Delta Airlines will become the new owner of Conoco-Phillips’ money-losing oil refinery in Delaware County to produce its own jet fuel.
Delta becomes the first airline to try refining its own fuel. Saving just a few cents a gallon could mean hundreds of millions of dollars for the carrier. However, airline analyst John Armbrust points out oil refining is a tough business. “I’m sure the other airlines in the world, particularly in that area will be watching to see if this works for Delta. If it works they’re going to be the smartest kid on the block. If it doesn’t. People will say see that’s was the dumbest thing they could have ever done,” said Armbrust.The refinery’s current owner, ConocoPhillips, has lost money on the facility. High crude prices have combined with lower U.S. demand for gasoline to make it a challenging business. Governor Corbett is scheduled to attend a formal announcement of the deal.