BP's Whiting, Indiana refinery reached a new peak crude oil processing level of 270,000 barrels per day, helping the London-based company's profits soar by 34 percent last quarter, according to BP's 2Q results.
The refinery, based in Northwest Indiana, provides gasoline, jet fuel, diesel, and other refined products to several Great Lakes states, including the Chicago market. The refinery completed a modernization plan to boost the amount of cheap heavy crude it could process last year. BP's CEO Bob Dudley said the Whiting refinery contributed to what he called another successful quarter.
The 125-year-old refinery used to primarily process sweet crude oil, but was updated over last years to instead refine more heavy crude oil because of the production boom in the oil sands areas in Canada and the Dakotas.
"Looking to the third quarter, in the fuels business we expect stronger margin capture relative to the second quarter, driven by a lower level of turnarounds and Whiting operations," chief financial officer Brian Gilvary said.
BP warned additional sanctions on Russia could affect its profitability because of its 19.75 percent ownership stake in the Russian oil giant Rosneft. An erosion of its relationship with Rosneft, which is majority controlled by the Russian state, could tarnish its reputation.