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Entries in ConocoPhillips (4)

Tuesday
May012012

Delta Airlines Buys Pennsylvania Oil Refinery

Delta Airlines(TRAINER, Pa.) -- Airlines everywhere have been suffering due to high fuel prices.  Now Delta Airlines has decided to purchase its own oil refinery from ConocoPhillips -- a move the airline says will save around $300 million a year in jet fuel costs.

The deal between Monroe Energy LLC, a Delta subsidiary, and Phillips 66 was announced Monday.  As part of the deal, Monroe will receive $30 million from the state of Pennsylvania for creating jobs and improving infrastructure, according to the Atlanta Journal-Constitution.

Gregg Laskowski, a senior petroleum analyst at Gasbuddy.com, says Delta's purchase makes sense.

"If an airline has the opportunity to try and control its fuel costs, certainly buying a refinery is one way to do it," Laskowski said.  

Delta expects that the jet fuel it will make at the refinery south of Philadelphia, along with a few deals for more, will cover about 80 percent of the fuel it needs for its planes in the U.S.

"If Delta can do that and keep that refinery operating, that's going to be very good news for consumers," Laskowski said.

There are currently three refineries in Pennsylvania, two owned by ConocoPhillips.  All three refineries represent 700,000 barrels a day of capacity -- more than half the East Coast refining capacity.  Not only could the deal reduce fuel costs for Delta, it could also save refinery jobs, Laskowski notes, emphasizing the deal's importance to both the public and private sectors.

"There's an awful lot at stake here.  And that's probably the reason why there's all kinds of effort from both the public and private sector to keep this moving," he said, adding, "The United Steel Workers can tell you there's hundreds of jobs at stake.  They certainly want to see those jobs retained at these refineries without interruption."

Copyright 2012 ABC News Radio

Saturday
Jul302011

ConocoPhillips Purchases Colorado Shales for Gas, Oil Expansion

Robert Nickelsberg/Getty Images(DENVER) -- ConocoPhillips announced that it has bought 46,000 acres in Colorado to expand its oil and natural gas drilling.

The company did not reveal the details of the exchange, although they bought the land from the Lario Oil & Gas Co.

ConocoPhillips announced earlier this month that it was privatizing its refining business in order to increase returns for its shareholders.

Copyright 2011 ABC News Radio

Tuesday
May102011

Senate Finance Committee to Hear from Big Oil Execs at Hearing Thursday

Comstock Images/Thinksto(WASHINGTON) -- The Senate Finance Committee, chaired by Montana's Sen. Max Baucus, will hold a hearing Thursday morning with the executives of the five oil companies targeted by the Democrats’ new bill, called the Close Big Oil Tax Loopholes Act.

The new measure is intended to scrap $2 billion in tax subsidies each year for the five largest and most profitable oil companies and, in turn, apply the savings to paying down the federal deficit.  

The committee will ask John Watson, Chairman of the Board and CEO of Chevron Corporation; Marvin Odum, U.S. President of Shell Oil; H. Lamar McKay, Chairman and Presidnt of BP America Inc.; James Mulva, Chairman and CEO of ConocoPhillips; and Rex Tillerson, Chairman and CEO of Exxon Mobil, to defend the subsidies, especially in the wake of recent high oil company profits.
 
Senate Majority Leader Harry Reid on Tuesday said he plans to kick off debate on the new bill on Wednesday, with a vote scheduled “in the next week.”
 
“Every year oil companies get billions of dollars of subsidies from the American taxpayers,” Reid said. “Common sense tells us these oil companies do not need these huge subsidies. We've had executives of these oil companies who have said so in the past. Recently the former CEO of Shell has said that. And economists recognize that these subsidies, if we took them away, would not affect gas prices at all."

Reid continued, "The only purpose these subsidies serve is to line the pockets of these oil companies. The most effective way to bring down the deficit is to start now and make good, smart choices. Putting seniors ahead of oil companies should be a no-brainer.”

But the Democrats face an uphill battle in passing their measure. It will need 60 votes to advance, a long shot in a chamber where there are only 53 Democrats and even some of them -- like Louisiana’s Mary Landrieu -- don’t support the measure. Republicans have vociferously opposed the bill.

Copyright 2011 ABC News Radio

Wednesday
Apr272011

Top Five Oil Companies Have High Expectations for Earnings

JIM WATSON/AFP/Getty Images(WASHINGTON) -- BP and ConocoPhillips announced their first quarter earnings on Wednesday, continuing the week when the biggest oil companies begin to release their 2011 profits. With rising gas and oil prices, analysts expect the five biggest oil companies to announce that they are swimming in revenue.

ConocoPhillips announced that its first quarter earnings increased 43 percent to $3 billion from $2.1 billion in the same period last year. BP's first quarter earnings were down this year -- $5.48 billion compared with $5.60 billion during the first quarter a year ago -- including a charge of $384 million related to oil spill in the Gulf of Mexico.

Valero Energy, based in San Antonio, Texas and the largest independent U.S. refiner, announced on Tuesday a first quarter profit of $98 million "primarily due to higher margins for diesel and jet fuel" compared to a first quarter loss last year of $113 million.

Energy behemoth Exxon Mobil is scheduled for Thursday while Chevron is slated for Friday. Marathon Oil, based in Houston Texas, will announce its earnings next week on May 3.

On Tuesday, the price of light, sweet, crude oil futures settled at $112.21 a barrel. Many analysts are waiting to see if oil prices will break the most recent high of Sept. 22, 2008, when oil settled at $120.92 a barrel.

The national average for regular gas is $3.88 a gallon, the highest since August 2008, according to the Department of Energy this week.

Copyright 2011 ABC News Radio







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