Refinery in Alaska


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Posted by Brett in AK on Monday, July 13, 2009 at 23:17:33 :

In Reply to: Re: OT: Not here in Alaska posted by David Sherman on Monday, July 13, 2009 at 11:46:25 :

Dave,

The refinery in North Pole has a better deal than most. They are tapped into the pipeline. When they finish the refining process they reinject the residuals back into the line, eliminating one of the costs of what to do with the "sludge". The refinery has changed hands several times over the years and I believe now belongs to Williams Energy. I believe the main reason for the possible shutdown is the ever increasing demands by the EPA. It would cost millions to upgrade the existing equipment to meet the new emission requirements. It seems as though they no sooner make the upgrade and it's changed yet once again. It's a never ending process. Given what they have to pay for the crude and what it's selling for the cost would have to be passed onto the consumer and most if not all believe we are already paying too darned much already. At one time the pipeline used to produce it's own jet fuel to power the turbines that run the pumps. It finally became more cost effective to simply shut down the cracking units or mini refineries and buy the fuel from local suppliers. As I understand it all of the AVgas 100LL is still being barged up to Alaska from the lower forty eight. For the time being however let's blame it on Robert's choo-choo trains and how much they are charging to transport the fuel down to Los Anchorage!



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