Analysts say Sunoco to sell Tulsa refinery

[TURobY]

http://www.reuters.com/article/mergersNews/idUSN0751191420071107

quote: NEW YORK, Nov 7 (Reuters) - Sunoco Inc was said to be looking for buyers for its 85,000 barrel per day refinery in Tulsa, Oklahoma, analysts said Wednesday.

"It is better to sell. A lot of financial players are interested in physical assets," said Fadel Gheit, an oil analyst with Oppenheimer.

Gheit said the Tulsa refinery is a stand-alone refinery for Sunoco, which also has refineries in Pennsylvania, New Jersey and Ohio.

"It's not really a sophisticated refinery," Gheit added.

A spokesman for Sunoco said the company does not comment on rumors.

"We continue to operate the Tulsa refinery to the highest standards," said the spokesman, Gerry Davis.

During an earnings conference call on Tuesday, a spokesman for another independent refiner said in response to a question about whether they would be seeking acquisitions during a conference call the refinery would be on the block.

"I think we recently heard that Sun would be marketing their Tulsa plant," said Matthew Clifton, chairman of the board and chief executive of Holly Corp.

Not confirmed, but interesting nonetheless.

[YoungTulsan]

Come on Kaiser, buy it and level it!

[cannon_fodder]

Wow, not interested in the 1,000 or so high paying jobs and additional contractor jobs associated with the facility?  Not to mention the spin off industries that support our oil infrastructure.  I guess Tulsa has plenty of other booming industries right now and can afford to lose several thousand good paying jobs.

Not to mention, $1.5 Billion+ is a lot of money, even for Kaiser.  I'd be willing to bet the environmental cleanup would exceed $100,000,000 to make the land viable for any other use again.

I know you were saying it in jest, but beware of what you wish for.  An exodus of refineries from Tulsa would toll the death bell for what remains of the oil industry.

[YoungTulsan]

quote:Originally posted by cannon_fodder

Wow, not interested in the 1,000 or so high paying jobs and additional contractor jobs associated with the facility?  Not to mention the spin off industries that support our oil infrastructure.  I guess Tulsa has plenty of other booming industries right now and can afford to lose several thousand good paying jobs.

Not to mention, $1.5 Billion+ is a lot of money, even for Kaiser.  I'd be willing to bet the environmental cleanup would exceed $100,000,000 to make the land viable for any other use again.

I know you were saying it in jest, but beware of what you wish for.  An exodus of refineries from Tulsa would toll the death bell for what remains of the oil industry.

It was the first thing that came to my mind, sorry!

However, Sinclair is undergoing a huge expansion  to the extent that you KNOW it will be permanent for at LEAST several more decades.  So if you evened it out, with an efficient modernized cleaner Sinclair, Sun wouldn't be AS big of a loss.  Now imagine 3 square miles of prime real estate.

Sinclair is spending $1 billion to modernize their refinery.  Assuming Sun hasn't been brought up to modern standards (Which it may be, I dont pretend to know everything about the operation) What would it cost to modernize Sun's?  1.5 billion? Who is going to buy it for 1.5 billion knowing they need to spend another 1.5 billion to not be viewed as the local scumbag pollution king?

[Rico]

Do you suppose the Execs. at Sun Oil, slept a little bit better, when the "River Tax" went down in flames....?

Start digging up next to the bank on their side of the river....No telling what you might uncover.?

Time to, ever so gently, place the artifact on the market....
Right next to the spent uranium fuel rods...



[}:)]

[YoungTulsan]

That "Least Tern refuge" probably has Jimmy Hoffa in it.

[Conan71]

Somewhere back in the early 1990's I recall reading that Sunoco decided to keep operating the refinery because remediation costs would be astronomical.  I believe that was when they quit making the 93.5 octane fuel and I think gasoline production was ceased for a time and they were producing only lubricants.  RM seems more up on the goings on at Sun than I am, but I do remember the comment about it being cheaper to keep it in operation than shuttering it.

Assuming from the comments that it is "not a very sophisticated refinery" I'll take that to mean that there's not likely much of a surplus value to the assets on site.

Hate on the refineries all you like, they helped build Tulsa and still feed the economy.

[TheArtist]

If it goes up for sale and someone buys it, perhaps they will add to it and or improve it  giving it more life and us more jobs.  


I find it interesting that the Tulsa area has seen a growth in manufacturing. I know some of that is related to the recent high oil prices and such and thus oil machinery etc., but not all. Despite the fact that the rest of the nation for a long time has seen a decrease in manufacturing, there are some heavy duty manufacturing industries here that have grown.

Just a feeling, but it seems to me that part of what has happened is that the manufacturing sector has experienced an evolution in which a lot of it indeed went overseas, but there are some areas and types of things that are just more economical to actually build here in the US or in Tulsa. Perhaps some things are "niche" manufacturing types that the Chinese businesses wont mess with because they arent high volume and also require more machinery than people. Plus large, bulky, few in number, items can be expensive to ship long distances.  We arent manufacturing little gadgets and toys, we are manufacturing huge heat exchangers and the like.

[FOTD]

quote:Originally posted by Conan71

Somewhere back in the early 1990's I recall reading that Sunoco decided to keep operating the refinery because remediation costs would be astronomical.  I believe that was when they quit making the 93.5 octane fuel and I think gasoline production was ceased for a time and they were producing only lubricants.  RM seems more up on the goings on at Sun than I am, but I do remember the comment about it being cheaper to keep it in operation than shuttering it.

Assuming from the comments that it is "not a very sophisticated refinery" I'll take that to mean that there's not likely much of a surplus value to the assets on site.

Hate on the refineries all you like, they helped build Tulsa and still feed the economy.

who cares....it's not always about money.

[RecycleMichael]

There is a small group of us who meet with Sunoco a number of times a year to discuss their operations. It is mostly politicians, westside leaders, energy experts and one oversized egomaniacal environmentalist.

They are very open to discuss their emissions, odors, impacts on the area, etc. We have complete access to their top people and they listen to us. They are a big employer and want to always be part of the community.

I yell at them constantly about environmental stuff and I really have seen them try to be as green as possible. It is a nasty business, but they really are doing well in the decade I have been working with them.

[YoungTulsan]

quote:Originally posted by recyclemichael

There is a small group of us who meet with Sunoco a number of times a year to discuss their operations. It is mostly politicians, westside leaders, energy experts and one oversized egomaniacal environmentalist.

They are very open to discuss their emissions, odors, impacts on the area, etc. We have complete access to their top people and they listen to us. They are a big employer and want to always be part of the community.

I yell at them constantly about environmental stuff and I really have seen them try to be as green as possible. It is a nasty business, but they really are doing well in the decade I have been working with them.

Good to know, I'll tell Kaiser I was just kidding then

[Conan71]

quote:Originally posted by FOTD

quote:Originally posted by Conan71

Somewhere back in the early 1990's I recall reading that Sunoco decided to keep operating the refinery because remediation costs would be astronomical.  I believe that was when they quit making the 93.5 octane fuel and I think gasoline production was ceased for a time and they were producing only lubricants.  RM seems more up on the goings on at Sun than I am, but I do remember the comment about it being cheaper to keep it in operation than shuttering it.

Assuming from the comments that it is "not a very sophisticated refinery" I'll take that to mean that there's not likely much of a surplus value to the assets on site.

Hate on the refineries all you like, they helped build Tulsa and still feed the economy.

who cares....it's not always about money.

Funny coming from you... seems like you sure had a lot of inside info on the PGA and Southern Hills.  I'm betting you don't know what it is to not have money.  Probably born with a silver spoon up your....

[inteller]

quote:Originally posted by TheArtist

If it goes up for sale and someone buys it, perhaps they will add to it and or improve it  giving it more life and us more jobs.  


I find it interesting that the Tulsa area has seen a growth in manufacturing. I know some of that is related to the recent high oil prices and such and thus oil machinery etc., but not all. Despite the fact that the rest of the nation for a long time has seen a decrease in manufacturing, there are some heavy duty manufacturing industries here that have grown.

Just a feeling, but it seems to me that part of what has happened is that the manufacturing sector has experienced an evolution in which a lot of it indeed went overseas, but there are some areas and types of things that are just more economical to actually build here in the US or in Tulsa. Perhaps some things are "niche" manufacturing types that the Chinese businesses wont mess with because they arent high volume and also require more machinery than people. Plus large, bulky, few in number, items can be expensive to ship long distances.  We arent manufacturing little gadgets and toys, we are manufacturing huge heat exchangers and the like.

the reason tulsa has seen growth in manufacturing is because a huge portion of smart people left, leaving us with an overabundance of grunts to do menial manufacturing labor.  it is no surprise.  when all the high paying telecom and energy sector jobs go away, you have to give what's left SOMETHING to do besides cooking meth and gangbanging.

[YoungTulsan]

quote:Originally posted by inteller

quote:Originally posted by TheArtist

If it goes up for sale and someone buys it, perhaps they will add to it and or improve it  giving it more life and us more jobs.  


I find it interesting that the Tulsa area has seen a growth in manufacturing. I know some of that is related to the recent high oil prices and such and thus oil machinery etc., but not all. Despite the fact that the rest of the nation for a long time has seen a decrease in manufacturing, there are some heavy duty manufacturing industries here that have grown.

Just a feeling, but it seems to me that part of what has happened is that the manufacturing sector has experienced an evolution in which a lot of it indeed went overseas, but there are some areas and types of things that are just more economical to actually build here in the US or in Tulsa. Perhaps some things are "niche" manufacturing types that the Chinese businesses wont mess with because they arent high volume and also require more machinery than people. Plus large, bulky, few in number, items can be expensive to ship long distances.  We arent manufacturing little gadgets and toys, we are manufacturing huge heat exchangers and the like.

the reason tulsa has seen growth in manufacturing is because a huge portion of smart people left, leaving us with an overabundance of grunts to do menial manufacturing labor.  it is no surprise.  when all the high paying telecom and energy sector jobs go away, you have to give what's left SOMETHING to do besides cooking meth and gangbanging.

I would call it a happy medium.  We have oil manufacturing jobs, we have aerospace suppliers, we have the Port of Catoosa.  These things are actually viable reasons why we have an upper hand in getting manufacturing jobs.

We also have a cheap cost of living, and pretty low wages here.  So in essence, you can pay people around here so little, we are a viable alternative to building a plant in Mexico.  Hooray us!

And the telecom people have either left or found work in a different field.  They are not cooking meth and gangbanging.  Getting some good manufacturing jobs into our area might help some people rise up from a life of cooking meth and gangbanging.  The college educated crowd and the menial labor crowd are two seperate groups of people.  More jobs for the menial labor crowd do not HURT.  While you may wish for better, you can't just poo poo on any job that isn't $75,000+ Salary white collar goodness.

The college educated bunch are resourceful enough, they will find something to do (even if it means move away).  The "uneducated" don't tend to have that mobility, so if they DON'T have jobs they are still "our problem".  Better that they have decent paying jobs and can support themselves, than not.

We should be glad manufacturing is coming to Tulsa, because it in NO WAY effects the college talent pool, it only HELPS those below college education.

[Breadburner]

quote:Originally posted by Conan71

quote:Originally posted by FOTD

quote:Originally posted by Conan71

Somewhere back in the early 1990's I recall reading that Sunoco decided to keep operating the refinery because remediation costs would be astronomical.  I believe that was when they quit making the 93.5 octane fuel and I think gasoline production was ceased for a time and they were producing only lubricants.  RM seems more up on the goings on at Sun than I am, but I do remember the comment about it being cheaper to keep it in operation than shuttering it.

Assuming from the comments that it is "not a very sophisticated refinery" I'll take that to mean that there's not likely much of a surplus value to the assets on site.

Hate on the refineries all you like, they helped build Tulsa and still feed the economy.

who cares....it's not always about money.

Funny coming from you... seems like you sure had a lot of inside info on the PGA and Southern Hills.  I'm betting you don't know what it is to not have money.  Probably born with a silver spoon up your....

No he just likes to steal it......Can you say slum lord....