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It was the sort of deal that is a shocker because it goes completely against the trend in the oil business.
The transaction in question was the recent announcement by
Phillips 66 (NYSE: PSX) that it was going to reverse integrate its renewable diesel operations. In doing so, the company sent two messages.
One, which it had already signaled but reaffirmed with the move, is that renewable diesel is extremely important to the U.S. refining sector.
The second is that to make renewable diesel, you need feedstocks. And companies with big renewable diesel plans need to worry about that.
Red-hot renewable diesel encouraging producers to buy into upstream supply chains
‘Reverse integration’ could be the name of the game, following significant move in soybeans by Phillips 66
0 805 5 minutes read tankage at the San Francisco Refinery’s Rodeo plant, with the refinery and future site of Rodeo Renewed in the background, along with San Pablo Bay. Photo: Phillips 66
(Editor’s note: Further information on the long-range plans at Rodeo Renewed has been added from initial publication.)
It was the sort of deal that is a shocker because it goes completely against the trend in the oil business.
The transaction in question was the recent announcement by Phillips 66 (NYSE: PSX) that it was going to “reverse integrate” its renewable diesel operations. In doing so, the company sent two messages.
Refinery margin tracker: California demand drives USWC margins higher
Anticipation of California’s post-coronavirus pandemic reopening combined with lower regional refinery runs and inventories are providing strong support for US West Coast refining margins, according to a May 3 analysis by S&P Global Platts.
“California has announced opening in mid-June, which should support demand,” said Brian Mandell, head of Phillips 66’s commercial division, on the company’s April 30 first-quarter results call, referring to the state’s rising gasoline demand once mobility returns.
“We are seeing a correlation with the increase in vaccines and the increase in vehicle miles traveled and demand for gasoline,” he added.
Not registered? Receive daily email alerts, subscriber notes & personalize your experience. Register Now California has announced opening in mid-June, which should support demand, said Brian Mandell, head of Phillips 66 s commercial division, on the company s April 30 first-quarter results call, referring to the state s rising gasoline demand once mobility returns. We are seeing a correlation with the increase in vaccines and the increase in vehicle miles traveled and demand for gasoline, he added.
US West Coast cracking margins for Alaska North Slope averaged $17.12/b for the week ended April 30, compared with the $15.93/b the week earlier, according to margin data from S&P Global Platts Analytics.