Oklahoma is Getting a New Oil & Gas Refinery
I feel like we just talked about this, but the cost difference between expanding old refineries vs building new refineries has been so one-sided, America hasn't built any new major crude oil refineries in the last few decades. There have been a handful of specialty-product and low-output facilities, but nothing on this scale.
In a total shocker, one oil and gas company just announced their plan to build a new crude refinery in Cushing, Oklahoma--AKA--the 'Pipeline Crossroads of the World.'
It's also going to be huge with a capacity to refine 250,000 barrels of crude per day. That equates to a little over 3.8 billion gallons of finished fuel products each year, and they're doubling down on the promise of clean energy.
Texas-based Southern Rock Energy Partners say that the refinery will better utilize hydrogen and oxygen as a fuel source to run the plant, eliminating up to 95% of the typical emissions refineries produce.
Cushing officials can't contain their excitement since it will bring in new jobs and families to further populate the small town. At this point in planning, it means 425-ish new jobs with an average pay rate of $93k per year.
Why Cushing, Oklahoma?
Well, Cushing is the oil & gas center of America. It's hard to comprehend how much of America's oil and gas flows through this town on a daily basis. Cushing is also one of the largest oil-storage places in the world. Just look at how massive the 'tank farm' is from Google Maps.
It's a big win for Oklahoma and America, but it's unclear if this will provide benefits at the pump in the form of lower prices. The refinery won't come online until at least 2027, and there's no guarantee they'll even make it to that point. That's just the boom & bust nature of the oil industry.