CNN | Saudis to take control of largest U.S. refinery

via CNN:


Saudi Arabia Oil (200x200)Saudis to take control of largest U.S. refinery

by Matt Egan | March 21, 2016

Saudi Aramco, the state oil company of OPEC’s most powerful player, recently announced plans to take full control of the sprawling Port Arthur, Texas refinery. The Gulf Coast facility is the largest refinery in the U.S. and can process 600,000 barrels of oil a day.

Port Arthur has great strategic value, especially given the American oil boom that has eased U.S. appetite for foreign oil.

It will give the Saudis complete control over the refinery. They could then likely bring more of their own crude oil into the U.S. for refining and selling in the North American market.

“Saudi Arabia would have an anchor tenant for much of their crude oil production,” said Tom Kloza, global head of energy analysis at the Oil Price Information Service. “Port Arthur is the jewel the Saudis would like.”

The Port Arthur deal will give the Saudis another avenue for their crude.

“It seems like a relatively astute move by the Saudis. It’s an indication of how much they want to keep a foothold in the U.S.,” said Matthew Smith, director of commodity research at ClipperData. (Read More)

Read the full article on CNN




(3831 Posts)

Leave a Reply