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Delta seals deal to buy Pennsylvania refinery

Reuters -- TRAINER, Pennsylvania (Reuters) - Delta Air Lines (DAL) took the keys to the Trainer, Pennsylvania, refinery from Phillips 66 (PSX.N) on Friday, becoming the first air carrier to wade into fuel production in a bid to bring down costs.

The deal, which revived the shuttered 185,000 barrel-per-day plant and eased fears of a fuel supply shortfall in the U.S. Northeast, was finalized late afternoon, company officials said.

Delta subsidiary Monroe Energy, which will run the plant, will start maintenance at the shuttered plant after the July 4 holiday to restart fuel production in the fall, the company said in a statement.

Monroe will spend about $100 million to convert the refinery, increase jet fuel output to 52,000 bpd and cut back on production of gasoline. Gasoline demand on the East Coas

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Submitted Jun 23, 2012 By: mastermariner

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honda0105 Champion Author Tallahassee Posts:18,818 Points:1,636,245 Joined:Nov 2008	Message Posted: Jun 28, 2012 7:01:13 PM Ignore honda0105 Report Abuse hopefully it won't go belly up.
APlus Champion Author San Antonio Posts:4,013 Points:1,011,020 Joined:Apr 2007	Message Posted: Jun 24, 2012 6:53:15 AM Ignore APlus Report Abuse Good NE needs refinery
ssect8 Champion Author Hartford Posts:8,121 Points:2,117,805 Joined:Jun 2006	Message Posted: Jun 23, 2012 5:00:11 PM Ignore ssect8 Report Abuse Good for them but I bet they will NOT drop the price of their tickets even by a penny. They will just make a bigger profit.
wulf2000 Champion Author Miami Posts:3,156 Points:1,411,580 Joined:May 2005	Message Posted: Jun 23, 2012 3:47:40 PM Ignore wulf2000 Report Abuse Nothing like owning your own refinery.
bart_reed Champion Author Los Angeles Posts:4,110 Points:812,355 Joined:Mar 2011	Message Posted: Jun 23, 2012 2:33:28 PM Ignore bart_reed Report Abuse This could be great for Delta.
cheapertvs Champion Author Richmond Posts:10,425 Points:2,768,445 Joined:Jan 2004	Message Posted: Jun 23, 2012 11:51:02 AM Ignore cheapertvs Report Abuse Delta can possibly win on both ends!!!
CPGas1815 Champion Author Michigan Posts:6,034 Points:1,101,695 Joined:Apr 2008	Message Posted: Jun 23, 2012 11:40:27 AM Ignore CPGas1815 Report Abuse I sure hope this bit of news will reduce the exorbitant cost for airline passengers.
OriginalBudman Champion Author Barrie Posts:11,213 Points:2,276,085 Joined:Apr 2006	Message Posted: Jun 23, 2012 11:31:53 AM Ignore OriginalBudman Report Abuse Good for them. I hope it works. Refiners haven't been profitable.
naiiawah Champion Author Boise Posts:2,520 Points:716,475 Joined:Mar 2011	Message Posted: Jun 23, 2012 11:31:28 AM Ignore naiiawah Report Abuse Will be interesting to see how it turns out.
megadiesellv Champion Author Atlanta Posts:1,474 Points:503,585 Joined:Sep 2011	Message Posted: Jun 23, 2012 11:29:48 AM Ignore megadiesellv Report Abuse this will help Delta to keep their costs down.
AAxterra Champion Author Tennessee Posts:3,855 Points:794,155 Joined:Aug 2008	Message Posted: Jun 23, 2012 11:29:11 AM Ignore AAxterra Report Abuse ok
honda0105 Champion Author Tallahassee Posts:18,818 Points:1,636,245 Joined:Nov 2008	Message Posted: Jun 23, 2012 11:21:55 AM Ignore honda0105 Report Abuse bullseye: not going to make a dent in the NE region's gas supply. Aircraft fuel (kerosine) and gasoline are not stemming from the same oil crack run.
bullseye100 Champion Author New Jersey Posts:2,526 Points:609,055 Joined:Aug 2011	Message Posted: Jun 23, 2012 11:15:24 AM Ignore bullseye100 Report Abuse Good for Delta but bad for the gas supply to the northeast region of the US.
58salty Champion Author Jacksonville Posts:6,826 Points:656,615 Joined:Aug 2011	Message Posted: Jun 23, 2012 11:10:52 AM Ignore 58salty Report Abuse The lesson here boys & girls is if you have LOTS of money you can do anything. You may not know a ball valve from a gate valve but you can buy a refinery & operate it. SUPERQUACK said it best. I'm still waiting for the punchline.
gasper Champion Author Edmonton Posts:4,580 Points:1,392,835 Joined:Mar 2002	Message Posted: Jun 23, 2012 11:00:28 AM Ignore gasper Report Abuse Washington should stop giving billions to wind and solar companies that can not make a go of it and loos tax payers money and pay millions to the company executives who could not run a corner grocery store. I think its time tax payers money goes into refineries and get gas prices down and the economy back to normal. I think people would appreciate the economy bouncing back and not going to food banks and have no jobs because we can not think how we can get the economy moving again and stop with paying other countries money so they will stop fighting with their neighbors.
SUPERQUACK Champion Author Sacramento Posts:6,247 Points:1,937,380 Joined:Jun 2007	Message Posted: Jun 23, 2012 11:00:06 AM Ignore SUPERQUACK Report Abuse KIDDING ..... RIGHT ?????
hibsaw Champion Author Mississippi Posts:8,178 Points:1,708,690 Joined:Feb 2008	Message Posted: Jun 23, 2012 10:59:40 AM Ignore hibsaw Report Abuse That's a great idea. But, I hope Delta can run a refinery better than they run an airline. They are terrible.
momof5MN Champion Author Twin Cities Posts:4,189 Points:221,335 Joined:Feb 2011	Message Posted: Jun 23, 2012 10:57:02 AM Ignore momof5MN Report Abuse And of course that will make airfare on Delta much lower--(tongue in cheek).
jd2009 Champion Author Honolulu Posts:4,269 Points:1,312,680 Joined:Jan 2009	Message Posted: Jun 23, 2012 10:56:17 AM Ignore jd2009 Report Abuse Ok
k2kipp Champion Author Minnesota Posts:3,238 Points:1,147,925 Joined:Sep 2005	Message Posted: Jun 23, 2012 10:56:14 AM Ignore k2kipp Report Abuse interesting
Mustache_33 All-Star Author Toronto Posts:900 Points:181,455 Joined:May 2012	Message Posted: Jun 23, 2012 10:53:51 AM Ignore Mustache_33 Report Abuse hmm
niceguytx Champion Author Houston Posts:13,830 Points:2,740,215 Joined:Sep 2005	Message Posted: Jun 23, 2012 10:53:37 AM Ignore niceguytx Report Abuse It is cheaper than hedging.
MadTraveler Champion Author Idaho Posts:2,082 Points:572,100 Joined:Nov 2009	Message Posted: Jun 23, 2012 10:52:36 AM Ignore MadTraveler Report Abuse That's business.
jpgilmor Champion Author Houston Posts:2,296 Points:630,450 Joined:Feb 2011	Message Posted: Jun 23, 2012 10:44:06 AM Ignore jpgilmor Report Abuse Fill her up and get flier miles coming soon to Delta........
GatorDone Champion Author Savannah Posts:2,539 Points:2,015,530 Joined:Feb 2006	Message Posted: Jun 23, 2012 10:41:26 AM Ignore GatorDone Report Abuse k
mageetp Champion Author British Columbia Posts:3,345 Points:653,435 Joined:Aug 2011	Message Posted: Jun 23, 2012 10:39:09 AM Ignore mageetp Report Abuse Good for Delta and for former employees.
Topshopper2011 Champion Author New Jersey Posts:1,067 Points:290,625 Joined:Aug 2011	Message Posted: Jun 23, 2012 10:39:02 AM Ignore Topshopper2011 Report Abuse sounds like a scam on the gasoline production
rwrMO Champion Author Missouri Posts:2,546 Points:581,170 Joined:Jun 2011	Message Posted: Jun 23, 2012 10:37:47 AM Ignore rwrMO Report Abuse ok
tomklo Champion Author Fort Worth Posts:2,514 Points:2,619,465 Joined:Jul 2002	Message Posted: Jun 23, 2012 10:36:30 AM Ignore tomklo Report Abuse motorist will never see a drop
91Explorer All-Star Author Dallas Posts:634 Points:1,153,265 Joined:Oct 2009	Message Posted: Jun 23, 2012 10:36:25 AM Ignore 91Explorer Report Abuse do we get Delta frequent miles with Delta gas?
ace12012 Champion Author Phoenix Posts:1,800 Points:349,535 Joined:Apr 2012	Message Posted: Jun 23, 2012 10:34:21 AM Ignore ace12012 Report Abuse interesting article.
Valricoslash Champion Author Tampa Posts:6,831 Points:1,379,950 Joined:Nov 2008	Message Posted: Jun 23, 2012 10:33:59 AM Ignore Valricoslash Report Abuse Does this mean lower airfare on Delta now that they will be producing their won juet fuel economically in their own refinery?
N4PIP Champion Author Miami Posts:1,010 Points:445,055 Joined:Jan 2012	Message Posted: Jun 23, 2012 10:33:08 AM Ignore N4PIP Report Abuse This is great news and a good strategy. Putting another refinery back into service helps the overall supply in the long-run.
chicoCA Champion Author California Posts:2,113 Points:1,801,135 Joined:Nov 2007	Message Posted: Jun 23, 2012 10:29:45 AM Ignore chicoCA Report Abuse okay
StraubeyKY Sophomore Author Kentucky Posts:230 Points:228,050 Joined:Dec 2010	Message Posted: Jun 23, 2012 10:29:16 AM Ignore StraubeyKY Report Abuse Let's see if this helps both fuel and airline prices.
pmanning7843 Champion Author Georgia Posts:1,816 Points:364,940 Joined:Jun 2012	Message Posted: Jun 23, 2012 10:28:20 AM Ignore pmanning7843 Report Abuse ok
humblepie Champion Author Toledo Posts:35,300 Points:2,398,095 Joined:Mar 2006	Message Posted: Jun 23, 2012 10:27:16 AM Ignore humblepie Report Abuse they need american oil to succed
dpt Champion Author Michigan Posts:2,272 Points:2,213,450 Joined:Mar 2005	Message Posted: Jun 23, 2012 10:25:36 AM Ignore dpt Report Abuse A little vertical integration going on? Now, will they use it to lower air fares or get rid of some of the extra charges? Didn't think so.
rjd1608 Champion Author Toledo Posts:5,496 Points:1,956,730 Joined:Aug 2003	Message Posted: Jun 23, 2012 10:25:19 AM Ignore rjd1608 Report Abuse ok
Kawibiker Champion Author Illinois Posts:1,221 Points:215,465 Joined:May 2012	Message Posted: Jun 23, 2012 10:23:39 AM Ignore Kawibiker Report Abuse hope it works out
wildddkattt80 Champion Author Phoenix Posts:2,143 Points:432,145 Joined:Jun 2011	Message Posted: Jun 23, 2012 10:21:28 AM Ignore wildddkattt80 Report Abuse Jjkk
heysailor Champion Author Pittsburgh Posts:9,712 Points:2,359,920 Joined:Mar 2006	Message Posted: Jun 23, 2012 10:21:26 AM Ignore heysailor Report Abuse Glad the Steelworkers working there will keep their jobs.
LanguageMan1 Champion Author Tampa Posts:11,861 Points:1,688,515 Joined:Apr 2008	Message Posted: Jun 23, 2012 10:21:16 AM Ignore LanguageMan1 Report Abuse Good for them. Plus they'll not only be refining jet fuel, but gasoline as well. Good on both ends.
puinsai808 Champion Author Honolulu Posts:3,697 Points:754,030 Joined:May 2011	Message Posted: Jun 23, 2012 10:19:01 AM Ignore puinsai808 Report Abuse Good for them. I hope it works. Refiners haven't been profitable.
js0743 All-Star Author Georgia Posts:981 Points:476,330 Joined:Nov 2011	Message Posted: Jun 23, 2012 10:12:44 AM Ignore js0743 Report Abuse Hope this works out for Delta.
unicornpmb Champion Author Buffalo Posts:8,626 Points:1,656,240 Joined:Sep 2005	Message Posted: Jun 23, 2012 10:10:27 AM Ignore unicornpmb Report Abuse Very smart move. Hope they don't over charge them selves.
TustinDad Champion Author Orange County Posts:4,377 Points:915,560 Joined:Feb 2008	Message Posted: Jun 23, 2012 10:09:39 AM Ignore TustinDad Report Abuse BudsterMO wrote: "I hope DELTA's deal works out in lowering jet fuel prices for them and ticket prices for us." Prices won't come down, but maybe the increases won't be as bad.
Gassed01 Champion Author Toronto Posts:6,475 Points:1,825,690 Joined:Jan 2006	Message Posted: Jun 23, 2012 10:07:38 AM Ignore Gassed01 Report Abuse IF they can do it cheaper than where ever they get their fuel from now, I can see other airlines buying from them too.
BudsterMO Champion Author Kansas City Posts:3,845 Points:730,655 Joined:Aug 2009	Message Posted: Jun 23, 2012 10:06:01 AM Ignore BudsterMO Report Abuse I hope DELTA's deal works out in lowering jet fuel prices for them and ticket prices for us.
MRHONEST Champion Author Illinois Posts:2,217 Points:1,695,830 Joined:May 2007	Message Posted: Jun 23, 2012 10:05:37 AM Ignore MRHONEST Report Abuse Lets hope it works out