Despite surging gasoline costs, there could by no means be a new refinery built in the U.S., Chevron CEO says – latest Tweet by Bloomberg

Chevron Phillips Chemical Co. has reached a settlement with the US Environmental Protection Agency (EPA) and the US Department of Justice (DOJ) to resolve a sequence of claims alleging the operator violated the US Clean Air Act (CAA) and associated state air pollution control legal guidelines by illegally emitting hundreds of tonnes of harmful pollutants by way of flaring at three of its Texas petrochemical manufacturing crops.
As a part of the Mar. 9 judicial settlement, Chevron Phillips signed a consent decree lodged in the Southern District Court of Texas under which the operator has agreed to spend an estimated $118 million to complete essential pollution-controlling upgrades and implement air-quality monitoring systems at its Port Arthur, Sweeny, and Cedar Bayou plants situated in Port Arthur, Sweeny, and Baytown, Tex., respectively, EPA and DOJ said.
Designed to enhance Chevron Phillips’s flaring practices and compliance—an EPA priority under its Creating Clean Air for Communities National Compliance Initiative—the proposed consent decree requires the operator to reduce flaring by minimizing the quantity of waste fuel despatched to the flares. Chevron Phillips additionally must improve combustion efficiency of its flares for when flaring is important, EPA mentioned.
The operator also will pay a $3.4-million civil penalty for the past violations no later than 30 days after the effective date of the consent decree that—currently inside its 30-day public comment interval scheduled to end on Apr. 14—still remains topic to last courtroom approval, in accordance with a Mar. 15 discover within the Federal Register.
Once Chevron Phillips absolutely implements pollution controls at the three Texas chemical vegetation as required by the consent decree, EPA estimates emissions of climate-change-causing greenhouse gases (GHGs)—including carbon dioxide (CO2), methane, and ethane—will fall by greater than seventy five,000 tonnes/year (tpy). The settlement additionally should lead to lowered emissions of volatile organic compounds (VOCs) by 1,528 tpy, of nitrogen oxides by 20 tpy, and of hazardous air pollution (HAPs)—including benzene—by 158 tpy, EPA stated.
The March settlement arises from EPA’s unique criticism towards Chevron Phillips, in which the company alleges the operator, at various time between 2009 and the current, performed improperly reported, unreported, and-or unpermitted modifications at 18 flares located across the Port Arthur, Sweeny, and Cedar Bayou crops, triggering a series of CAA-related noncompliance infractions, including violations of:
New supply evaluate (NSR) necessities for newly constructed and modified sources of criteria air pollution.
Title V permitting necessities for NSR violations.
Federal new supply efficiency standard (NSPS), national emission standards for hazardous air pollutants (NESHAP), and maximum achievable management know-how (MACT) necessities included into the Title V permit associated to monitoring to make sure flares are operated and maintained in conformance with their design.
NSPS, NESHAP, and MACT necessities incorporated into the Title V permit associated to operating flares in keeping with good air air pollution control practices.
NSPS, NESHAP, and MACT necessities included into the Title V permit associated to combusting gas in flares with a internet heating worth (NHV) of 300 BTU/scf or larger.
Specifically, pressure gauge ราคา ถูก did not correctly operate and monitor the chemical plants’ industrial flares, which resulted in extra emissions of poisonous pollution at the site. The criticism moreover claims the operator often oversteamed the flares and has didn’t comply with different key working constraints to ensure VOCs and HAPs contained in flare-bound gases are efficiently combusted.
Specific upgrades, implementations
Per the consent decree, Chevron Phillips has agreed to the following measures to reduce the quantity of waste gasoline sent to flares at the Texas plants:
At Cedar Bayou, the company will operate a flare gas recovery system that recovers and recycles gases as a substitute of sending them for combustion in a flare. The system will allow the plant to reuse these gases as an internal gasoline or a product for sale.
At Port Arthur and Sweeny, Chevron Phillips will be required to amend its air quality permits to limit the flow of fuel at chosen flares.
The firm additionally will create waste minimization plans for the three crops that may additional cut back flaring.
For flaring that must occur, Chevron Phillips will set up and operate instruments and monitoring techniques to make sure that the gases sent to its flares are effectively combusted.
The company will also surround every of the three lined crops at their fence traces with a system of displays to measure ambient levels of benzene—a carcinogen to which chronic publicity can cause quite a few well being impacts, including leukemia and antagonistic reproductive results in women—as well as publish these monitoring results via a publicly available web site to provide neighboring communities with more details about their air quality.
If fence-line monitoring information indicates high levels of benzene, Chevron Phillips will conduct a root trigger analysis to find out the supply and take corrective actions if emissions exceed sure thresholds.
According to the consent decree, however, Chevron Phillips already has undertaken a series of actions to scale back flare-related emissions on the trio of plants. These embrace:
At all three plants, equipping every lined flare with smaller assist-steam controls (to optimize assist-steam injection at low waste-gas move rates); implementing flare stewardship metrics (to reduce flaring); and optimizing process unit procedures and operations (to cut back flaring).
At Cedar Bayou, changing supplies for flare sweep gasoline from nitrogen to plant gasoline gasoline, leading to reduced use of supplemental gas use and decreased emissions.
At Port Arthur, replacing the sort of catalyst used in acetylene converters, resulting in longer cycle times between regenerations and lowered emissions.
At Port Arthur, switching the fabric for a quantity of dryer regenerations from nitrogen to a course of fluid with the next NHV, resulting in reduced use of supplemental gasoline and reduced emissions.
Environmental justice prioritized
The latest Tweet by Bloomberg states, ‘Despite surging gasoline prices, there may never be a model new refinery built in the us as policymakers move away from fossil fuels, Chevron CEO says.
“We haven’t had a refinery constructed in the United States since the Seventies,” Chief Executive Officer Mike Wirth mentioned in an interview on Bloomberg TV. “My personal view is there’ll never be another new refinery built in the United States.”
The Biden administration has appealed to OPEC and the us shale producers to pump extra crude to help lower gasoline costs this 12 months. But even when oil prices were to fall, the U.S. could not have enough refining capability to the meet petroleum product demand. Refining margins have exploded to traditionally high ranges in recent weeks amid decrease product provides from Russia and China and surging demand for gasoline and diesel.
And adding refining capacity isn’t simple, especially within the present surroundings, Wirth mentioned.
“You’re taking a glance at committing capital 10 years out, that will need many years to offer a return for shareholders, in a coverage surroundings where governments around the globe are saying: we don’t need these merchandise,” he mentioned. “We’re receiving mixed signals in these policy discussions.”
U.S. retail gasoline costs averaged $4.76 a gallon today, a record excessive and up 45% this year, in accordance with AAA. East Coast stockpiles of diesel and gasoline inventories in the New York-region are at their lowest levels for this time of 12 months because the early Nineties, raising the specter of gas rationing, simply as the us enters summer driving season. Even with excessive costs, Wirth is seeing no indicators of shoppers pulling again.
“We’re still seeing actual energy in demand” despite worldwide air travel and Chinese consumption not yet back to their pre-pandemic ranges, Wirth stated. “Demand in our trade tends to move quicker than supply in each directions. We noticed that in 2020 and we’re seeing that right now.”
Chevron couldn’t instantly increase production right now even if it wanted to due to the considerable lead times in bringing on oil and fuel wells, even within the short-cycle U.S. shale, Wirth mentioned. The CEO expects to fulfill with the Biden administration when he’s in Washington subsequent week.
“We need to sit down down and have an honest conversation, a practical and balanced conversation about the relationship between energy and economic prosperity, national security, and environmental safety,” Wirth mentioned. “We need to recognize that every one of these matter.”

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