Western Refining trimming New Mexico units

By OGJ editors
HOUSTON, Nov. 10
-- Western Refining Inc., El Paso, is consolidating operations of its two small refineries in New Mexico to reduce operating costs in a period of shrunken refining margins.

To be consolidated at Gallup are the 23,000 b/d refinery there and the 17,000 b/d facility at Bloomfield, which will be idled. Western said total crude throughput will not decline from recent combined levels, which in the first 9 months of this year averaged 25,560 b/d.

The company said the move will cut operating costs by about $25 million/year beginning in the first quarter of 2010.

The Gallup refinery’s processing capacities include 7,000 b/d of catalytic cracking, 8,000 b/d of catalytic reforming, 16,500 b/d of catalytic hydrotreating, 2,500 b/d of alkylation, and 5,000 b/d of isomerization.

Bloomfield’s capacities are 5,000 b/d of catalytic cracking, 5,100 b/d of catalytic reforming, 8,300 b/d of catalytic hydrotreating, and 2,000 b/d of polymerization.

The refineries, about 95 miles apart, process mainly light sweet crude and natural gas liquids produced nearby. Western owns more than 250 miles of crude gathering lines.

“The company is evaluating alternative uses for the Bloomfield refinery, including the possibility of biofuels production,” Western said in a press statement.

Western also operates a 128,000 b/d refinery in El Paso and a 70,000 b/d refinery in Yorktown, Va.

Citing the margin squeeze and low differentials between heavy and sour crude, the company reported a third-quarter loss of $4.8 million, compared to a profit of $109.2 million for the same period last year.

Related Articles

Kuwait lets contract for grassroots Al-Zour refinery

08/27/2015 Kuwait National Petroleum Co. (KNPC) has let a fifth contract package to a joint venture of Italy’s Saipem SPA and India’s Essar Projects Ltd. for ...

North Sea Midstream buys gas assets from Total for $905 million

08/27/2015 North Sea Midstream Partners Ltd. (NSMP) has agreed to acquire 67% operated interest in the Shetland Island regional gas export system (SIRGE), 100...

Court approves ExxonMobil’s environmental settlement with New Jersey

08/26/2015 A New Jersey Superior Court judge approved a $225-million environmental settlement between the state and ExxonMobil Corp. to resolve environmental ...

Unipetrol: Litvinov ethylene plant restart likely to take months

08/26/2015 Unipetrol AS will not have a definite timeframe for restarting production at its Chempark Zaluzi petrochemical complex in Litvinov, Czech Republic,...

BP restarts crude unit at Whiting refinery

08/25/2015 BP PLC has restarted the largest of three crude distillation units (CDUs) at its 413,000-b/d refinery in Whiting, Ind., following the unit’s unplan...

Unit remains shuttered at Shell’s Pulau Bukom complex

08/25/2015 An investigation remains under way into a fire that broke out at an unidentified unit of Royal Dutch Shell PLC’s Pulau Bukom manufacturing site on ...

WoodMac: ‘Decade-long’ global gasoline surplus possible for refiners

08/24/2015 The global oil product market could experience a surplus of gasoline supply as early as 2017, according to the latest long-term oil product market ...

US House leaders press BP for answers on Whiting refinery outage

08/24/2015 Leaders in the US House of Representatives are demanding answers from BP PLC regarding the early August unplanned and still ongoing shutdown of a m...

Pennsylvania's governor issues crude-by-rail study he commissioned

08/24/2015 Pennsylvania Gov. Tom Wolf (D) issued a study he commissioned in late April of issues stemming from the growing number of crude oil shipments by ra...
White Papers

Definitive Guide to Cybersecurity for the Oil & Gas Industry

In the Oil and Gas industry, there is no single adversary and no single threat to the information tech...

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by
Available Webcasts

Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected