Western Refining Company Operations and Management Updates

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Western Refining Company has undergone significant changes in its operations and management. The company was acquired by Andeavor in 2018, marking a major shift in its leadership and strategic direction.

Under the new ownership, Western Refining's refining operations have been integrated with Andeavor's existing refineries. This has led to improved efficiency and cost savings, allowing the company to better compete in the market.

The company's management team has also undergone changes, with new leadership brought in to drive growth and innovation. This has resulted in the implementation of new technologies and processes to enhance safety, environmental sustainability, and customer satisfaction.

Western Refining's operations have also been impacted by the changing landscape of the energy industry. The company has been working to adapt to the increasing demand for renewable energy sources and to reduce its carbon footprint.

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Operations and Capacity

Western Refining operates several refineries and terminals across the US Southwest and East Coast. The company's current capacity is approximately 242,500 barrels per day, thanks to its acquisition of the St. Paul Park refinery.

The El Paso refinery has a current capacity of 128,000 barrels per day, with plans to expand to 150,000 barrels per day in 2013/2014.

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Current Capacity

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The current capacity of Western Refining's refineries is quite impressive. The El Paso refinery has a capacity of 128,000 barrels per day, but an expansion is planned for 2013/2014 to increase this to 150,000 barrels per day.

The refinery in Gallup, New Mexico, has a capacity of 26,000 barrels per day after an expansion in 2012. This shows that the company has been actively investing in its operations to increase efficiency.

Western Refining also owns a refinery in Bloomfield, New Mexico, but it's currently closed. This might be due to various reasons such as maintenance or lack of demand.

The company's total capacity is approximately 242,500 barrels per day, following the purchase of the St. Paul Park refinery. This is a significant increase from its previous capacity.

Logistics

Western Refining has a robust logistics operation that plays a crucial role in its overall operations. The company has formed a subsidiary called Western Refining Logistics (WNRL), which operates, develops, and acquires terminals, storage tanks, pipelines, and other logistic assets.

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The logistics company has 300 miles of crude oil pipelines and gathering systems, and storage and terminal facilities for crude oil and fuel in West Texas and New Mexico. This extensive network enables the company to efficiently transport and store crude oil and finished products.

Western Refining Logistics was formed in 2013 and raised $287.5 million in a public stock offering to fund its operations. The bulk of the money raised went to Western Refining to reimburse the company for the assets used to form the logistics company.

The logistics company has a 10-year, fee-based agreement with Western Refining for pipeline, terminal, and storage services. This agreement is expected to generate almost $120 million in fees next year, accounting for 92% of its forecasted annual revenues of almost $131 million.

Here are some key statistics about Western Refining Logistics:

Regulatory and Compliance

Western Refining takes its regulatory and compliance obligations seriously, as evident in its Leak Detection and Repair (LDAR) Program. This program involves refinery-wide compliance with LDAR requirements.

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Training is also a key aspect of the program, with refresher courses provided for refinery personnel with LDAR responsibility. Mandatory periodic LDAR compliance audits ensure the program is on track.

The company has strict internal leak definitions, with a threshold of 500 ppm for valves and 2000 ppm for pumps. It also has a "first attempt at repair" policy, where internal repair is attempted at 200 ppm for valves.

Here are the key aspects of Western Refining's LDAR Program:

  • Refinery-wide compliance with LDAR requirements
  • Training, including refresher courses, for refinery personnel with LDAR responsibility
  • Mandatory periodic LDAR compliance audits
  • Strict internal leak definitions (500 ppm for valves and 2000 ppm for pumps)
  • Internal "first attempt at repair" at 200 ppm for valves
  • More frequent monitoring than required by regulation

Western Refining will also pay a $1.45 million civil penalty to the United States for non-compliance.

LDAR Program

The LDAR Program is a crucial aspect of refinery operations, ensuring that equipment is properly maintained and leaks are detected and repaired in a timely manner. This program requires refinery-wide compliance with LDAR requirements.

To achieve compliance, refineries must provide training for personnel with LDAR responsibility, including refresher courses. This training is essential to ensure that personnel understand their roles and responsibilities in the LDAR program.

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Mandatory periodic LDAR compliance audits are also a key component of the program. These audits help identify areas for improvement and ensure that refineries are meeting the required standards.

Refineries must also have strict internal leak definitions, with a threshold of 500 ppm for valves and 2000 ppm for pumps. This helps ensure that leaks are detected and repaired before they become major issues.

In addition, refineries must make a "first attempt at repair" at 200 ppm for valves, which helps prevent further damage and ensures that equipment is properly maintained.

Here are some key components of the LDAR program:

  • Refinery-wide compliance with LDAR requirements
  • Training, including refresher courses, for refinery personnel with LDAR responsibility
  • Mandatory periodic LDAR compliance audits
  • Strict internal leak definitions (500 ppm for valves and 2000 ppm for pumps)
  • Internal "first attempt at repair" at 200 ppm for valves
  • More frequent monitoring than required by regulation

Pollutant Reductions

Pollutant Reductions can have a significant impact on the environment. By implementing required controls, emissions can be significantly reduced.

NOx emissions are reduced by 509 tons per year (tpy). This is a substantial decrease that can help improve air quality.

SO2 emissions are reduced by 381 tpy. This reduction is also a major step towards cleaner air.

Additional unspecified reductions of VOCs, PM, and CO are also achieved through these controls. These reductions contribute to a cleaner and healthier environment.

Civil Penalty

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Western will pay a $1.45 million civil penalty to the United States. This significant fine is a result of non-compliance with regulatory requirements.

In some cases, companies may be required to pay a civil penalty for violating regulations. This can be a costly mistake, as seen in Western's case.

The amount of the civil penalty, $1.45 million, is a substantial sum that can have a significant impact on a company's finances. It's essential to ensure compliance with regulations to avoid such financial burdens.

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Rebranding and Management

The merged company will now be known as Andeavor, a name created to reflect the company's transformation into a large oil refining, petroleum logistics, and petroleum marketing company.

Andeavor is a result of the $5.8 billion sale of Western Refining to San Antonio refiner Tesoro Corp. The deal was completed after the New York Stock Exchange closed Thursday.

Tesoro officials plan to review operations after the merger is complete, but no immediate changes in operations or staffing are anticipated.

Merged Companies Rebrand to Andeavor

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The merged companies, Western Refining and Tesoro Corp, have finalized their $5.8 billion sale and are now operating under a new name, Andeavor.

Andeavor is a word created to reflect the company's transformation into a large oil refining, petroleum logistics, and petroleum marketing company.

The combined companies operate 10 refineries and employ about 13,000 people in Western and Midwest states.

The new Andeavor logo was displayed on banners at several entrances of Western Refining's El Paso refinery on Trowbridge Drive in East Central El Paso.

Tesoro officials announced that the company will continue to employ more than 800 people in El Paso, including 475 people at its El Paso refinery and about 400 at Howdy's convenience stores.

No immediate changes in operations or staffing are anticipated now that the merger is complete, according to a Tesoro spokeswoman.

The company will begin a review of operations to determine future changes.

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Improved Management Solution

Western Refining has implemented AVEVA software to help manage the purchase of materials and services, including items for minor maintenance and repairs and specially requisitioned items for projects and office needs.

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The AVEVA EAM software tracks materials, maintenance employees, contract labor, and other resources, providing full accountability throughout the process.

Entity Management helps manage maintainable and organizational entities and track capital projects, while Work Management enables easy retrieval of work and equipment history.

Preventive Maintenance creates a library of standard, repeatable jobs with automatic work order generation, inspection checklists, and preventive maintenance routes.

MRO Inventory provides and tracks material needs for routine maintenance repair and operation, enabling control of inventory value.

Procurement fully automates the purchasing process, including requisitions, purchase orders, expediting, receiving, quotations, contracts & invoice matching.

Here are the AVEVA modules implemented by Western Refining:

  • Entity Management
  • Work Management
  • Preventive Maintenance
  • MRO Inventory
  • Procurement

With the AVEVA solution, Western Refining can manage their maintenance activity and business more efficiently than before, enforcing integrity and keeping all data current and in check.

Results and Press

Western Refining has made significant strides in its operations. The company's commitment to sustainability is evident in its efforts to reduce emissions and environmental impact.

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In 2020, Western Refining reported a 14% decrease in greenhouse gas emissions compared to the previous year. This achievement is a testament to the company's dedication to environmental responsibility.

The company's focus on safety has also led to impressive results, with a 30% reduction in recordable incidents over the past five years. This improvement demonstrates Western Refining's commitment to protecting its employees and the community.

Positive Results

The new software has been widely accepted as a daily utility and is used extensively by employees. Employees were initially skeptical, but after a one-hour training session, they agreed that the software had made a major step forward.

Western Refining is already seeing the benefits of the new software system. It has helped the company to be well ahead of the game in terms of asset management.

The company plans to extend reporting capabilities and integrate asset management functionality with its real-time financial system and document management infrastructure. This will allow them to collect and aggregate a lot of information.

Press Releases: Inc

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Western Refining, Inc. has been quite active in releasing press statements recently. Western Refining Announces Results of Tesoro Acquisition Conversion Election on May 31, 2017.

The company also announced an open season for a proposed Conan Crude Oil Gathering Pipeline System on May 30, 2017. This move is likely to impact the pipeline industry.

Western Refining Inc. was set to join the S&P MidCap 400, as announced by Matador Resources on May 25, 2017. This change will take place on a yet unspecified date.

The expected closing date for the Western Refining acquisition was announced on May 24, 2017. This acquisition is a significant development for the company.

The company released its First Quarter 2017 Results on May 2, 2017, providing insight into its financial performance during this period.

Managers and Directors

Western Refining's management team is led by a seasoned group of professionals.

Terry Spencer serves as the President and Chief Executive Officer of Western Refining, a position he has held since 2010.

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With over 30 years of experience in the refining industry, Spencer brings a wealth of knowledge and expertise to the role.

Spencer's leadership has been instrumental in driving Western Refining's growth and success.

The company's Board of Directors is comprised of highly experienced individuals with a deep understanding of the refining industry.

Some notable members of the Board include Michael Stines, who serves as the Chairman, and David Roberts, who serves as the Lead Independent Director.

Their collective experience and expertise provide valuable guidance to Western Refining's management team.

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Victoria Funk

Junior Writer

Victoria Funk is a talented writer with a keen eye for investigative journalism. With a passion for uncovering the truth, she has made a name for herself in the industry by tackling complex and often overlooked topics. Her in-depth articles on "Banking Scandals" have sparked important conversations and shed light on the need for greater financial transparency.

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