I’m wondering why we don’t retool our refineries to run on WTI. I’ve never had anyone explain to me why that would be such a herculean task. And would there be any drawbacks if we did?
Great question, Ken. The answer is it is more about economics than chemistry. My petroleum engineer friend, Dave Wadsworth, told me that "the modifications are pretty straightforward. The naphtha hydrotreating and reforming section of the refinery will have to be expanded. The Coker and FCC (fluid catalytic cracker) will need to be downrated." The question is whether or not the modifications make long-run economic sense in the current anti-fossil fuel and ESG investing environment. Unfortunately, such modifications do not make economic sense for most 1970s-era refineries.
Thanks for the answer. It is a shame that we are no longer making decisions based on the most efficient way to utilize our resources.
I’m wondering why we don’t retool our refineries to run on WTI. I’ve never had anyone explain to me why that would be such a herculean task. And would there be any drawbacks if we did?
Great question, Ken. The answer is it is more about economics than chemistry. My petroleum engineer friend, Dave Wadsworth, told me that "the modifications are pretty straightforward. The naphtha hydrotreating and reforming section of the refinery will have to be expanded. The Coker and FCC (fluid catalytic cracker) will need to be downrated." The question is whether or not the modifications make long-run economic sense in the current anti-fossil fuel and ESG investing environment. Unfortunately, such modifications do not make economic sense for most 1970s-era refineries.