Sunoco Oil Refineries Shut Down In Pennsylvania

By
Real Estate Agent with Re/Max Home Team

We are in the throws of one of the worst gas crunches this country has ever seen. Gas  is over $4.00 per gallon in parts of the U.S. and rapidly headed there every where else.  Some experts are convinced we will see $5.00 gas or more. 

  • Gasoline - like it or not - is intertwined with almost every facet of our daily lives and existence.  Mom - Apple Pie and Gasoline.  We depend on it to get to work, shop, and for essential errands we all must run.  Many homes in America still use oil to heat their homes.
  • Our trucking industry which moves the majority of commodites across and around our country has been severely impacted by $4.00 diesel for more than a year. More and more trucking companies and owner operators are going out of business due to the rising costs.
  • While you might consider cutting down your own useage, you will nevertheless be paying higher prices for food, clothing, electronics, appliances etc.


During this recession, many who were unemployed, took lower paying jobs further from home.  The reduced wages and higher transportation costs were accepted by job seekers so their families could be covered by needed benefits.  As unemployment ran out desperate folks took jobs for the sake of getting a job.

  • One of my family members took a job at half pay traveling 80 miles a day to work.  You do what you have to do to bring in some money, and cover your family with health insurance.


  • With gasoline prices creeping above $4 a gallon his paycheck will dwindle drastically.  Working harder and longer for less money.  This is economic recovery?


It was announced that two major oil refineries owned by Sunoco in Pennsylvania will be closed.  Closed?  Are you kidding?  These refineries have been part of the Pennsylvania economic landscape for generations.

Marcus Hook Refinery
One is located in Marcus Hook Pa along the Delaware River.You can readily see this massive facility when you cross the Delaware Memorial Bridge into New Jersey.


Almost 600 people have received pink slips.  The refinery has operated for 110 years producing 175,000 barrels a day. 

Safe to say that most of the families in this town are employed by Sunoco.Another economic disaster for Pennsylvania. Marcus Hook Refinery


Philadelphia Sunoco RefineryThe second refinery is located in the heart of Philadelphia along the Schuylkill River. 


If you have ever traveled in or out of the Philadelphia International Airport you have seen this giant refinery complex. 


For those of you who do not live in the North East this is a major loss in gasoline production impacting the entire country.  For those couple thousand who will now be unemployed it's a huge economic hit to the Philadelphia  unemployment rolls. Sunoco Philadelphia Refinery


How many oil refinery jobs are available that these folks can qualify for new employment?

  • Sunoco had hoped to find buyers for these two refineries prior to the targeted shut down date.  Previously Sunoco sold their refineries in Toledo Ohio.


President Obama says that he cannot control oil prices.  I agree that he alone cannot wave a magic wand and make this all go away. I'm not being critical of him, but I have to ask - Who in Washington has their eye on the ball? 

  • Certainly the anticipated lose of 3 major refineries should have come to the attention of law makers.  A concerted effort by Washington could and should be made to salvage an industry component so critical to the survival of our country.


If we bailed out GM - we should be just as anxious to save U.S. oil refinery capabilities.  Imported or domestic oil still has to be refined before it is used.

Our military rely on refined oil products. Should our military go on an austerity campaign? 

  • Our Police, Ambulance and Fire departments rely on oil to deliver critical services. Those services are often paid for through real estate taxes. We can expect those taxes to increase nationwide.  Smaller towns, cities and rural America rely on volunteers to provide services paid for via community donations. 

Our airline industry depends on oil and to not only move passengers, but freight as well. 

  • One of the issues raised by Sunoco, in addition to the fact that these refineries lost money, was they were tooled to only process Sweet Africian Oil not Texas crude.  So what!  GM re-tooled.  It costs millions to re-tool plants.  If we are to open drilling in the U.S. or even consider the Keystone Pipeline again, wouldn't these long standing refineries be of value? 


Who could possibly buy an oil refinery?  If other U.S. oil companies were interested they would have been sold by now.  Maybe the Chinese will want to buy them to refine their Canadian oil. 

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Topic:
Real Estate General Information
Location:
Pennsylvania Lackawanna County Scranton
Groups:
Tea Party
Silent Majority
Posts to Localism
Politics And Real Estate
Pennsylvania Realtors
Tags:
sunoco closes oil refineries
pennsylvania sunoco oil refinery
philadelphia pa sunoco oil refinery

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Rainmaker
243,792
Bonnie Vaughan
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin
Re/Max Home Team

Than  It certainly seems like no one is paying attention.  Soon they will dole out coupons for gas to us.  Use your coupons no more gas

March 19, 2012 06:20 PM
Rainmaker
376,755
Karl Hess
on The Jersey Shore
Keller Williams Ocean County

Part of the problem with a lot of American based refineries is that the companies that own them have refused to invest in upgrades...unlike our foreign competitors...

People always seem to complain about infrastructure spending, but when it starts biting us in the butt, we wonder how we fell so far behind.

But on gas prices no one seems to want to acknowledge that we EXPORT a helluva lot of gas.  Why? Because oil companies can get better prices overseas, which means that our gas prices, in comparison to the rest of the industrialized world, aren't so bad.

Remember, we Americans, don't OWN the oil that comes out of the ground, it is owned by the companies that extract it and prices are determined by the world oil market.

March 20, 2012 05:02 AM
Ambassador
693,011
Mike Frazier
Dyersburg Tn Real Estate
Carousel Realty of Dyer County

Bonnie,

Guess these refineries were getting too much tax payer money to stay in business. Obama says the free money to oil companies has to stop. They will for sure there in Pennsylvania.

March 20, 2012 08:01 AM
Rainmaker
243,792
Bonnie Vaughan
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin
Re/Max Home Team

Karl:  Investing in upgrades was the point I was trying to make.  Here is an article on West African Sweet Oil production.  Towards the middle of the article is a statement that demand from the US has dropped because some of our Atlantic refineries have stopped buying. The drop was about 50%.  http://af.reuters.com/article/energyOilNews/idAFL5E8D63M620120206

What were we doing with that oil when Sunoco was refining it?  Using it here or selling it overseas?   According to the story I read Sunoco was getting out of the refiing business and focusing business interests elsewhere.

I also gleaned that sweet oil has less sulphur than our Texas oil.

 

March 20, 2012 04:55 PM
Rainmaker
243,792
Bonnie Vaughan
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin
Re/Max Home Team

Mike

Thousands of people will be out of jobs.  Underlying industries like trucking will lose the revenue as well.  Those storage tanks left to decay will be a hazard.  More so if they are empty.  What a target they will be.

March 20, 2012 04:57 PM
Anonymous
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Rainmaker
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Bonnie Vaughan

CNE SFR - Buyers/Sellers - Lackawanna & Surroundin
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