When things blow up

"On June 21, the Philadelphia Energy Solutions (PES) 335,000 barrels per day (b/d) refinery in South Philadelphia experienced a major fire and explosion. The resulting damage to the refinery and preexisting financial strains led PES to announce its intention to shut down operations at the refinery.”  (Source EIA)  That’s 25% of the East Coast’s refining capacity gone “boom”.  What it means to the Petroleum Administration for Defense District #1 (basically the North East) which uses 31% of the country’s diesel, is:
  • more imports
  • an attempt to get more volume though existing pipelines
  • greater vulnerability for fleets – recall many people heat with oil in that area
  • higher costs