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Old 04-10-2012, 08:54 PM
 
811 posts, read 1,317,565 times
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FAIRBANKS - Flint Hills Resources announced plans Tuesday to idle one of its two operating refinery units in North Pole, a move that will result in layoffs for roughly a quarter of its local employees.
In a news release, the company blamed the move on “challenging economics and rising crude prices.”The process of idling the No. 1 crude unit will lead to a gradual reduction of 35 to 40 workers at the refinery during the next five months.
Flint Hills has struggled with high costs at its North Pole location for years, saying the refinery’s dependence on crude oil as a power source puts the plant at a disadvantage against competitors who have access to cheaper natural gas. The refinery previously idled its No. 3 crude unit in 2010 as a cost-cutting measure.

Fairbanks Daily News-Miner - Flint Hills to shut down processing unit at North Pole refinery (http://newsminer.com/bookmark/18192199/article-Flint+Hills+to+shut+down+processing+unit+at+North+ Pole+refinery#.T4Tvvs_tE-A.facebook#ixzz1rhFp8eVR - broken link)
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Old 04-10-2012, 10:53 PM
 
Location: Anchorage
1,923 posts, read 4,715,110 times
Reputation: 871
Oh, that's not good.
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Old 04-11-2012, 03:25 AM
 
Location: Anchorage
4,061 posts, read 9,883,535 times
Reputation: 2351
First Alyeska moves their headquarters from Fairbanks to Anchorage, then the Air Force is planning to move that squadron to Anchorage and now this? Things are not looking rosy for Fairbanks.
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Old 04-12-2012, 06:04 AM
 
7 posts, read 9,528 times
Reputation: 10
http://vafq.org/fs/images/1.gif (broken link)
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Old 04-15-2012, 10:38 AM
 
Location: Not far from Fairbanks, AK
20,292 posts, read 37,174,791 times
Reputation: 16397
Default More on Flint Hills

Fairbanks Daily News-Miner - Decreased jet fuel sales a factor in Flint Hills refinery shutdown (http://www.newsminer.com/view/full_story/18244353/article-Decreased-jet-fuel-sales-a-factor-in-Flint-Hills-refinery-shutdown?instance=home_lead_story - broken link)
Quote:
The company news release said the North Pole refinery faces a competitive disadvantage.

Refining crude oil into useable product consumes large amounts of energy — measured in British Thermal Units, or Btu — and the cost of that energy helps determines the price the refined product is sold at.

Refineries that run on natural gas pay around $2 per million Btu, while Flint Hills pays $20 to $21 per million Btu because it does not have an inexpensive and ready supply of natural gas at the refinery and must instead burn oil, Cook said.

“It’s the result of the differential between natural gas prices and crude prices, particularly NS (North Slope) crude, which is trading at a premium,” Cook said in a subsequent interview.


Read more: Fairbanks Daily News-Miner - Decreased jet fuel sales a factor in Flint Hills refinery shutdown
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Old 04-15-2012, 12:11 PM
 
4,989 posts, read 10,020,530 times
Reputation: 3285
I know of at least one person who is no doubt overjoyed by all of this news.

You can contact him at 1600 Pennsylvania Ave.
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