Marathon Petroleum Goes Public
The second largest independent U.S. oil refiner—Marathon Petroleum Corp.—is set to go public on Friday July 1, 2011. The company will open to public investment on the New York Stock Exchange, making the move in response to a year-long rise in refining stocks.
Marathon Petroleum has been formed as a subsidiary of the parent company Marathon Oil Corp. Apparently, investors have increasingly pushed for the company to capitalize on gasoline prices, which have risen at twice the rate of crude oil over the past year.
Marathon Petroleum has been unofficially valued at $14 billion as permitted by the exchange to help investors gauge stock demand. This valuation is roughly equivalent to Valero Energy Corp., which has double Marathon’s refining capacity. However, Marathon Petroleum’s upgraded plants—which account for half of its refining capacity—have helped the company capture higher margins.
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The company was split off from Marathon Oil after reported years of frustration in which the refining division reduced the value of the company’s more profitable crude oil and natural gas business. The split was originally planned for February 2009 according to Marathon Oil CEO Clarence Cazalot; however, the global financial collapse halted plans.
With the recession subsiding, margins on U.S. crude refining operations have nearly tripled as energy demand rises once again. Marathon Petroleum’s margins are expected to further widen in late 2012 after the completion of a $2.2 billion upgrade to the company’s Detroit, Michigan (USA) refinery. The project will boost the refinery’s capacity to refine heavy crude from Canada’s oil sands to 100,000 barrels a day from just 20,000 currently.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.