Core Viewpoint - Sky Quarry Inc. forecasts a potential fuel shortage in Nevada due to production disruptions, regulatory actions, and rising demand, positioning itself to ramp up production to address this gap [1][5]. Group 1: Market Conditions - Nevada imports approximately 150,000 barrels of transportation fuel daily, with California supplying about 88% of Nevada's fuel needs [2]. - Recent disruptions, including the explosion at the Martinez refinery, which accounts for 9.64% of California's refining capacity, are tightening fuel supply [2]. - California's ABX2-1 law may further reduce refinery output, impacting fuel availability in Nevada and Arizona [3]. Group 2: Company Positioning - Sky Quarry's Foreland Refinery is the only crude oil refinery in Nevada, currently operating below full capacity but plans to increase production in 2025 [5]. - The company aims to utilize its 4,500-5,000 barrel-per-day refining capacity to stabilize the regional fuel market and benefit from rising refining margins [5]. - CEO David Sealock emphasizes the company's critical role in stabilizing the regional fuel supply amid supply disruptions in California [6]. Group 3: Industry Trends - The Nevada fuel market is tightening due to rising demand from expanding industrial sectors like mining, which are crucial to the state's economy [4]. - California imports 59% of its crude oil and fuels, averaging 850,000 barrels daily in 2022, indicating a reliance on external sources that could be affected by proposed tariffs [3].
Sky Quarry Predicts Fuel Shortage in Nevada as California Refinery Shutdowns Spark Supply Concerns