This report assesses the impact on the U.S. petroleum refining industry of possible EPA regulations restricting the sulfur content of unleaded gasoline. Sulfur levels of 100 ppm and 50 ppm are considered. Computer models representative of specific refineries in six geographical regions of the U.S. were developed as the basis for determining the impact on the existing refining industry. New refinery construction during the period under analysis (1975-1985) was considered by development of separate computer models rather than expansion of existing refineries. These models were used to assess investment and energy requirements and the incremental cost to manufacture low sulfur unleaded gasoline. Sensitivity analyses examined the effect of variations in key assumptions on the results of the study, such as the type of imported crude oil available for future domestic refining and the projected sulfur level of residual fuel oil manufactured in the U.S. Other sensitivity studies examined in more detail the processing options available to meet the two sulfur levels and the assumptions regarding sulfur distribution in refinery process streams.

EPA project officer: Richard K. Burr. "Author(s): N. Godley [and others]"--Colophon Prepared by Arthur D. Little, Inc. Contract Number: 68-02-1332 "May 1976." Final report. Includes bibliographical references.

v. 1. Project summary -- v. 2. Detailed study results. The objective of this project was to assess the impact on the U.S. petroleum refining industry of possible EPA regulations restricting the sulfur content of unleaded gasoline. Sulfur levels of 100 ppm and 50 ppm were considered. Computer models representative of specific refineries in six geographical regions of the U.S. were developed as the basis for determining the impact on the existing refining industry. New refinery construction during the period under analysis (1975-1985) was considered by development of separate computer models rather than expansion of existing refineries. These models were utilized to assess investment and energy requirements and the incremental cost to manufacture low sulfur unleaded gasoline. Sensitivity analyses examined the effect of variations in key assumptions on the results of the study, such as the type of imported crude oil available for future domestic refining and the projected sulfur level of residual fuel oil manufactured in the U.S. Other sensitivity studies examined in more detail the processing options available to meet the two sulfur levels and the assumptions regarding sulfur distribution in refinery process streams.