-A Reuters piece examines major oil companies’ enduring commitment to the refining business, which has held firm despite sporadic sales of individual plants and decreased oil processing rates. It was once thought that a slew of multinationals would follow the example of ConocoPhillips, Marathon and Hess by splitting their upstream and downstream units, but it hasn’t happened. BP’s downstream chief Iain Conn says downstream assets can create favorable cash flows and help major oil companies develop emerging markets.
-LyondellBasell pulled out of negotiations to sell its Berre refinery near Marseilles, France, to a Monaco-based trading company. Via Reuters, LyondellBasell ended talks due to the prospective buyer’s failure to guarantee a restart of the refinery, which has been mothballed since January 2012. LyondellBasell put the refinery on the block in May 2011 and shut it down after it initially failed to find a buyer.
-The Alberta government on Tuesday said it would implement emissions standards to win support for its oil sector. Via Bloomberg, Alberta Environment Minister Robin Campbell said new climate change measures could also include a higher price on carbon and energy efficiency and renewable energy strategies. Alberta officials have in the past said the province would not consider placing emissions restrictions on its oil and gas industry until the U.S. did the same.
-Meanwhile, the U.S. government is offering up to $4 billion in loan guarantees for energy efficiency and renewable energy projects. The Department of Energy has identified five key areas of interest, including advanced grid integration and storage, drop-in biofuels, waste-to-energy, facility enhancement and efficiency improvements.
-Minnesota Power filed for permits with state and federal regulators for a 500-kilovolt-transmission project that would link Minnesota and Manitoba. Via Platts, the 220-mile project is projected to cost between $500 million and $650 million.
