First Oil Refinery to Open in 40 Years Breaks Ground in West Texas

[corbe]

First Oil Refinery to Open in 40 Years Breaks Ground in West Texas

November 20, 2017

OAN Newsroom

The first oil refinery to open in the U.S. in 40 years breaks ground in west Texas.

The MMEX Resources Corporation’s $50 million project is set to be built in Pecos County.

The area holds a significant crude oil supply, and is also railroad accessible.

It will be developed in two phases, and is expected to create hundreds of jobs.

Once it is completed, the 126 acre refinery will be able to process 10,000 barrels of crude oil each day.

<..snip..>

http://www.oann.com/first-oil-refinery-to-open-in-40-years-breaks-ground-in-west-texas/

[thackney]

The first oil refinery to open in the U.S. in 40 years breaks ground in west Texas.

Nope.

There have been quite a few refineries built in the last 40 years, including a couple in the last couple years.

When was the last refinery built in the United States?
https://www.eia.gov/tools/faqs/faq.php?id=29&t=6

The last major refinery was 40 years ago @ 200,000 BPD.  But this latest 10,000 BPD refinery isn't a major refinery.  Bigger refineries have been built within those 4 decades.

[thackney]

More info at:

http://www.mmexresources.com/projects.php

[KingsX]

Nope.

There have been quite a few refineries built in the last 40 years, including a couple in the last couple years.

When was the last refinery built in the United States?
https://www.eia.gov/tools/faqs/faq.php?id=29&t=6

The last major refinery was 40 years ago @ 200,000 BPD.  But this latest 10,000 BPD refinery isn't a major refinery.  Bigger refineries have been built within those 4 decades.

It may be the first oil refinery built in WEST Texas in quite a while.

Back when the Bush family lived in Midland and I was born in Odessa,
there was a huge oil boom happening in west Texas.

[thackney]

It may be the first oil refinery built in WEST Texas in quite a while.

It is, but the claim was:

The first oil refinery to open in the U.S. in 40 years breaks ground in west Texas.

[KingsX]

The refinery in Big Springs is still in operation.

Most refineries are now built on the coast. So the new refinery in Pecos is unusual.

Maybe they are concerned about hurricanes or Saudi Arabia.

[thackney]

The refinery in Big Springs is still in operation.

Most refineries are now built on the coast.
So the new refinery in Pecos is unusual.
Maybe they are concerned about hurricanes.

It is a very small operation only producing Diesel #2, Naphtha and Residual (left over heavy stuff). 

[KingsX]

It is a very small operation only producing Diesel #2, Naphtha and Residual (left over heavy stuff).
 

It makes sense to have that refinery close to its raw material source.

Most of Texas refineries are on the coast.

[thackney]

It makes sense to have that refinery close to its raw material source.

That is only half the equation.  Transporting the products can be just as expensive.  Refineries also have to be located near pipelines and chemical plant operations to be economical, or they have to be tiny like this one with a very limited output.

I suspect most of the Naptha they produces and all of the residual is going to need a pipeline for economical transport.

Also they need support industries.  Operation and Maintenance becomes significantly more expensive the farther you have to travel for the many needs.