A Look in the Rear View, Part II

A Look in the Rear View, Part II

The oil and gas industry’s adaption of renewable energies quickened its pace in 2020 as producers, midstream operators, and refiners rolled out new initiatives and investments to power their operations and reduce emissions. Here’s a look at just a few. Houston-based Occidental, a longtime developer and investor of low-carbon technologies and fuels, announced this month it will design and build the world’s largest carbon capture facility in N.D. The company last Fall completed a 174-panel, 120-acre solar farm in the Permian, which now replaces all grid power and supplies all energy for Oxy’s Goldsmith oilfield operations. Tulsa-based midstream giant Williams in May announced it, too, would add solar to its natural gas transmission and processing operations in nine states. But oil refiners, in particular, have been left with little choice to accelerate their shift from fossil fuels to renewable sources. The fallout from COVID and ever-stringent emissions regulations have prompted the largest to the smallest refineries to convert feedstocks to biofuels, such as soybean oil, fats, and kitchen grease. Time to: adapt, re-think, survive.

What do you think? Learn more about our upstream, midstream, and downstream expertise at www.ReeseEnergyConsulting.com.

 

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Maybe Grease Really Is ‘The Word’

Maybe Grease Really Is ‘The Word’

The next time you order a burger and fries, you just might help a refinery reduce emissions. At least four refiners this year have stepped forward with plans to convert their existing facilities from diesel produced from crude, to renewable diesel produced from cooking oil.

Phillips 66, Marathon, CVR Energy, and HollyFrontier have ramped up their projects amid the slowdown in gasoline demand. Phillips 66 in August announced plans to repurpose its refinery in Rodeo, Calif., to produce 100% renewable fuels from oils, fats, and greases. Retooling is expected to take 18-20 months. Once operational, Rodeo Renewed will produce more than 800 million gallons a year, making it the largest plant of its kind in the world. Acquiring enough greasy supplies for use as feedstock, however, could pose its own challenges. Curiously, the U.S. doesn’t produce enough. Getting ahead of the demand, Valero has inked a deal for fats and used cooking oil with Darling Ingredients, which collects and converts animal-based products across the globe. So, the next time you hear “Fries with that?” yep, you know what to say.

What do you think? Learn more about Reese Energy Consulting at www.ReeseEnergyConsulting.com.

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