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FreaknDavid · 01-05-12, 13:49

By James O'Toole
April 30, 2012: 6:51 PM ET

Delta says it expects jet fuel production to begin at the facility during the third quarter of this year.

NEW YORK (CNNMoney) -- Delta Air Lines announced plans Monday to purchase an oil refinery outside of Philadelphia, a novel approach to reducing its fuel costs.

A Delta spokesman said the company believes the purchase is the first of its kind by a major U.S. airline.

Delta will buy the Trainer refinery for $150 million from Phillips 66, a company that is set to be spun off from energy firm ConocoPhillips on Tuesday. The purchase is expected to be finalized by the end of June.
"Acquiring the Trainer refinery is an innovative approach to managing our largest expense," Delta CEO Richard Anderson said in a statement. "This modest investment, the equivalent of the list price of a new widebody aircraft, will allow Delta to reduce its fuel expense by $300 million annually and ensure jet fuel availability in the Northeast."

Delta said it intends to spend $100 million to convert the refinery's existing infrastructure in order to maximize jet fuel production. The site, it noted, offers easy access to New York airports and Delta hubs LaGuardia and JFK.

ConocoPhillips shuttered the Trainer refinery in the fall. Refineries throughout the Northeast have been suffering because they are old and cannot process the cheaper, heavier types of oil that are increasingly in supply from Canada's oil sands, Saudi Arabia, Venezuela and elsewhere.

Richard Soultanian, an energy analyst and co-president at NUS Consulting, called the acquisition "a gamble." Delta, he said, is attempting "to take greater control over one of their biggest inputs," cutting out the costs added by speculators and marketing by intermediaries.

"Owning and operating a refinery is a very different business than what they're accustomed to, so I'll be curious to see how they do that," Soultanian said. "It could be a brilliant move, or it could be an absolute disaster -- only time will tell at this juncture."

BP will supply the crude oil refined at the facility, which will be operated by Delta subsidiary Monroe Energy. Jet fuel production is expected to begin during the third quarter of this year.

The facility will also produce other products, such as gasoline and diesel, that Delta will exchange for jet fuel produced by BP and Phillips 66. These exchanges, combined with the refinery's jet fuel output, will cover 80% of Delta's fuel needs in the U.S., the company said.

photostill · 01-05-12, 18:17

Yeah the oil business is a lot different than the flying business.

This is an airline that was in bankruptcy. Went in Sept 14, 05, came out Mar 30, 07. 5 years later it can buy an oil refinery. This airline by it's bankruptcy, has shown it's not that stable in business matters. Yet they are going to be allowed to run a refinery? Right.

Anyone ever hear of pollution? Of all the regs that the oil and gas industry has to follow and what the punitive damages are for breaking those? Not to mention the cost of the upgrade. I know a bit about the oil industry. I know that if you don't know what you are doing, it won't be long before you are in a serious bind.

I don't think at this point, Delta has the know how to run one. Maybe they can hire that know how but it isn't going to come from within company.

Ladybbird · 02-05-12, 22:44

Wait a minute...... I thought Delta previously declared bankruptcy, so how can they bid to buy AAirlines, who have also recently declared bankruptcy??? Where did Delta get all this money?
Have they paid all their debtors yet after their bankruptcy?

Something a bit fishy here........

01-05-12, 13:49	#1
FreaknDavid Join Date: Mar 2011 Location: In The Hills of Tennessee Posts: 6,631 Thanks: 7,332 Thanked 7,261 Times in 4,751 Posts Awards Showcase Total Awards: 5	Delta Air Lines To Buy Oil Refinery By James O'Toole April 30, 2012: 6:51 PM ET Delta says it expects jet fuel production to begin at the facility during the third quarter of this year. NEW YORK (CNNMoney) -- Delta Air Lines announced plans Monday to purchase an oil refinery outside of Philadelphia, a novel approach to reducing its fuel costs. A Delta spokesman said the company believes the purchase is the first of its kind by a major U.S. airline. Delta will buy the Trainer refinery for $150 million from Phillips 66, a company that is set to be spun off from energy firm ConocoPhillips on Tuesday. The purchase is expected to be finalized by the end of June. "Acquiring the Trainer refinery is an innovative approach to managing our largest expense," Delta CEO Richard Anderson said in a statement. "This modest investment, the equivalent of the list price of a new widebody aircraft, will allow Delta to reduce its fuel expense by $300 million annually and ensure jet fuel availability in the Northeast." Delta said it intends to spend $100 million to convert the refinery's existing infrastructure in order to maximize jet fuel production. The site, it noted, offers easy access to New York airports and Delta hubs LaGuardia and JFK. ConocoPhillips shuttered the Trainer refinery in the fall. Refineries throughout the Northeast have been suffering because they are old and cannot process the cheaper, heavier types of oil that are increasingly in supply from Canada's oil sands, Saudi Arabia, Venezuela and elsewhere. Richard Soultanian, an energy analyst and co-president at NUS Consulting, called the acquisition "a gamble." Delta, he said, is attempting "to take greater control over one of their biggest inputs," cutting out the costs added by speculators and marketing by intermediaries. "Owning and operating a refinery is a very different business than what they're accustomed to, so I'll be curious to see how they do that," Soultanian said. "It could be a brilliant move, or it could be an absolute disaster -- only time will tell at this juncture." BP will supply the crude oil refined at the facility, which will be operated by Delta subsidiary Monroe Energy. Jet fuel production is expected to begin during the third quarter of this year. The facility will also produce other products, such as gasoline and diesel, that Delta will exchange for jet fuel produced by BP and Phillips 66. These exchanges, combined with the refinery's jet fuel output, will cover 80% of Delta's fuel needs in the U.S., the company said. __________________ Rock Out With DreamTeamDownloads1-The Best Place To Be For Downloads. You Can Help the site If You Donate, Please Click Here: DONATE Thank You For Your Support & Membership To DTD1.

01-05-12, 18:17	#2
photostill The Enigma Join Date: Apr 2012 Posts: 9,977 Thanks: 3,009 Thanked 1,524 Times in 928 Posts	re: Delta Air Lines To Buy Oil Refinery Yeah the oil business is a lot different than the flying business. This is an airline that was in bankruptcy. Went in Sept 14, 05, came out Mar 30, 07. 5 years later it can buy an oil refinery. This airline by it's bankruptcy, has shown it's not that stable in business matters. Yet they are going to be allowed to run a refinery? Right. Anyone ever hear of pollution? Of all the regs that the oil and gas industry has to follow and what the punitive damages are for breaking those? Not to mention the cost of the upgrade. I know a bit about the oil industry. I know that if you don't know what you are doing, it won't be long before you are in a serious bind. I don't think at this point, Delta has the know how to run one. Maybe they can hire that know how but it isn't going to come from within company. __________________ You can help this site, by clicking on the link below to buy a Premium Account. & Thank you for helping us. Click;

02-05-12, 22:44	#3
Ladybbird Join Date: Feb 2011 Posts: 47,635 Thanks: 27,644 Thanked 14,458 Times in 10,262 Posts Awards Showcase Total Awards: 8	Re: Delta Air Lines To Buy Oil Refinery Wait a minute...... I thought Delta previously declared bankruptcy, so how can they bid to buy AAirlines, who have also recently declared bankruptcy??? Where did Delta get all this money? Have they paid all their debtors yet after their bankruptcy? Something a bit fishy here........ __________________ PUTIN TRUMP & Netanyahu Will Meet in HELL ..................*SHARKS are Closing in on TRUMP*.......................... *TRUMP WARNS; 'There'll Be a Bloodbath* If I Don't Get Elected'..MAGA - MyAssGotArrested...IT's COMING** PLEASE HELP THIS SITE..Click DONATE & Thanks to ALL Members of ... 1.. THIS SITE IS MORE THAN JUST WAREZ...& TO STOP SPAM-IF YOU WANT TO POST, YOUR FIRST POST MUST BE IN WELCOMES

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