Philadelphia Energy Solutions (PES)

By Christina E. Simeone, PhD - Union of Concerned Scientists, March 2023

Following the explosion of a Philadelphia oil refinery, the refinery went bankrupt and closed.

The explosion and closure left community members grappling with toxic pollution, cleanup, worker dislocation, and an uncertain future for a site that occupied 1,300 acres just 2.5 miles from center city Philadelphia.

In a report commissioned by the Union of Concerned Scientists, Dr. Christina Simeone, author of the Penn Energy Center report, Beyond Bankruptcy: The Outlook for Philadelphia’s Neighborhood Refinery, highlights key findings and shares lessons learned from the events in Philadelphia.

These lessons can help policymakers and other refinery communities prepare for future refinery closures, especially as the transition to electric vehicles inevitably leads to dramatic reductions in demand for gasoline and diesel in the coming decades.

Download a copy of this publication here (link).

By staff - US Chemical Safety Board, October 27, 2022

By Josh Saul - Bloomberg, September 30, 2021

After part of the Philadelphia Energy Solutions refinery exploded into flames one night in 2019, its owners filed for bankruptcy and put the 1,300-acre site up for sale. Hilco Global, a company with a track record of transforming fossil-fuel infrastructure like coal-fired power plants, bought the South Philadelphia facility out of bankruptcy with a grand new vision that includes logistics facilities and research labs.

But first the company has a daunting task: safely dismantling over 100 buildings, 3,000 tanks and 950 miles of dirty pipeline.

The Problem

Oil refining has taken place on the banks of the Schuylkill River since just after the Civil War. By the time the explosion scattered debris across the site and even over the river, the PES Oil Refinery was turning 330,000 barrels of crude day into gasoline, diesel and other petroleum products such as heating oil and jet fuel.

Right now, some parts of the PES Oil Refinery have the feel of a ghost town. Weeds sprout head-high among the pipelines, Canada geese strut down empty roads and small herds of deer bound past a silent railyard. But other parts are bustling with workers and big, yellow excavators as Hilco enters the second year of taking apart equipment and preparing the site for construction. The first tenants are supposed to move into the site in 2023.

By Daelin Brown - Inside Climate News, July 5, 2021

The petroleum smell is gone, the benzene emissions are being monitored and residents in nearby neighborhoods of color feel they’re finally being heard.

Dorthia Pebbles inhaled harmful pollutants and smelled noxious odors from the Philadelphia Energy Solutions Refinery for years when she would leave her rowhome on Hoffman Street to walk to the corner store.

After losing family members to cancer, she and her neighbors who lived across the street from the massive South Philadelphia refinery, once the largest on the East Coast, couldn’t help but conclude that its emissions were giving them asthma and threatening their health in even more serious ways. But no one from the refinery or the city ever gave them any information, or seemed to care.

Then one night in June 2019, the refinery exploded, creating a whole new set of hazards and issues for the neighbors to wrestle with.

“The most recent explosion woke us up out of our sleep,” said Pebbles. “But hearing that it will not be a refinery anymore is good. A lot of people ended up with cancer from the neighborhood.”

Two years after the explosion, Pebbles and other nearby residents said in interviews that relations with the site’s new owner, Hilco Redevelopment Partners, which bought the 1,300-acre property in bankruptcy court last year, have improved and led to talks involving cleanup of the site and jobs.

By Mindy Isser - In These Times, January 10, 2020

In the early morning hours of June 21, 2019, a catastrophic explosion tore through the Philadelphia Energy Solutions (PES) oil refinery in the southwest section of Philadelphia. The training and quick thinking of refinery workers, members of United Steelworkers Local 10-1, averted certain disaster and saved millions of lives. One month later, on July 21, PES declared bankruptcy—their second in as many years—and began to close down the refinery in the following months, laying off almost 2,000 people with no meaningful severance. According to workers who spoke with In These Times, the refinery stopped running crude oil in early August, although there are fewer than 100 workers who were kept on as caretakers for the waste water and steam generating units.

The fire on June 21 and the mass layoffs that followed impacted more than just the physical site of the refinery and the workers who made it run. It also ignited a debate throughout the city about what would become of the refinery site, which has been in operation for more than 150 years. On the one hand, the explosion underscored the dangers the refinery posed to the community immediately surrounding it, and the city as a whole. On the other, the subsequent closure of the refinery meant that workers were suddenly out of work, with no plan from PES or city officials of how to put them back to work.

This debate, while focused on Philadelphia, reflects much larger questions roiling supporters of a Green New Deal: how to ensure a just transition for fossil fuel workers who lose their jobs, and how to build bonds between unions looking out for their members, and climate organizers trying to stop fossil fuel extraction. Interviews with community organizers trying to curb the refinery’s toxic pollution, and workers laid off from the refinery, indicate that the answers are not easy, but require listening to workers, many of whom are already thinking about climate change—and forced, right now, to deal with the hardships of losing their jobs. In the words of Jim, a former worker who requested only his first name be used due to fear of retaliation, “Fossil fuels need to be phased out aggressively. That being said, I’m in the industry. You can’t just allow the people in that industry to become like the coal miners, just floundering.”