A MARKET UPDATE for May, 2012

Contact:

The Chemical Company
P.O. Box 436
44 Southwest Ave.
Jamestown, RI 02835
Phone: (401) 360-2800
Website: thechemco.com
Email: Info@thechemco.com

 Special Message:

Recently Delta Airlines entered into an agreement to buy the 185,000 barrel per day ConocoPhillips refinery in Trainer, PA.

Trainer, PA and the soon to be “Delta Airline Refinery” (Actually bought by their subsidiary Monroe Energy) lies just South of Philadelphia roughly half way between Philadelphia and Wilmington. More importantly it is front and center on the Delaware River. Access to offshore crude feeds the refinery where Delta intends to make as much Jet Fuel as possible and the rest will become gasoline. BP has agreed to take this gasoline and market it in exchange for jet fuel in other parts of the country.

Wow! For the price of a new wide body jumbo jet, Delta is now integrated into their most crippling cost factor. Assistance from the state of Pennsylvania made up around 20% of the $180 Million purchase price. What a deal! Or is it? CONTINUE READING “A MARKET UPDATE FOR MAY, 2012”

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