RIN-sanity Returns

26 Jan 2018; Last weekend, Philadelphia Energy Solutions (PES), the largest oil refinery on the U.S. East Coast, filed for Chapter 11 bankruptcy protection.  PES operates two domestic refineries in Philadelphia with a combined processing capacity of 335,000 barrels per day (b/d).  The refinery complex can trace its roots back to 1866, one year after the end of the Civil War, when Atlantic Petroleum Company established its operation at Point Breeze.  Atlantic installed its first petroleum refining units in 1870 and changed its name to Atlantic Refining Company.  In 2012, PES emerged from a joint venture between private equity firm The Carlyle Group LP and Sunoco Inc., which was bought that year by Energy Transfer Partners LP.  What caused the problems at the refiner?  PES has pointed to the cost associated with the Renewable Fuel Standard (RFS) as a key driver for its financial troubles.   According to PES, the independent refiner spent more than $800 million on Renewable Identification Numbers (RINs) since 2012 to comply with the RFS.  What is the background of this government program and why is it so controversial? Please fill out the form to read the article.
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