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Flying J eyes alternatives to owning Big West refinery

Flying J has confirmed that it is reviewing “strategic alternatives” to its ownership of a refinery in Bakersfield, CA.

Big West Oil LLC, a subsidiary of Flying J, has retained Deutsche Bank Securities Inc. as financial advisor to assist in this process.

“The review of strategic alternatives may result in the sale of all or part of the refinery,” read a statement from Flying J and Big West issued Monday, May 18.

Flying J officially suspended operations of the Bakersfield refinery in January after the diesel and fuel retail giant filed for chapter 11 bankruptcy.

Flying J had 2007 sales exceeding $16.2 billion. The Flying J Group operates more than 200 travel plazas in 41 states and six Canadian provinces and employs about 16,000 workers.

Through other subsidiaries, Flying J also invests in more than 200 oil wells and develops land.

At one time, Big West refineries in Bakersfield and North Salt Lake City, UT, operated to create about 100,000 barrels of crude oil per day, according to court documents.

Another Flying J subsidiary, Longhorn Pipeline, can move 80,000 barrels of diesel and gasoline each day from Houston to El Paso, where the company reportedly owns a terminal capable of storing more than a million barrels.

According to the Energy Information Administration, the Big West plant in Bakersfield has a total operating capacity of 68,000 barrels of oil per day, including 23,200 barrels of high-grade/jet fuel and 25 barrels of hydrogen.

The average breakdown of products made from U.S. processed crude oil includes 10.5 gallons of diesel and 19.5 gallons of regular fuel per 42-gallon barrel, the Energy Information Administration’s Web site states.

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