Richfield Petroleum is pursuing a strategy to develop greenfield, small-scale refining operations to take advantage of the growing supply of light, sweet crude oil from West and South Texas shale production. Richfield has devoted considerable resources over the past three years evaluating options for refinery process technologies, identifying and assessing potential project locations, and discussing logistics solutions with leading midstream and crude logistics companies in the Texas Gulf Coast region. We believe that the low and historically stable crude oil price environment, continued expansion of crude pipeline capacity from West Texas to the Gulf region, and the implementation of regulatory changes for certain transport fuels make this the ideal time to invest in state-of-the-art refining capacity.
Richfield has completed site identification and evaluation, permitting assessment, and has held preliminary discussions with potential supply and logistics partners. We believe there are several locations where our projects can take advantage of existing nearby pipeline infrastructure and use deep-water access to reduce construction costs and to provide an export option for refined products at transport costs that are competitive with other U.S.-based refineries.