Senate Majority Policy Committee Examines Statewide Impact of Southeast PA Refinery Closures

Harrisburg – The Senate Majority Policy Committee, chaired by Sen. Ted Erickson (R-26), held a public hearing today to examine the possible impact of three planned oil refinery closures on statewide fuel supplies.

The refineries, located in Philadelphia, Marcus Hook and Trainer, supply gasoline, diesel fuel, heating oil and other petroleum products across the commonwealth and elsewhere. The facilities have been put up for sale and could be dismantled.

"While we must consider the impact on fuel supplies, the most important issue is the potential job loss if the refineries close down," said Senator Erickson. "We've got to work even harder to keep these refineries open. The loss of jobs would be devastating."

The committee heard from energy researcher and consultant Kevin J. Lindemer; Russell D. Christoff and John Kulik of the Pennsylvania Petroleum Marketers and Convenience Store Association (PPMCSA); and Dennis Rochford of the Maritime Exchange for the Delaware River and Bay.

Mr. Lindemer discussed a report he prepared for PPMCSA titled "Market Implications of East Coast Refinery Closings," which outlined the driving forces behind East Cost refinery closures and their impact.

Mr. Kulik told the committee that losing the Philadelphia refinery, in addition to those that have closed in Marcus Hook and Trainer, would be a serious blow.

"The shuttering of all three refineries in question would result in a historic quantum change in how energy is provided to the Commonwealth. We would no longer have the strong production presence within the state that has been there back to the invention of the automobile," he said.

He noted the impact of the closings could be especially serious in the Pittsburgh region, where federal regulations require use of a specific blend of gasoline provided by the refineries, and urged that the requirement be repealed or at least suspended for the summer.

Dennis Rochford, president of the Maritime Exchange for the Delaware River and Bay, testified that the Gulf of Mexico has refinery capacity to fill the void. However, he indicated that the higher costs associated with shipping the oil as well as the availability of tankers or barges to bring the product from the Gulf are issues that must be considered.

Contact:

Michele Hansarick
717-787-1350

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Senate Majority Policy Committee Examines Statewide Impact of Southeast PA Refinery Closures