Marathon CEO says rules may shut some refineries
Date: 19-Dec-02
Country: USA
"I think there will be some refineries that operators won't be able to
make the new investment," Cazalot told reporters at an energy
conference in Houston.
The rules from the U.S. Environmental Protection Agency require the
sulfur content in gasoline and diesel be lowered beginning in 2004.
The total cost for refitting U.S. refineries to comply with the rules
has been placed at $16 billion by industry analysts.
Cazalot was not referring to any of the seven refineries operated by
Marathon's partnership with Ashland Inc. (ASH.N), Marathon Ashland
Petroleum LLC.
Cazalot declined to speculate which refineries might be forced to
close.
"I can't say specifically which ones it'll be," he said.
Analysts have said that the refineries most likely to close are among
the nine that are currently for sale.
At least one refinery, the 68,000 barrel per day plant In Hartford,
Ill., owned by Premcor Inc. (PCO.N), was closed earlier this year
because the company said it was not worth investing hundreds of
millions of dollars to to comply with the rules.
