my experience you can run Jet A in a diesel engine however expect problems with seals if running a traditional type injection pump. Not sure how a common rail system will deal with it but I will guess better than the old style pumps. Jet A has a less oil in it and is a key lubricant in the pumps. I have seen it done but the smart folks added Murphy's mystery oil to the jet A to give some lubrication properties for the seals and o rings. As for diesel in a jet engine it does not run well, but will run. Higher EGT's and smutted up compressor section. When I was in the Army saw it happen on a AH-1 which was mis fueled at the POL site. We had to change the engine and flush all fuel lines. I am sure if it was truly interchangeable it would be common practice.

Correct. Jet-A and kerosene don't have the lubricity that diesel has (causes injector/fuel pump issues) nor does it have the BTUs of diesel meaning ~20% less HP.

In order to safely run Kero/Jet-A long term in the <2008 non-EPA diesel motors, what we would do is add a quart of 2 stroke oil or Stanadyne to a ~30 gal tank.

I'm not sure how Kero/Jet-A would work in the 2008-current EPA motors considering all the sensors, DEF injection, exhaust regeneration etc.