Analysts Are Paid For This: Shutting Down Half of Region's Refineries Might Impact Availability of Products -- But There Is Still Some Great Information -- Thanks To a Reader

Link here.

I can't make this stuff up.

The government says this could result in an impact:

Reduced refining activity in the US Northeast, as reflected in recently announced plans to idle more than half of the region's refining capacity, is likely to affect product supplies, the US Energy Information Administration said. "The transition period as supply sources shift could be problematic for ultralow-sulfur diesel [fuel], gasoline, and jet fuel supplies," it said in a Dec. 23 analysis. Prolonged uncertainty in the coming months over disposition and operation of pipelines, ports, storage facilities, and other important logistical assets may compound adjustment challenges, it continued. Prices could grow more volatile because of reduced short-term product flexibility due...

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However, for free, thanks to an "anonymous" reader who sent me the link to the entire EIA document, this is a bit more information:

Three southeastern Pennsylvania refineries that comprise over 50% of the total refining capacity in the Northeast (Central Atlantic and New England States)  have recently been proposed for sale.

Two of these refineries have already been idled. In early September 2011, Sunoco announced plans to sell its refineries located in Philadelphia and Marcus Hook, Pennsylvania, with the intent of exiting the refinery business by mid-2012.

Later that month, ConocoPhillips announced its intention to idle its Trainer refinery pending its sale, along with the associated pipelines and terminals.

On December 1, Sunoco announced the immediate idling of the Marcus Hook refinery.

Northeast refiners, in general, supply a diminishing market share of products in their own region. The balance of product supplies are either imported or moved into the region via pipeline from the Gulf Refineries on the East Coast mainly serve the Northeast, supplying approximately 40% of Northeast gasoline sales and 60% of distillate sales in 2010. About half of this supply came from the three refineries expected to be offline.

In 2010, the three refineries at issue combined to produce 315,000 bbl/d of gasoline, 194,000 bbl/d of distillate and 41,000 bbl/d of jet fuel. Distillate volumes produced included 143,000 bbl/d of ULSD mainly for on road use and 51,000 bbl/d of higher sulfur distillate that is primarily sold as heating oil.

Production losses from the Trainer facility idling were offset, at least in some measure, by the return to full operations in October 2011 of the Delaware City, DE refinery, which had been idled since late 2009. The idling in December of the Marcus Hook refinery removed 15% of the operating Northeast refining capacity.

For the full PDF report:
http://media.philly.com/documents/Reduction_in_Northeast_Refining_Activity.pdf