Marathon Petroleum to Switch to Domestic Oil in Event of Trade War
Marathon Petroleum, the largest U.S. refiner, is exploring options to switch to domestic oil supplies if President Trump's potential trade war restricts access to foreign crude.
Chief Commercial Officer Rick Hessling stated that Marathon's Midwest refineries could process more non-Canadian crudes, including oil from the Bakken formation, Rocky Mountains, and Marcellus and Utica shale basins.
Domestic oils offer a viable alternative to the heavy Canadian crude that U.S. refiners have relied on, particularly in the Midwest. Valero Energy Corp. has expressed concerns about potential output cuts due to tariffs.
Marathon believes the transition to lighter grades of U.S. oil would have minimal impact. Refiners are also considering the cost implications of tariffs, which could be borne by producers and consumers alike.
CEO Maryann T. Mannen stressed that the tariffs are not yet finalized and that Marathon is actively engaging with the administration and industry associations to mitigate potential impacts.