What airline owns an oil refinery?
Delta
Register now for FREE unlimited access to Reuters.com The issue looms large for Delta because it owns the 185,000 barrel-per-day Monroe Energy refinery in Trainer, Pennsylvania, a facility it has tried but failed to sell in recent years.
Does Delta still own an oil refinery?
The Trainer Refinery is owned by Monroe Energy, LLC, a subsidiary of Delta Air Lines. Monroe Energy acquired the facility in June 2012. Since that time, the company has focused on producing high-quality transportation fuels at the refinery….Trainer Refinery.
| Refinery details | |
|---|---|
| Owner(s) | Delta Air Lines |
| Capacity | 185,000 bbl/d (29,400 m3/d) |
Does United Airlines own a refinery?
United Airlines (NASDAQ:UAL) owns its own refinery as opposed to some peers that hedge or just buy jet fuel at spot prices. Analysts have also warned that European travel demand could be lower in the summer due to macro factors and the war headlines, which would impact UAL.
Where does Delta get their fuel?
Through direct production and exchange agreements, Monroe provides Delta with approximately 80 percent of its domestic jet fuel needs. Monroe Energy is more than just an energy company. We are also a good community partner.
Who refines jet fuel?
The top five U.S. refiners by jet fuel production are Exxon Mobil, Chevron, BP, Valero, and Marathon Petroleum Group, which together account for roughly 50% of total U.S. jet fuel production (Figure 2). In many cases, the energy company refines jet fuel from crude oil and distributes the jet fuel to consumers.
When did Delta buy an oil refinery?
June 2012
Delta purchases an oil refinery In June 2012, Delta Air Lines’ wholly-owned subsidiary, Monroe Energy, acquired an oil refinery in Pennsylvania called the Trainer Refinery. The acquisition cost Monroe Energy $180 million.
Which airline owns an oil company?
The rising cost of fuel is a concern for Delta Air Lines, but the Atlanta-based carrier enjoys a benefit few other airlines in the world can claim: Its own oil refinery.
Why did Delta buy an oil refinery?
At the time, Delta believed that it was an excellent time to acquire the refinery. It cited the rising global demand for jet fuel and related products alongside the slipping capacity for jet fuel refining in the United States. So, Delta thought it was a great way to reduce the cost of jet fuel.
Who supplies United Airlines fuel?
In September 2021, United agreed to purchase 1.5 billion gallons of SAF paired with an investment in Alder Fuels – enough to fly more than 57 million passengers. United is also an investor in Fulcrum BioEnergy, where United has an option to purchase up to 900 million gallons of SAF.
Does Delta Air Lines hedge fuel?
The company doesn’t hedge its fuel, which means that it is exposed to the volatility of the market and as a result higher fuel prices mean lower profits. The expectations for profitability in 2022 have been reset.
Does Russia make aviation fuel?
Russia produces and consumes a lot of Jet A1 aviation fuel, also known as kerosene. Since 2017, it has been exporting it too. Nevertheless, most fuel is consumed inside the country. Around 75% of the market belongs to the 3 largest manufacturers.
How much oil is drilled in Alaska?
The Arctic Alaska (onshore) province is endowed with original oil reserves of 16.4 billion barrels and a discovered total of 70 billion barrels of oil in place. The Arctic Alaska (onshore) province produces about 1.5 million barrels per day and accounts for nearly 25 percent of all current U.S. daily oil production.
Who makes sustainable aviation fuel?
World Energy is a major SAF supplier in the US. The company, which has been a leader in the production and distribution of low-carbon fuels for more than two decades and operates the world’s first and America’s only commercial-scale SAF production facility, plans to produce 150 million gallons of SAF per year by 2024.
What is SAF fuel?
SAF is a biofuel used to power aircraft that has similar properties to conventional jet fuel but with a smaller carbon footprint. Depending on the feedstock and technologies used to produce it, SAF can reduce life cycle GHG emissions dramatically compared to conventional jet fuel.
Which airlines have fuel hedges?
Hedging levels across European airlines IAG, the parent company of Iberia, British Airways, Vueling, and Aer Lingus, is partially hedged for the next two years, with 60% of its jet fuel consumption this year covered. Likewise, easyJet has 60% of its fuel costs hedged through to September 30, 2022.
Does United Airlines hedge fuel?
United’s “current strategy is to not enter into financial transactions to hedge the market price exposure of its expected fuel consumption, although the Company regularly reviews its strategy based on market conditions and other factors,” it said in its annual report last month.
What country does jet fuel come from?
The United States of America is the top country by output of jet fuel in the world. As of March 2022, output of jet fuel in the United States of America was 1,416 thousand barrels per day. The top 5 countries also includes Republic of Korea, India, Japan, and Netherlands.
How much is a Litre of jet fuel?
$2.46 (US dollars) per Gallon. 1 litre = 0.65 pence (pound sterling)
Why does Delta Air Lines have an oil refinery?
The rising cost of fuel is a concern for Delta Air Lines, but the Atlanta-based carrier enjoys a benefit few other airlines in the world can claim: Its own oil refinery. Delta will see a benefit of 20 cents per gallon of jet fuel from its refinery, which acts as a hedge against the spike in fuel.
Does Delta own an oil refinery in Pennsylvania?
In June 2012, Delta Air Lines’ wholly-owned subsidiary, Monroe Energy, acquired an oil refinery in Pennsylvania called the Trainer Refinery. The acquisition cost Monroe Energy $180 million.
What’s going on with Delta’s Trainer Refinery?
The Trainer refinery has had a mixed track record under Delta’s ownership. Changes in the structure of the oil market and rising environmental compliance costs have made the refinery less profitable than the airline had projected. (Back in 2012, Delta said the refinery would earn $300 million annually.
Is it hard to run an oil refinery?
Running an oil refinery is never an easy task. For one, like an airline, refineries are subject to shocks in the market. Since Delta acquired the refinery, fuel prices have gone down.