Largest East Coast oil refinery goes bankrupt

The biggest refiner on the East Coast, with liabilities of about $10 billion, just filed for bankrupting, citing costly Bush-era EPA regulations and dwindling margins. Is this the first in a string of refiners that will be unable to make it in the new renewable world? What does this mean for the cost of fuel/oil, and if this boosts the price of oil, it looks better and better for renewables as people naturally gravitate toward what's cheaper.

And probably most importantly, am I going to be paying more at the pump because of this?  :)

 

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Well, the biggest losers here are the ones who will be left holding the bag when it comes to the $10 billion in liabilities. About $2 billion of this is owed to railroad giants owned by Berkshire Hathaway.

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The largest oil refinery along the U.S. East Coast filed for bankruptcy protection blaming its downfall on "broken" environmental rules. Philadelphia Energy Solutions said it went bankrupt because of "skyrocketing costs" to comply with the EPA's Renewable Fuel Standard. The rule, aimed at lowering pollution, requires refiners to either blend oil with renewable fuels or buy credits.

The company has received a $260 million lifeline from lenders and investors. Existing shareholders led by private-equity giant Carlyle Group (CG) have agreed to inject $65 million into the company. That's enough to keep its two refineries operational and its 1,100 employees paid.

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Who knew it was possible to go bankrupt refining oil? It's like going bankrupt owning a casino.

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If EPA rules were a real reason all the other refineries would be going into bankruptcy too. 

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1 hour ago, Joanna said:

The largest oil refinery along the U.S. East Coast filed for bankruptcy protection blaming its downfall on "broken" environmental rules. Philadelphia Energy Solutions said it went bankrupt because of "skyrocketing costs" to comply with the EPA's Renewable Fuel Standard. The rule, aimed at lowering pollution, requires refiners to either blend oil with renewable fuels or buy credits.

The company has received a $260 million lifeline from lenders and investors. Existing shareholders led by private-equity giant Carlyle Group (CG) have agreed to inject $65 million into the company. That's enough to keep its two refineries operational and its 1,100 employees paid.

Local printer goes bankrupt printing money

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The refineries get paid $1 per gallon in tax credits to blend biofuels. Philadelphia Energy Solutions was too cheap to put facilities in the to blend biofuels that are also an additional profit center. They contracted it out and let other companies make the money.

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