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Biden’s EPA Holds Up Major Oil Refinery Amid National Fuel Crisis

The Environmental Protection Agency (EPA) on Thursday announced that a large idled refinery in the U.S. Virgin Islands will remain shut down until it acquires a new Clean Air Act permit amid a national diesel shortage.

The St. Croix refinery, owned by West Indies Petroleum Limited and Port Hamilton Refining and Transportation, LLLC, has been shut down since June 2021 and will have to obtain a Prevention of Significant Deterioration permit which would require the operators to provide detailed air quality analyses and use sophisticated air pollution control technology, according to the EPA press release. At the same time, the U.S. only has 26 days of diesel remaining in its commercial inventories and a gallon of diesel is roughly $1.58 more expensive than it was in November 2021, according to the Energy Information Administration (EIA).

The refinery, which was once one of the largest refineries in the world, used to be able to process 600,000 barrels of crude oil per day into gasoline and heating oil, a form of diesel, according to Bloomberg. The price of heating oil was 65% higher in October 2022 than it was in October 2021, meaning that Americans in the Northeast of the country will pay significantly more to keep their homes warm during the cold winter months, according to the EIA.

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4 thoughts on “Biden’s EPA Holds Up Major Oil Refinery Amid National Fuel Crisis”

  1. I vacationed on St. Croix Island this past February and frequently drove by the refinery you mention. That place is HUGE. What was so unusual about the place? Not a single vehicle parked in its massif parking lot. If not reopened, the structures, buildings and storage tanks will be abandoned on site and will never be removed.

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