Post by Logan on Jun 28, 2016 23:44:39 GMT -6
HOUSTON -- A refinery west of Dickinson, N.D., that was the first to be built in the United States since the 1970s has been sold at a loss, with profit elusive since it opened last year, as low oil prices took a toll on the region's energy industry, crimping the appetite for diesel.
The sale to Tesoro Corp., which owns the only other refinery in the state, makes it unlikely another refinery will be built in the United States in the near future, despite the glut of cheap crude due to shale oil production.
Beyond North Dakota, the refinery business in the past year has been hammered by growing fuel inventories, turning a typical advantage -- cheap oil -- on its head.
MDU Resources Group and Calumet Specialty Product Partners, which were equal partners, broke ground on the refinery in 2013, with executives eager to supply diesel to the trucks, drilling rigs and other equipment powering an oil boom North Dakota was then experiencing.
Read more: www.inforum.com/business/4063770-nds-newest-refinery-sold-loss-most-jobs-remain
The sale to Tesoro Corp., which owns the only other refinery in the state, makes it unlikely another refinery will be built in the United States in the near future, despite the glut of cheap crude due to shale oil production.
Beyond North Dakota, the refinery business in the past year has been hammered by growing fuel inventories, turning a typical advantage -- cheap oil -- on its head.
MDU Resources Group and Calumet Specialty Product Partners, which were equal partners, broke ground on the refinery in 2013, with executives eager to supply diesel to the trucks, drilling rigs and other equipment powering an oil boom North Dakota was then experiencing.
Read more: www.inforum.com/business/4063770-nds-newest-refinery-sold-loss-most-jobs-remain