Over last two years, crude oil prices dropped making the prices for domestic crude about the same as African crude, which was the refinery’s previous supply. After the Dakota Access Pipeline was completed oil trains could no longer compete and Bakken Crude was transported to Gulf Coast refineries. Oil deliveries by rail were halted for several months in 2016-2017.
In the Summer and Fall of 2017 Hurricanes Irma and Harvey shut down many Gulf Coast refineries and interrupted the movement of oil and gasoline to and from the region. Crude oil was sent to Philadelphia to refine and to boost gasoline supplies. PES announced that it was taking about eight-unit train deliveries over a few weeks and used this as an opportunity to remind everyone that having refining infrastructure in the northeast is important. Although true, the statement ignores the fact that the industry contributes to climate change and hurricanes. A few weeks later, Hurricane Maria’s rocky seas interrupted shipments of crude oil from Africa to area refineries. When asked to comment the refiner refused stating that they don’t comment on their day-to-day operations or commercial operations.
