Delta Air Lines said Wednesday that its Trainer oil refinery will produce a "modest" profit in the current quarter ending June 30, and that 10 percent of the refinery's crude supply will be cheaper Bakken crude coming from the upper Midwest in the second half of the year.
Delta president Edward Bastian, speaking at a Bank of America Merrill Lynch conference, said Delta subsidiary Monroe Energy L.L.C. will make plant modifications over the next 12 months to maximize jet fuel production to 40,000 barrels a day by early 2014. "That will represent about 25 percent of Delta's domestic consumption," Bastian said.
Delta acquired the former ConocoPhillips refinery in Delaware County last year. After a tough start-up, exacerbated by Superstorm Sandy, "we're really pleased with the progress we've made and we have a great team in place at Trainer," Bastian said.
"Remember we did not buy Trainer to make money. We think we will make money, by the way," Bastian said. "The objective was to hedge our jet fuel cracks," which is the differential or profit made in extracting petroleum products such as jet fuel from crude oil.