Refinery expansion, pipeline to be good for area

By Scott Cousins
Granite City Press-Record
Sunday, October 19, 2008

Rotary talk centers on energy, oil

A multi-billion dollar expansion of ConocoPhillips' Wood River Refinery will be a major benefit for the entire region, according to a company official speaking in Granite City Wednesday.

Tim Peterson, manager of technical services at the plant, was the speaker at this month's Granite City Rotary Action Prayer Breakfast.

Although the formal presentation was about energy security and climate change, much of the group's interest centered on the development.

The company recently received the final environmental permits for a $3 billion expansion coupled with the construction of a pipeline from Alberta, Canada, to deliver oil for processing.

He said the pipeline is expected to be finished in 2010, with the refinery expansion coming on line in 2011.

The refinery, originally built in 1917, is the 10th largest in the U.S., according to Peterson.

It processes about 300,000 barrels of oil per day. Of that, 160,000 barrels is turned into gasoline, 90,000 into diesel or jet fuel, and the remainder into asphalt and other petroleum products.

When completed, the expansion will allow the refinery to produce an addition 70,000 barrels of crude oil per day.

In addition, the expansion will double the amount of heavy crude oil the refinery is able to process.

The oil coming from Albert is primarily heavy crude oil.

"You need some special facilities in your plant (to process the heavier oil)," Peterson said.

The refinery expansion and construction of the pipeline will employ between 2,000-3,000 workers in this area, and when completed will add between 50-100 permanent jobs in the refinery.

"It's a great project for the (economic) security of the refinery," he said.

In talking about the general subject of oil, gasoline and the environment, he said there are "significant challenges" in producing energy and dealing with climate and environmental issues.

"They're very interrelated," he said. "You can't solve one without the other."

Peterson noted that current projections call for energy use to 25 percent over the next 20 years or so, and that oil, natural gas and coal will provide about 80 percent of U.S. energy at least through 2030.

For future energy demands, he said there needs to be energy diversity, including ethanol, nuclear and other sources.

"We basically need it all to keep up with the demand," he said.

There also needs to be an increased emphasis on energy efficiency, along with a concern for the environment