23 July 2014, Lagos – Delta Air Lines Incorporated (DAL), the largest United States carrier by market value, is trying to cash in on the biggest oil boom in the nation’s history by bringing more domestic crude to its refinery near Philadelphia.
The Atlanta-based airline signed a five-year agreement with Addison, Texas-based midstream company Bridger LLC to supply the Trainer, Pennsylvania, refinery with 65,000 barrels of crude a day, more than a third of the plant’s capacity.
Delta is hoping that greater use of domestic crude will help it turn a profit at the refinery, which it bought from ConocoPhillips in 2012 in an attempt to control prices and supplies for its fleet. U.S. crude production has risen 55 percent since the start of 2010, making prices cheaper than in the rest of the world.
“We definitely believe domestic crude will be competitive versus foreign alternatives,” Graeme Burnett, Delta’s senior vice president for fuel optimisation, said by phone July 18. “We want to push the levels of domestic crude as high as we can.”
Trainer is 100 miles (160 kilometers) from New York Harbor, the delivery point for gasoline and diesel futures on the New York Mercantile Exchange. Delta imported about 140,000 barrels of crude a day to feed the plant in April, mostly from Nigeria and Norway.