Phila Refineries closure will cause shortfall in NE Energy

Here we go!

With gasoline, however, the Northeast would be short 160,000 barrels per day this year and 240,000 barrels per day next year if the refineries shut.

The Philadelphia media have been covering the closing of the last refineries in the Philadelphia region.No one else. An EPA report yesterday blandly tells us that we are in for a shortfall and dire effects. In an interview this morning with the Mayor of Eddystone, where one Sunoco refinery is located, he put the blame directly on the EPA. Sunoco has been mandated to install a $200 million dollar scrubber as well as other improvements to comply with new Regs. This is a well written piece by the Delaware County Times reporter, and I encourage everyone to read the whole thing to understand what our government is doing to us. Earlier I did a post on the U.S. refinery business and if time, check out Philadelphia Refineries coming to an end which included what they are doing elsewhere.

“It’s going to be an economic hit to our region,” he said of the closure of the ConocoPhillips Trainer and Sunoco Inc.’s Marcus Hook and Philadelphia refineries. “The question is: ‘What’s the scope of it and what’s the duration?’”

The U.S. Energy Information Administration warned of price spikes in its full analysis of the refinery closure impact released Monday and U.S. Rep. Patrick Meehan, R-7, of Upper Darby said questions it raises can be used during a congressional hearing in three weeks.

“A higher-price environment could persist for months, if not longer, until infrastructure changes can be made,” the report read. “Replacing lost volumes presents a challenge in terms of both logistics and alternate supply sources, but the challenge posed by logistics is significantly greater.”

With gasoline, however, the Northeast would be short 160,000 barrels per day this year and 240,000 barrels per day next year if the refineries shut.

Potential pipelines serving the region are at near capacity now and tankers would need Jones Act waivers to allow them to serve the region as the few with that designation are already contracted.

The EIA released the 27-page report entitled “Potential Impacts of Reductions in Refinery Activity on Northeast Petroleum Product Markets,” stating that price volatility would be linked more to delivery of supply than unavailability of product. EIA GOV Report

“A higher-price environment could persist for months, if not longer, until infrastructure changes can be made,” the report read. “Replacing lost volumes presents a challenge in terms of both logistics and alternate supply sources, but the challenge posed by logistics is significantly greater.” Full story at Delco Times

Obama to cut military benefits

Onward and upward by the administration’s effort to cut our military. I caught this on Mark Levin’s program last night. The end result is to push the military into Obamacare. Simply enough of this man attempting to destroy the morale of our brave men and women. Enough of courting the Federal unions by leaving them unaffected.

The Obama administration’s proposed defense budget calls for military families and retirees to pay sharply more for their healthcare, while leaving unionized civilian defense workers’ benefits untouched. The proposal is causing a major rift within the Pentagon, according to U.S. officials. Several congressional aides suggested the move is designed to increase the enrollment in Obamacare’s state-run insurance exchanges.

“Would you stay with a car insurance company that raised your premiums by 345 percent in five years? Probably not,” said the congressional aide. “Would anybody accept their taxes being raised 345 percent in five years? Probably not.”

Administration officials told Congress that one goal of the increased fees is to force military retirees to reduce their involvement in Tricare and eventually opt out of the program in favor of alternatives established by the 2010 Patient Protection and Affordable Care Act, aka Obamacare 

The disparity in treatment between civilian and uniformed personnel is causing a backlash within the military that could undermine recruitment and retention.

As part of the increased healthcare costs, the Pentagon also will impose an annual fee for a program called Tricare for Life, a new program that all military retirees automatically must join at age 65. Currently, to enroll in Tricare for Life, retirees pay the equivalent of a monthly Medicare premium. More from  Free Beacon

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