Oil Refining Merger: Marathon Petroleum to Buy Andeavor

Bloomberg News is reporting today that Marathon Petroleum Corp has agreed to buy US refining company Andeavor in a $23.3 billion deal making Marathon the biggest independent refining company in the United States.

https://www.bloomberg.com/news/articles/2018-04-30/marathon-to-buy-andeavor-in-23-3-billion-u-s-oil-refining-deal

The main reason for bringing this up here is there is connection between Andeavor and Andrea Rossi. William S. Hurley, a senior engineer at Andeavor, was with Rossi at the Stockholm E-Cat QX demonstration. Alan Smith reported that when he asked Mr. Hurley what his interest was in the E-Cat, he replied it was because they used a lot of heat in the refining business.

We don’t know how closely associated Rossi is with Andeavor, but there is clearly at least some knowledge about the E-Cat at the company, and it would be interesting to know if there was any discussion of the potential of the E-Cat in the talks that led up to this purchase. We’ll probably never find out, but if the E-Cat does hit the market, we could well see the oil refining industry taking advantage of it as a means of cutting costs.

  • causal observer

    Plenty of profitable years left; and maybe the price is down.

  • sam
  • LilyLover

    Shortly, selling the nector of Earth will be considered immoral. If we only need a limited capacity to refine the synthetics, it better be you than your competitor. Gobble’em up. Be the biggest. Charge a ton more for candles. Why not?

    When ECats bring prosperity, we’ll see the price variation in candles (etc.) much like we see in wines – commodity at Trader Joe to rarity to brag about.

    Early monopolist corners the market!

  • Warthog

    Given the reality of the E-cat or comparable competitive technology, I suspect we will need NO fossil oil. With the availability of cheap energy, it will be possible to convert cities solid waste into oil (your typical garbage truck load contains a LOT of carbon). Remember, that is pretty much what Rossi’s first business venture did (PetrolDragon IIRC).

    • Omega Z

      It will take decades to transition. Also, Oil, gas and coal supply chemical feed stocks for over 8000 (non fuel) products that we use and depend on everyday.

      Note I’m 100% in favor of recycling and I think LENR will make it all possible as the cost of energy is a major issue on this process. We can also process all human and animal excrement for fertilizer. But we will still need the fossil sources.

      • Warthog

        I worked in the petrochemical industry for 20 years in South Louisiana for one of the largest “pure” petrochemical production companies in the US (i.e. oil and gas products for transportation were not part of the company’s portfolio).

        At that time, the paradigm was that oil and gas would run out “soon” (prime “Peak Oil” years), and the company was doing full-bore research to switch to coal as feedstock for chemical production.

        As soon as the natural gas supply began to increase due to fracking, they dropped ALL such efforts like a hot potato. The meme that oil and coal supply significant feedstock supply for petrochemical product processes simply is not true. THE feedstock of choice is natural gas. Any usage of oil/coal is a minute fraction of that supplied by gas.

        What will likely drive the conversion is the need to somehow safely and economically get rid of solid waste in urban areas.

        • Omega Z

          Petroleum, is much more diverse and complex then natural gas and provides a greater variety of chemicals.

          ->”Any usage of oil/coal is a minute fraction of that supplied by gas.”

          Only around 65% of oil goes to transportation fuel. The rest is used in 1000’s of other products. In fact, a portion of natural gas is also stripped from crude oil as a by product. Natural gas is also extracted from coal as well. Should also note that unless they find a way to safely extract methane hydrate, natural gas will last only a few decades longer the oil.

          In addition, Natural gas goes through very similar cracking processes as oil to break it down for chemical stocks going through temperature and pressure variations.

  • sam
    • Omega Z

      Small U.S. oil companies claim to have developed the technology to eliminate most of the oil sands problems. It doesn’t even require the removal of materials from the oil sand field. However, they aren’t saying how that would be done. It is a proprietary clean technology that they aren’t ready to reveal.

  • Omega Z

    And that Mark, is why some have more then others. They know things that you don’t.

    Big Oil knows the days of oil are coming to an end. It’s coming regardless if we build electric vehicles, LENR vehicles or something else. Any alternative to gasoline will take decades to transition.

    They project that there will be 50 million EV’s on the road by 2050. Even if we double that projection to 100 million, that leaves about a billion ICE vehicles that will still need gasoline. However, by 2060, nearly all the worlds economically viable oil reserves will be depleted.

    • It’s difficult to know how to respond to what you posted. Is this supposed to be a defense of Big Oil? A criticism of Big Oil? Even if everything that you posted is correct, it doesn’t really change anything that I posted, as far as I can see. They ARE selling out their own future just to make a buck. The statement in my original post was not wrong…

      • Omega Z

        Just pointing out that Big Oil, gas and coal are not going anywhere.
        ->”The man is seriously considering buying, and helping along, a technology ……”

        Those who resist new technology fall by the wayside. The smart man embraces the new technology and morphs along with it. Perhaps you will purchase new Marathon products in the future. I believe once upon a time, IBM was all about typewriters and such.

        We wont run out of oil. We’ll run out of economically viable oil. Extracting and processing oil is energy intensive. E-cats will make it cheaper and very likely increase the oil we can viably extract. We will need oil long after we no longer need it for fuel. Oil, gas and coal supply nearly all the chemical feed stocks of over 8000 (non fuel) products we use and depend on everyday. All energy intensive to process.

    • cashmemorz

      Cheap energy, like LENR, will allow even some of that harder to get oil to be gettable and make it not so depleted. Is that how oil capiltalists think? Then it will move the 2060 date a little further off, like 2070+

      • Omega Z

        It is how any consumer product producer thinks. They can more easily provide you with an affordable product. As to whether this will extend the period of time before it’s economically depleted is unknown.

        When OPEC decided to restrict oil production to consumer demand levels, Demand was 92.5 million barrels a day. I said then that by 2020 we would be using 100 million barrels a day. All while other were saying the increased production of EV’s would keep that from happening.

        They were wrong. So was I. By the end of this year, 2018, demand will reach 100.5 million barrels a day. With demand still increasing, It’s very possible that by 2020 we will be using 105 million barrels a day. However, we do not live in a static world. Everything is haws potential to change.

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