#oilandgasrefining

Likely those who follow any news or updates could think twice about ever working at a refinery during times of War. Companies know they will have to bump up the money to meet the rising risks in order to keep employees and have multiple quick back up plans to hire replacements. Might see early retirements.

This is random but a good read for new folks, not the best forum for this post but since we do not have an alternative one here it goes, hope it helps someone. Folks that have been around the block a while should skip this thread:
https://www.construction-physics.com/p/how-an-oil-refinery-works

European oil refining margins turn negative, bucking global trend
4/14/2026 12:00:00 PM

European refining margins turn negative despite record fuel prices, IEA and traders report
Asian refiners' competition for crude drives up costs, squeezing European margins
Simpler European refineries may cut runs if margin pressure persists, analysts and sources say
European oil refining margins have turned negative, lagging stronger margins in Asia and the U.S., as competition for crude from Asian buyers due to the Iran war drives up costs even as fuel prices hit record highs, according to IEA data and trade sources.

Northwest European light sweet hydroskimming margins dropped to an average of minus $6.45 a barrel in the week beginning April 6, the IEA said in its monthly report.

Margins for medium sour cracking were also in negative territory, the data showed. Light sweet cracking margins remain positive, though they have also weakened significantly.

The margin squeeze is a consequence of the surge in physical crude prices to record highs as the war in Iran disrupts Middle East flows.

The narrowing European margin effectively shows that these plants would be running at a loss, and is likely to prompt some to process less crude into fuels, analysts said.

Simpler European refineries, which lack upgrading units to extract more higher-value products such as jet fuel, could be forced to trim runs if margins remain under pressure, though there is no sign of widespread cuts yet, trading sources said.

"As things stand, Europe is going to cut utilization," Sparta Commodities analyst Neil Crosby said, adding that runs could fall by as much as 500,000 barrels per day.

Asian competition for crude drives up prices. By contrast, in the U.S. Gulf, heavy sour coking margins strengthened last week compared with the March average, IEA data showed. In Singapore, similarly, medium sour cracking margins were also stronger last week than their March averages.

The squeeze in Europe reflects rising crude costs as Asian refiners compete aggressively for cargoes, several trading sources said, as well as higher operating costs such as for electricity and natural gas.

"It's typical of these crises," said a trading source at a European refinery. "Fuel cracks rise first, but as crude and other costs adjust, margins get dented." He added that their margin dropped from about $30 a barrel in the first week of the conflict to just over $4 currently.

The squeeze comes after margins globally soared in March, with those in Europe reaching record highs.

In Singapore, the IEA said, margins in March were some 14-fold higher than February levels, while in northwest Europe light sweet hydroskimming margins in March were more than nine times higher than in February at $15.20 a barrel.

Some refiners even delayed planned shutdowns to take advantage of the higher fuel prices.

Italy's 300,000 barrel per day Sarroch refinery, for instance, pushed a maintenance shutdown from late March to mid-May, industry monitor IIR said. The refinery's operator, Vitol, declined to comment.

https://www.hydrocarbonprocessing.com/news/2026/04/european-oil-refining-margins-turn-negative-bucking-global-trend/

Reliance Industries takes the lead versus Exxon

HOUSTON, March 10 (Reuters) - Construction of a refinery on the southern U.S. border backed by India's ​Reliance Industries (RELI.NS).

Go-Go stated in a recent Barton’s interview that the decent earnings results are a result of all the things that have been done to P66 in the last 4 years.
He said “it’s all coming together”.
No it isn’t. The earnings are the result of good refining margins and nothing else.

Phillips 66 owns a refining system that should be capable of delivering durable, peer-leading returns. The assets are advantaged, the footprint is diverse, and the workforce is experienced. Yet over the past several years, refining has remained a primary source of earnings volatility and inconsistent performance, rather than a stabilizing value engine.

That outcome ultimately sits with leadership.

Under Rich Harbison, Phillips 66 refining has not consistently translated operational capability into shareholder value. While individual sites often perform well, the system as a whole has struggled to demonstrate sustained margin capture or downside protection relative to best-in-class peers such as Valero.

This is not simply an operational issue—it is a commercial and leadership failure.

Phillips 66 frequently points to favorable market cracks and commercial optionality as evidence that refining should perform well. But market cracks do not create value on their own. Value is created when trading, optimization, and asset operations work together to capture those signals consistently and manage volatility when conditions turn.

That responsibility extends beyond refining leadership to the commercial organization.

Under Brian Mandell and Mark Hughes, Phillips 66 has expanded its commercial and trading footprint and repeatedly described it as a differentiator. The implication is clear: stronger trading capability should enhance margin capture and smooth earnings.

The results do not support that claim.

Despite periods of attractive market cracks, Phillips 66 has failed to consistently convert market structure into superior refining returns. Upside capture has been uneven. Downside exposure has been abrupt. Trading appears unable to reliably translate market opportunity into durable value at the enterprise level.

When trading cannot deliver the value implied by the market environment, it ceases to be a hedge or differentiator and becomes just another source of noise layered onto an already volatile business.

This raises uncomfortable questions about focus and accountability.

Valero’s advantage is not just asset quality—it is clarity. Its leadership team is singularly focused on refining and commercial execution. There are no competing internal priorities, no portfolio narratives to balance, and no ambiguity about what success looks like. That focus shows up in more consistent margin capture and more reliable shareholder outcomes.

Phillips 66, by contrast, splits leadership attention across refining, marketing, a growing trading organization, midstream, and chemicals. In that environment, refining leadership must be forceful and commercial leadership must be exceptional. Instead, the system appears fragmented, with no one clearly accountable for turning market opportunity into sustained returns.

This is not a workforce problem. Refineries run. Traders trade. Commercial teams work hard. The issue is coordination, discipline, and leadership effectiveness at the top.

When refining volatility continues to dominate results, when market cracks fail to translate into value, and when trading is invoked more often as an explanation than as a solution, accountability becomes unavoidable.

Phillips 66 has the assets.
It has the markets.
What it lacks is leadership leverage.

Until refining and commercial leadership are held accountable for profitability, volatility management, and peer-relative capture—not just activity and presence—refining will remain a source of frustration rather than a foundation for shareholder value.

The assets deserve better integration.
Shareholders deserve better outcomes.

Not looking good!

Our remaining refineries are facing an existential threat that puts the very fabric of our economy and society at risk.

Without significant and rapid policy intervention, the country’s remaining refineries are at risk of closure, increasing reliance on foreign imports.

Creating a level playing field for Britain’s refineries to compete is in the gift of the Government, and we need to see action.

Watch Paul Greenwood, the UK Chairman of ExxonMobil, deliver this message to members of the Energy Security and Net Zero Committee

https://parliamentlive.tv/Event/Index/3f11ead9-99d8-4c0f-b34e-f1df9d270231?in=15:04:10

New car sales in America are almost at 10 percent EV what does this mean for Exxon and refining in the next 10-15 years

EL SEGUNDO, California (October 3, 2025) — On Thursday, October 2, at approximately 9:30 pm, a fire occurred at the Chevron El Segundo Refinery. The incident took place at a processing unit located near the southeast corner of the facility. Following Chevron’s active response along with support from the cities of El Segundo and Manhattan Beach emergency services, the fire is now out. As a result, Chevron has launched an internal investigation to determine the cause.

Throughout the night, Chevron’s emergency response team has been actively managing the situation with a primary focus on ensuring the safety of employees, responders and the community. All personnel and contractors have been accounted for, and no injuries have been reported. As a precautionary measure, Chevron’s Health Safety and Environmental team has been conducting mobile air monitoring in the community.
Chevron is actively working with local, state and federal agencies, including CalOSHA, CALOSPR and the South Coast Air Quality Management District, who were notified and are monitoring the incident. Chevron is also providing information updates to the California Energy Commission (No period)

Additional updates will be provided as more information is available.

-- END --

Chevron's October 3rd press release about the El Segundo refinery incident is a masterclass in minimization - and a troubling case study in what happens when cost-cutting meets critical infrastructure.

Let's start with the obvious: this wasn't a "fire" as Chevron's sanitized language suggests. Witnesses reported a massive explosion visible for miles. By downplaying the severity in their opening sentence, Chevron immediately undermines their credibility. This is corporate crisis management 101 - control the narrative by controlling the vocabulary.

This incident didn't happen in a vacuum. It follows significant workforce reductions in precisely the departments designed to prevent such disasters: health and safety, operations, and process safety teams. When you cut the people who exist to identify hazards, maintain equipment, and ensure operational integrity, you're not "streamlining" - you're gambling with public safety. This explosion may be the bill coming due.

Someone should tell Chevron's PR team that using "actively" three times in a two-paragraph statement doesn't make their response sound more... active. It makes it sound desperate. "Actively managing," "actively working," "active response" - it's linguistic padding that screams "we need to sound like we're in control."

When companies reduce headcount in safety-critical roles, they often claim they're becoming "more efficient" or "optimizing operations." What they rarely admit is that they're accepting higher risk. Every refinery operator cut is one less person watching gauges. Every process safety engineer laid off is one less person reviewing procedures. Every HSE specialist let go is one less voice saying "wait, this isn't safe."
This press release is exactly what you'd expect from a company trying to manage public perception while potentially sitting on the consequences of their own cost-cutting decisions.

Bottom Line: Chevron wants you to believe this was a minor incident, professionally handled. The reality - a massive explosion at a facility that recently shed safety personnel - tells a different story. The community deserves better than corporate euphemisms and the word "actively" used as a credibility substitute.