Phillips 66 CEO Mark Lashier appeared at the Reuters Global Energy Forum in New York on Wednesday, cautioning that disruptions in the Strait of Hormuz are contributing to increased uncertainty and earnings swings in the company’s refining and petrochemical divisions.
Lashier shared that the company has already trimmed approximately $1 per barrel from its refining costs and has set a goal of reaching $5.50 per barrel. He noted that operating costs in California currently run around $15 per barrel, making it a comparatively expensive market.
On improving efficiency, Lashier said, “We actually have improved our yield of high-value products for our refineries, and we’ve enhanced our utilization, running our refiners at higher rates as we’ve lowered the cost.”
The CEO also pointed to the company’s investment in integration as a key factor in its ability to respond to market opportunities. That strategy allowed Phillips 66 to ship refined products into California when the state was heavily reliant on more expensive supplies tied to Asian markets.
Additionally, the company moved North American crude oil to its East Coast refineries — which typically draw from the Atlantic basin — during a stretch of elevated oil prices, further capitalizing on favorable conditions.
