Shuttering, idling of ConocoPhillips and Sunoco refineries could lead to fuel shortages, prices spikes for consumers
WASHINGTON (December 23, 2011) – Representatives Edward J. Markey (D-Mass.), Henry A. Waxman (D-Calif.), and Robert A. Brady (D-Pa.) responded to a new analysis completed today by the Department of Energy’s Energy Information Administration (EIA) on the impact of decisions by ConocoPhillips and Sunoco to idle threerefineries in Pennsylvania that could drastically impact consumers in the Northeast. The Energy Department analysis concluded that the decisions by these oil companies, in part, “could result in spot shortages with price spikes for different fuels in different locations” and “increase price volatility.” According to the EIA, the three refineries that ConocoPhillips and Sunoco plan to idle comprise over 50 percent of thetotal refining capacity in the Northeast. The three lawmakers wrote to the EIA in November with concerns that shuttering refining capacity could lead to tighter supply and increased prices for consumers in the region.
“This analysis by the Department of Energy shows that these oil companies are putting profits ahead of the people living in the Northeast,” said Rep. Markey, top Democrat on the Natural Resources Committee.
“As temperatures drop this winter, consumers in the Northeast shouldn’t have to face price spikes for home heating oil, gasoline and other fuels created solely by oil companies deciding to shutter refining capacity.”
"EIA's report clearly shows the hardship that closing these refineries will cause to my constutuents who rely on home heating oil to stay warm," said Rep. Brady.
The full Energy Department analysis can be found below.
ConocoPhillips made the decision to idle the Trainer Refinery despite that fact that the company stated, “Domestic refining margins significantly improved” in both the first and second quarters of 2011.
A copy of the letter from Reps. Markey, Waxman and Brady to the EIA can be found below.
