Pennsylvania

VOL1 ISS1 2015

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rom the late 1960s through the mid-1990s, Delta Air Lines was fond of telling travelers that it was "Ready When You Are." The Atlanta- based airline's jingle became so famous that it made its way into the popular English lexicon. Today, that same slogan would be an apt description of Greater Philadelphia's resurgent oil and gas industry, which is making Delta and plenty of other airlines smile due to lower jet fuel prices. Delta has a lot to do with that. Three years ago, it acquired the former ConocoPhillips refnery in Trainer in Delaware County, and reopened it as Monroe Energy LLC, a wholly owned subsidiary of Delta. Some $250 million in capital investment later, the Philadelphia area refnery is producing so much jet fuel that it is saving the airline anywhere from $240 million to $320 million a year. On top of that, the refnery itself recorded an $86-million proft during the frst quarter of this year. The refnery processes about 185,000 barrels a day, and about 70 percent of that comes from North American crude oil reserves. "Delta wanted to get a handle on their jet fuel costs, which were running at about 40 percent of the costs to fy an airplane," says Jef Warmann, president and CEO of Monroe. "Being in the jet fuel market and having the capability to make their own jet fuel was the whole driver for this acquisition." With a quarter of Delta's feet based in the Northeast region of the country, "Delta viewed the shutdown of this particular refnery and others in the region as an opportunity to fnd a creative and innovative solution to the rising costs of jet fuel," says Warmann. "This asset F 18 P E N N S Y L V A N I A E C O N O M I C Q U A R T E R L Y Greater Philadelphia's oil and gas industry resurgence has Delta and other frms singing happy tunes. O I L & G A S by RON S TA R NER Photo courtesy of Laurel Highlands Visitors Bureau

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