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Refining and Marketing

The critical link between crude oil and the fuel that consumers use in everyday life is the oil refinery. Crude oil is made up of many types of oil, some of which contain such undesirable impurities as sulfur, nitrogen, and metals. The goal of a refinery is to process the crude oil into quality oil products as efficiently and environmentally safe as possible by removing many of these impurities.

Each refinery is limited by two main factors: the products that the refinery is designed to create and the quality and characteristics of the crude oil used to create these products. Specific equipment is designed for each process, which shapes the crude oil using variations in pressure, temperature and specialized catalysts to create the end product, whether it is motor gasoline, jet fuel, kerosene or lubricants.

Alon USA owns three sour and heavy crude oil refineries that are located in Big Spring, Texas, and Paramount and Long Beach, California, and a fourth refinery located in Willbridge, Oregon, which is mainly designed for producing asphalt. The three refineries have a combined throughput capacity of approximately 170,000 bpd. At these refineries Alon USA refines crude oil into petroleum products, including gasoline, diesel, jet fuel, petrochemicals, feedstocks and asphalts, which are marketed primarily in the South Central, Southwestern and Western United States.

Alon USA primarily markets quality fuel products in South central, southwestern and western United States through a network of approximately 1,200 locations under the ALON brand name, which includes its 308 owned or leased 7-Eleven branded convenience stores located in Texas and New Mexico. Alon USA also sells fuels on an unbranded basis, largely through its physically integrated system.