Join discussions on moving to and living in the USVI, ask questions, share info & tips! (Vacationing? Visit Travel Message Board)


delta bought a refinery

loungestx
May 01, 2012 12:05AM

Registered: 10 years ago
Posts: 189

Not here, near Philadelphia. They figure they can save $300 million a year by making their own fuel, they paid $150 mill. Maybe that is the correct angle for looking to find a buyer for Hovensa. Especially if it works for Delta there may be other airlines looking to do the same.

Re: delta bought a refinery

Jumbie
May 01, 2012 05:13AM

Registered: 8 years ago
Posts: 647

Bought a "mothballed" refinery that had been vacated years ago..

Re: delta bought a refinery

Beeski
May 01, 2012 06:24AM

Registered: 9 years ago
Posts: 602

But that refinery near Philly:
a) can probably use natural gas to power / refine the oil
b) doesn't have a $700 EPA "consent decree" (fine) attached to it

Re: delta bought a refinery

Jumbie
May 01, 2012 07:41AM

Registered: 8 years ago
Posts: 647

Quote
Beeski
But that refinery near Philly:
a) can probably use natural gas to power / refine the oil
b) doesn't have a $700 EPA "consent decree" (fine) attached to it

Got that right Beski cool. This thing (aka Hovensa) down here is a totally different situation - a lot of "baggage" -like fuel source to power the refinery & the humongus EPA compliance price tag hanging over it.

Re: delta bought a refinery

vicanuck
May 01, 2012 07:58AM

Registered: 7 years ago
Posts: 2,093

Plus the refinery Delta bought includes exisiting pipelines right to thier airport hub operations.

Definitely a great strategic move on Delta's part.

No such thing is going to happen with Hovensa.

Re: delta bought a refinery

watruw8ing4
May 01, 2012 08:00AM

Registered: 10 years ago
Posts: 849

Quote
Jumbie
Bought a "mothballed" refinery that had been vacated years ago..

AP says that refinery shut down last fall. (?) State of PA offered Delta a $30 million grant to seal the deal. Wonder if the VI has $30 mil lying around. happy

Re: delta bought a refinery

vicanuck
May 01, 2012 08:22AM

Registered: 7 years ago
Posts: 2,093

The VI doesnt even have $650 K to pay Abramson for school buses.

DeJonge gave away all the money to Diageo.

Re: delta bought a refinery

IslandHops
May 01, 2012 09:08AM

Registered: 9 years ago
Posts: 929

Was government funds really given to Diagao? I didn't think so.
In my simple understanding, bonds were floated for the construction of the facility to be paid back by the part of the additional rum tax revenue - or am I wrong. If no bonds, then no factory, no jobs, and no additional revenue to the territory.
Why was this such a bad deal? How about some facts to back up the rhetoric and accusations.

Re: delta bought a refinery

OldTart
May 01, 2012 09:24AM

Registered: 6 years ago
Posts: 6,524

Quote
IslandHops
How about some facts to back up the rhetoric and accusations.

What a concept. thumbs up

Re: delta bought a refinery

jefgar
May 01, 2012 10:40AM

Registered: 11 years ago
Posts: 137

OK, so they own a refinery. They still have to buy the oil to refine.

Re: delta bought a refinery

Jumbie
May 01, 2012 02:16PM

Registered: 8 years ago
Posts: 647

Quote
watruw8ing4
Quote
Jumbie
Bought a "mothballed" refinery that had been vacated years ago..

AP says that refinery shut down last fall. (?) State of PA offered Delta a $30 million grant to seal the deal. Wonder if the VI has $30 mil lying around. happy
--my bad -last fall is correct.

Will be buying crude from BP.

Re: delta bought a refinery

MissJustice
May 02, 2012 08:40AM

Registered: 5 years ago
Posts: 548

They can get Larry Knepfer ?sp to run it.

Re: delta bought a refinery

Dave
May 02, 2012 06:40PM

Registered: 11 years ago
Posts: 74

I wonder if Seaborne or Cape Air know about this???

Re: delta bought a refinery

saucey
May 02, 2012 10:00PM

Registered: 9 years ago
Posts: 226

Larry Kupfer just might be the one to run[something] over there. He's been hired by VINGN. He has knowledge of the facility. Should Hovensa decide to sell, the union has first option. Oh, wait! What union? 2nd in line is the GVI, aka, VINGN.

BINGO!

Will the gov't entity VINGN buy the place with our money so they can build castles with our import/port fees?

Re: delta bought a refinery

Mytcar34
May 03, 2012 11:11AM

Registered: 5 years ago
Posts: 68

I think this is the old Trainer refinery that Conoco Phillips owned. I wish Delta good luck on there venture.I hope they know what there getting in to. If Conoco Phillips could not turn a profit useing there own oil how will Delta having to buy oil from someone else?

Re: delta bought a refinery

aerobum
May 07, 2012 04:45PM

Registered: 7 years ago
Posts: 44

That plus the fact that jet fuel is a small part of the fractionization for crude and I don't understand how Delta is seeing an advantage with this move. If they bought a massive storage facility and wanted to store-forward when prices are lower as a hedge that I could sort of understand (of course they could hedge on the open market without buying facilities as well.)

The airlines can barely manage to keep themselves out of bankruptcy. I've no idea how they think they can make a go at being an independent refiner at a time when refining margins have been and will be challenged for years.



Edited 1 time(s). Last edit at 05/07/2012 04:46PM by aerobum.

Re: delta bought a refinery

STXBob
May 07, 2012 04:55PM

Registered: 11 years ago
Posts: 2,116

Maybe Delta just wants to diversify. Petroleum companies seem to be more profitable than airlines.

Re: delta bought a refinery

OldTart
May 07, 2012 05:29PM

Registered: 6 years ago
Posts: 6,524

Delta has a good three year deal with BP for its crude and the rationale behind their decision may be partly based on this and the fact that apparently new fuel-efficient jet engines currently under production won't be off the line for at least the next three years, by which time they can start to gradually replace the older fleet. I'm only basing this thought after reading several articles on the acquisition but that seems to make some sense.

Join the discussion. Click the button below to Login or Register now!

Click here to login

  • Blue Ocean Transport

Moving to the U.S. Virgin Islands?

Settlers Handbook
Only $17.95

The Settlers Handbook for the U.S. Virgin Islands is your guide to moving to St. Croix, St. Thomas, St. John and Water Island.

The current 18th Edition, released in January 2016, will help you explore your dream of island living. A solid reference book, it was first published in 1975. That's 40 years of helping people move to the islands. A must read. Order today.

Order Today

Advertise

Join VIMovingCenter.com Today!

Tell prospective and current residents about your business.

Learn More →

Sister Sites

VITraders

USVI Books & Souvenirs

VInow

USVI Vacation Guide

Living in de V.I.

USVI Relocation DVD

Proud Supporter

VI Olympic Team

For over 45 years, the Virgin Islands has celebrated the Olympic tradition by sending our athletes to compete.

Learn More →