June 24 (Reuters) – Phillips 66 CEO Mark Lashier said at the Reuters Global Energy Forum in New York on Wednesday that refining and petrochemical earnings face greater volatility due to uncertainty from disruptions in the Strait of Hormuz.
• Lashier added that the company has taken about $1 per barrel of cost out of its refining business and is targeting $5.50 per barrel, while costs in California are around $15 a barrel.
• “We actually have improved our yield of high-value products for our refineries, and we’ve enhanced our utilization, running our refiners at higher rates as we’ve lowered the cost,” he added.
• Lashier noted that the company’s significant investment in integration has paid off, allowing it to capitalize on market opportunities.
• The company capitalized on high prices in California by moving refined products there when the state was dependent on costly Asian-linked supplies and also delivered North American crude to its East Coast refineries, which rely on the Atlantic basin, during a period of elevated oil prices.
(Reporting by Pooja Menon in Bengaluru and Liz Hampton; Editing by Mark Porter)
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