What will come up of here in Trainer Pennsylvania will keep these in the air. It's jet fuel.
Delta Airlines has secured 80 percent of its jet fuel needs, cutting out the middle man buying this idle the refinery from ConocoPhillips for 150 million dollars.
Delta Airlines is entering the oil refining business.
When we first heard about it two months ago, I said no way in the world.
Tell me what's happening with Delta and Trainer Refinery.
Delta is gonna try something really interesting.
I think they are looking at this same world tired of paying ten dollars or more over the price of crude which is very expensive for jet fuel.
What Delta has secured is the delivery network for jet fuel rearching through out the north east including its hubs at New York's JFK and the Gaudi Airports.
The refinery might cost 150 to 200 million dollars. And from the perspective of the airline like Delta that's less than that what they would pay for a model 777 aircraft.
The state of Pennsylvania added 30 million dollars to the deal for job creation. And Delta plans to spend additional 100 million dollars to upgrade this facility to produce as much jet fuel as possible.
It's jet fuel Delta wants. It will trade the gasoline and diesel that comes out here with other refiners for more fuel for its planes.
The Trainer facility behind me is an oil refinery. It's an idol.
The fact that an airline would even consider buying an oil refinery underscores a drama unfolding in the north east.
Nearly half of the refining capacity on the east coast has either shut down or could shut down later this year.
Buying and turning the Trainer facility back on helps Delta avoid a potential spiking prices and even a shortage which is also a threat to consumers in the north east.
I don't reckon there will be a, you know, a vision of 70s' gasoline and rationing but certainly there could be the possibility that might be later this season but sure it is.
But I think that would even procrastinate until August into the fall.
Even with gas prices close to four dollars a gallon, some north east refineries are losing up to a million dollars a day.
Currently they are only equipped to handle imported oil from Europe and North Africa which costs up to 30 dollars more per barrel than the type through oil refineries on the gulf coast use.