June 22, 2017 - 11:00 AM EDT
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South Texans Against the Refinery: Economic Analysis Finds Major Flaws in Raven Petroleum Estimates

Economist Concludes $1.9B Cost and Only 126 Permanent Jobs

BRUNI, Texas, June 22, 2017 /PRNewswire/ -- The South Texans Against the Refinery (STAR) Coalition, formed to raise critical issues about the proposed Raven Petroleum refinery in Duval County, Texas released an economic analysis studying the project based on publicly available information. The analysis estimates the total cost of the project is $1.9B, nearly four times the $500M Raven estimate. Also, the report concludes 126 permanent jobs will be created if the refinery becomes operational, not the 350 permanent jobs claimed by Raven.

The analysis was prepared by Daniel J. Pastor, Ph.D., assistant professor of economics from the University of Texas at El Paso. The analysis used Jobs and Economic Development Impact (JEDI) tool, an industry screening tool that estimates the economic impacts of constructing and operating fuel production and similar facilities. JEDI is part of the National Renewable Energy Laboratory, of the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, and is also informed by industry experts and project managers. The analysis does not include the additional items promised by Raven including geothermal power, carbon capture technology, fire station, and a hospital.

"We were shocked to learn the wide discrepancy between Raven's claims and estimates from a trusted Texas economist," said Bob Bruni, STAR Coalition member and South Texas landowner. "After seeing how far off their numbers are, doubts about the project's feasibility increase."

Raven has not submitted a TCEQ permit application, making it nearly impossible for Raven to begin construction in 2017 and become operational in 2018. The TCEQ air permitting process can take two years, considering revisions and the likelihood of a contested case hearing, and longer for additional geothermal permits. If permitted, the study estimates it will then take four years to build the refinery, making it operational in 2023 at the earliest. The difficulty and unreliability of predicting demand for petroleum products over seven years out cast further doubt on the project's feasibility.

About South Texans Against the Refinery: South Texans Against the Refinery (STAR) is a coalition of residents, landowners, and organizations concerned that Raven Petroleum's proposed refinery in the tri-county area (Duval, Webb, and Jim Hogg counties) will cause harmful air pollution, threaten local water supplies, and disrupt area wildlife for generations.

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/south-texans-against-the-refinery-economic-analysis-finds-major-flaws-in-raven-petroleum-estimates-300478346.html

SOURCE South Texans Against the Refinery

Source: PR Newswire (June 22, 2017 - 11:00 AM EDT)

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