In my October 7,2009 entry I wrote about Sunoco cosing their Eagle Point refinery in Westville, NJ. Today, in an obscure article in the Wall Street Journal, Valero announced they will close their 210,000 barrel-a-day Delaware City, Delaware refinery since it is costing a million a day to run. This will put 550 high paid union workers out of work.
More refineries are likely to close. The recession has dampened demand for refined products. So, we will adjust our imported fuels and domestic refined fuels to meet demand at a recession level.
What happens when the economy recovers? We will be more dependent on imports for fuels. Gasoline, heating oil, and jet fuel. Who will sell us the fuel? Not, China since they are building new refineries.
Does any politician care? Haven’t heard any say they are worried.
Is there any good news in these closings? One tiny bit. Both refineries are on the East Coast. The place that gives us Obama and the politicians and voters who believe we can run our economy on wind. Wind from Washington, I guess. They will suffer the most. They will pay the higher prices first. They will learn that we can’t maintain our economy and standard of living without energy first.
But, we will all suffer some. Amnesia is an American sickness. It was less than two years ago when Bush was beating the drum for new refineries to built in America. Offering refiners and investors land on military bases. Gasoline was $4 a gallon, remember.
We lose more and more energy independence. We set up another issue to keep economic recovery from happening. But, we are focused on health care. Energy is on the back page.
We will pay dearly for this down the road. Just wait.
