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Delta Air Lines buys ConocoPhillips Refinery in PA

GasBuddy Blog -- 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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Submitted May 01, 2012 By: PD

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Sneakers55 Champion Author Houston Posts:51,270 Points:2,141,225 Joined:Nov 2005	Message Posted: Jul 28, 2012 10:00:44 AM Ignore Sneakers55 Report Abuse 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.
txrojo2005 All-Star Author Austin Posts:762 Points:477,100 Joined:May 2011	Message Posted: Jul 24, 2012 3:03:17 PM Ignore txrojo2005 Report Abuse 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]
carinthuist Champion Author San Francisco Posts:2,233 Points:327,310 Joined:Mar 2012	Message Posted: Jul 24, 2012 1:44:40 PM Ignore carinthuist Report Abuse very good
mamabeck Champion Author Florida Posts:1,640 Points:360,085 Joined:Jan 2012	Message Posted: Jul 23, 2012 5:29:17 PM Ignore mamabeck Report Abuse 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!
stonecold5005 All-Star Author Waco Posts:817 Points:20,240 Joined:Mar 2012	Message Posted: Jul 23, 2012 6:52:32 AM Ignore stonecold5005 Report Abuse ok
Eugene_C Champion Author Columbus Posts:2,299 Points:155,995 Joined:Mar 2004	Message Posted: Jun 8, 2012 11:31:48 AM Ignore Eugene_C Report Abuse This refinery runs on Brent. Not sure this was wise investment.
Donatelo Champion Author Dayton Posts:1,118 Points:291,825 Joined:Apr 2011	Message Posted: May 25, 2012 10:13:34 AM Ignore Donatelo Report Abuse ok
n3tbc Veteran Author Wilmington Posts:355 Points:332,825 Joined:Sep 2011	Message Posted: May 25, 2012 8:15:47 AM Ignore n3tbc Report Abuse I like Delta and hope this helps cut the prices some in order to make them more popular.
sabob Champion Author Pennsylvania Posts:12,471 Points:1,125,345 Joined:Dec 2008	Message Posted: May 5, 2012 5:06:15 PM Ignore sabob Report Abuse Good thing someone bought it!!
honda0105 Champion Author Tallahassee Posts:18,590 Points:1,606,595 Joined:Nov 2008	Message Posted: May 5, 2012 4:08:53 PM Ignore honda0105 Report Abuse we'll see how it pays off for Delta. Hopefully it will...
tomok Champion Author Portland Posts:32,944 Points:2,343,560 Joined:Aug 2006	Message Posted: May 4, 2012 2:08:08 AM Ignore tomok Report Abuse 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!
Donatelo Champion Author Dayton Posts:1,118 Points:291,825 Joined:Apr 2011	Message Posted: May 3, 2012 8:40:20 AM Ignore Donatelo Report Abuse ok
albert2008 Champion Author Winnipeg Posts:7,337 Points:1,478,085 Joined:Sep 2008	Message Posted: May 3, 2012 7:40:51 AM Ignore albert2008 Report Abuse good for them
N5EXY Champion Author Austin Posts:5,482 Points:1,507,830 Joined:Jul 2004	Message Posted: May 3, 2012 12:03:34 AM Ignore N5EXY Report Abuse And the planes taxi up to the cat crackers at the refinery?"
StillWillIV Sophomore Author South Bend Posts:185 Points:361,995 Joined:Jun 2011	Message Posted: May 2, 2012 1:33:37 PM Ignore StillWillIV Report Abuse Good luck!
Alfied Champion Author Riverside Posts:7,925 Points:1,753,335 Joined:Jun 2001	Message Posted: May 2, 2012 10:00:40 AM Ignore Alfied Report Abuse Good luck, Delta.
rbrowdersr Champion Author Detroit Posts:5,711 Points:1,816,910 Joined:Aug 2006	Message Posted: May 2, 2012 9:52:47 AM Ignore rbrowdersr Report Abuse Hope it's successful.
Tutootin Champion Author Toronto Posts:10,106 Points:3,074,505 Joined:Jun 2004	Message Posted: May 2, 2012 9:51:13 AM Ignore Tutootin Report Abuse Yesterday's news...again!!!!
LeftLane1 Champion Author Georgia Posts:13,936 Points:1,861,540 Joined:May 2007	Message Posted: May 2, 2012 9:50:11 AM Ignore LeftLane1 Report Abuse 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...
Don20 Champion Author Oklahoma City Posts:9,657 Points:2,616,705 Joined:Mar 2005	Message Posted: May 2, 2012 9:46:50 AM Ignore Don20 Report Abuse 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..
imcheep Champion Author New Mexico Posts:2,477 Points:646,905 Joined:Apr 2005	Message Posted: May 2, 2012 9:40:15 AM Ignore imcheep Report Abuse We will see how this works out?
LongPlay Champion Author Albuquerque Posts:4,233 Points:1,237,350 Joined:May 2008	Message Posted: May 2, 2012 9:38:51 AM Ignore LongPlay Report Abuse This should help Delta and provide more gas for the northeast, but the refinery will need cheap oil to really help anyone.
Blazer197 Champion Author New Haven Posts:3,240 Points:615,150 Joined:Feb 2009	Message Posted: May 2, 2012 9:38:47 AM Ignore Blazer197 Report Abuse WAH WAH WEE WAH
OilOnTheCheap Champion Author Ventura Posts:2,085 Points:447,460 Joined:Jan 2012	Message Posted: May 2, 2012 9:38:07 AM Ignore OilOnTheCheap Report Abuse 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.
bikerchicklette Champion Author Washington Posts:5,889 Points:1,296,470 Joined:Sep 2005	Message Posted: May 2, 2012 9:38:03 AM Ignore bikerchicklette Report Abuse interesting
mysub Champion Author Las Vegas Posts:8,896 Points:2,327,540 Joined:Apr 2006	Message Posted: May 2, 2012 9:36:27 AM Ignore mysub Report Abuse Jamer, not only that but the consumer will probably foot the bill for the purchase.
olebufnav Champion Author Omaha Posts:3,960 Points:1,020,305 Joined:Nov 2008	Message Posted: May 2, 2012 9:35:01 AM Ignore olebufnav Report Abuse Maybe I could drill in my back yard and set up a still to process the crude ;-)
spheremaker1 Champion Author Arizona Posts:1,035 Points:1,130,200 Joined:May 2006	Message Posted: May 2, 2012 9:34:40 AM Ignore spheremaker1 Report Abuse i believe they will get a lesson in economics of running a refinery.. there is a reason it was sold.
emernal Champion Author St. Louis Posts:6,922 Points:2,010,070 Joined:Mar 2004	Message Posted: May 2, 2012 9:34:07 AM Ignore emernal Report Abuse 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.
acvw74 Champion Author Illinois Posts:2,105 Points:686,850 Joined:Apr 2011	Message Posted: May 2, 2012 9:33:34 AM Ignore acvw74 Report Abuse ok
Jamer Champion Author Las Vegas Posts:8,744 Points:1,633,335 Joined:Jul 2002	Message Posted: May 2, 2012 9:32:45 AM Ignore Jamer Report Abuse I'm quite sure NO savings will be passed on to the consumer.
Bubba44612 Champion Author Ohio Posts:7,381 Points:1,874,155 Joined:Aug 2005	Message Posted: May 2, 2012 9:32:34 AM Ignore Bubba44612 Report Abuse Smart move by Delta.
40mpgsaturn Champion Author Wisconsin Posts:2,480 Points:518,380 Joined:Jun 2011	Message Posted: May 2, 2012 9:32:20 AM Ignore 40mpgsaturn Report Abuse Ticket prices will still be high & if they refine less gas so will gas prices!!
s6sputnik Champion Author Austin Posts:6,214 Points:1,305,470 Joined:Jun 2007	Message Posted: May 2, 2012 9:31:56 AM Ignore s6sputnik Report Abuse Great news!
swede Champion Author Cleveland Posts:3,752 Points:1,673,075 Joined:Feb 2003	Message Posted: May 2, 2012 9:31:20 AM Ignore swede Report Abuse As long as it saves fuel costs.
Topless2012 Champion Author Twin Cities Posts:2,417 Points:478,140 Joined:Jan 2012	Message Posted: May 2, 2012 9:29:44 AM Ignore Topless2012 Report Abuse Yet another government bailout in the name of saving jobs.
arnerator Champion Author Seattle Posts:8,169 Points:1,615,215 Joined:Sep 2008	Message Posted: May 2, 2012 9:29:04 AM Ignore arnerator Report Abuse So they will cut ticket prices.... right ?? WRONG !!!!
techque Champion Author St. Louis Posts:8,640 Points:2,418,205 Joined:Apr 2005	Message Posted: May 2, 2012 9:27:53 AM Ignore techque Report Abuse decades ago companies that tried this sort of vertical integration got slapped with federal monopoly lawsuits. Is this different?
Sam195 Champion Author San Bernardino Posts:8,075 Points:1,572,150 Joined:Oct 2008	Message Posted: May 2, 2012 9:22:58 AM Ignore Sam195 Report Abuse This could be the start of a new trend.
JXQW Champion Author Kansas City Posts:2,787 Points:683,325 Joined:Jul 2008	Message Posted: May 2, 2012 9:22:16 AM Ignore JXQW Report Abuse that may save some of the money ...
colaguy Champion Author Columbia Posts:3,166 Points:1,006,150 Joined:Oct 2008	Message Posted: May 2, 2012 9:22:01 AM Ignore colaguy Report Abuse good for them
raccoon2011 Champion Author Massachusetts Posts:1,379 Points:349,020 Joined:Aug 2011	Message Posted: May 2, 2012 9:21:13 AM Ignore raccoon2011 Report Abuse they are takening away east coast refineries
CTarp Champion Author Texas Posts:1,234 Points:605,380 Joined:Apr 2011	Message Posted: May 2, 2012 9:21:03 AM Ignore CTarp Report Abuse Interesting acquisition
tobasco Champion Author Los Angeles Posts:7,346 Points:2,106,710 Joined:Mar 2004	Message Posted: May 2, 2012 9:20:04 AM Ignore tobasco Report Abuse Monday's news.
mikesr100 Champion Author Sacramento Posts:3,878 Points:1,077,810 Joined:Apr 2008	Message Posted: May 2, 2012 9:19:32 AM Ignore mikesr100 Report Abuse I want jet fuel for my Jeep!
95Vette Champion Author Missouri Posts:2,510 Points:629,630 Joined:Sep 2005	Message Posted: May 2, 2012 9:19:14 AM Ignore 95Vette Report Abuse So will they cut out the bag fees since they have cut out the middleman for fuel?
GManCo Champion Author Colorado Springs Posts:4,986 Points:948,890 Joined:Sep 2010	Message Posted: May 2, 2012 9:18:33 AM Ignore GManCo Report Abuse 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.
straz Champion Author Pennsylvania Posts:1,708 Points:540,385 Joined:Jan 2007	Message Posted: May 2, 2012 9:18:06 AM Ignore straz Report Abuse Maybe they will have inflight refueling...just a joke!
preacherboyFL Veteran Author Orlando Posts:444 Points:124,960 Joined:Feb 2012	Message Posted: May 2, 2012 9:17:35 AM Ignore preacherboyFL Report Abuse 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.”
Ticobird Champion Author Huntsville Posts:3,215 Points:1,113,090 Joined:Oct 2009	Message Posted: May 2, 2012 9:17:29 AM Ignore Ticobird Report Abuse 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.