Q1 2026 Tight Refining Margins Confirmed for Delek US and Peers
Sky Quarry issued a Request for Proposals to develop its 180-million-barrel Utah oil sands resource at an estimated $35 per-barrel production cost and 2,000-bpd capacity. The Q1 2026 refining cycle for independent refiners including Delek US confirmed structurally tight margins driven by constrained global capacity and disciplined demand.
1. Sky Quarry RFP Details
Sky Quarry has opened its fully permitted PR Spring oil sands site in Utah for potential partners, offering development of 180 million barrels at an estimated $35 per-barrel production cost, with a constructed processing facility capable of 1.5 million tons per year and 2,000 barrels per day capacity.
2. Q1 Refining Cycle Highlights
The Q1 2026 refining cycle for independent U.S. refiners, including Delek US, saw structurally tight margins as operators cited constrained global capacity and disciplined demand, reflecting a Western supply basin under pressure and limited margin upside.
3. Implications for Delek US
Delek US, with its refining operations in the U.S. South and West, may face sustained margin compression but could see feedstock cost benefits if upstream developments like Utah oil sands expand supply at lower production cost levels.