Refiners concerned by Obama’s energy plan
The Obama plan to cut U.S. oil consumption, by favoring biofuel like ethanol, could push a number of refiners to go bankrupt, industry groups warn.
Refiners are already feeling the pain from the slowing economy. Just yesterday, Valero, one of the country’s largest refiners, announced it was closing an entire refinery for the quarter because of sluggish demand.
Things could get worse…
Long term refiners are concerned that Obama’s plan to cut U.S. demand by about 4 million barrels per day over the next decade– the same as the combined daily consumption of Canada and France — could lead a lot of refineries to go bankrupt.
On Monday, Obama kickstarted a portion of that plan when he signed an executive order forcing federal regulators to reconsider a proposal by California and 13 other states to enforce their own emissions standards, a move that could pave the way to the development of a national carbon standard for automobiles.
Energy plan aims to cut oil use (The Financial Times)
Valero temporarily shutting Texas City refinery (The Houston Chronicle)
