Invest Directly in Revitalizing the U.S. Refining Industry with New, Cleaner, Advanced Refineries Expected to Generate Exceptional Investor Returns
Our investment opportunities in developing new U.S. refineries are driven not by the volatility of oil prices, but by the steady demand for refined products. This strategy is designed to maximize returns and generate reliable income for our investors, ensuring you receive the attention and financial returns you deserve.
Cleaner Refineries
One Answer to the Energy Transition
Canyon Energy is developing cleaner refineries in U.S. oil basins using new systems and technologies to displace aging, inefficient and high emission plants. We believe a rejuvination of the U.S. refining industry is needed to reduce unnecessary emissions and reconstruct the fragile core of our country's economic engine.
Our first refinery will be located on 400-acres in Utah, designed to produce 50% fuels (diesel and jet fuel) and 50% non-fuels, which includes industrial lube oils and refined wax that provide the products we need for everyday life.
Two Ways to Invest in Canyon and Build Generational Wealth
ESG Focus
​Environmental, Social, and Governance (ESG) is indeed an effective benchmark to track progress in the energy transition, as it reflects the ongoing advancements in technologies and processes that promote a cleaner, more sustainable environment.
The ESG and shareholder focus on dividends/buybacks, however, turned attention away from traditional energy sources required to maintain supply and meet future demand. We believe ESG concerns can be balanced with utilizing new tech to provide the cleanest refineries available.
Fragile Industry
Refineries are closing due to age, uneconomic environmental upgrades, or biofuel conversions in response to attractive Federal incentives. Most U.S. refineries are 50-120 years old, with the average age being 40 years.
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Refineries are deferring maintenance to maximize profits on inefficient plants, which leads to refinery disruptions and accidents that suddenly reduce supplies and cause unecessary price spikes.
New Refineries Needed
The full transition to sustainable energy will take decades as electric vehicles face consumer acceptance and infrastructure challenges. In the interim, global oil demand is still expected to rise through 2050, which means continued investment in oil production and refining is essential. Balancing the need for short-term energy security with long-term sustainability goals will be key as we navigate this complex and evolving transition.
What is Oil Worth without Refining?
Zero. Crude oil requires refining and processing to be made into a wide range of products that are essential for modern society. These products vary depending on the type of crude oil but generally include fuels and petrochemicals, which are used in manufacturing other products such as plastics, synthetic rubber, and fertilizers, while waxes contained in oil are used in producing cosmetics and pharmaceuticals.
Why Have No New Refineries been Built in the U.S. Since 1976?
This is simply a perception - 16 refineries were built in the U.S. since such time totaling almost 600k BPD in total capacity with expansions included, but most were smaller refineries. Since 2014, there were only 7 refineries representing almost 325k BPD (34k BPD average) after accounting for expansions. The problem is that there is not enough capacity to keep up with refinery closures.
The Big Oil Swap
Today, the U.S. imports over 6 million barrels of oil per day while exporting around 4 million barrels. Why is that? The answer lies in the design of U.S. refineries, which are primarily built to process heavier crude oils with high sulfur content—types of oil that are more commonly produced in other regions of the world. Meanwhile, much of the oil produced domestically is lighter and less suited to these refineries, a legacy issue of outdated infrastructure.​
U.S. Energy Security
What would happen if U.S. oil imports were interrupted or halted altogether? The consequences would be severe - U.S. fuel and product supplies would plummet by as much as 30%, triggering major disruptions in the economy. This would likely lead to sharp increases in fuel prices, sparking inflation and affecting everything from transportation costs to manufacturing and consumer prices.
Canyon's Utah Refinery
Canyon is developing a specialized 50k Barrels per Day (BPD) refinery on 400-acres in Northeastern Utah. The site for Canyon’s first processing plant was chosen after an extensive search throughout Utah's Uinta Basin. The project team considered several key factors in their selection process, including local community support, the site's physical characteristics, the feasibility of obtaining a refinery permit, and access to existing infrastructure.​​
Utah's Unique Opportunity
Canyon’s first refinery will be located in Utah’s Uintah Basin, where the production of a unique waxy crude oil has more than doubled in the past two years, with well performance now surpassing Permian Basin wells. Canyon also expects to benefit from a large oil price discount in the region and the ability to separate wax to produce lubricants and refined wax.
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The Company expects the project will create approximately 400 jobs during peak construction. Once the plant is operational, around 60-70 employees will oversee daily operations. The resulting economic activity will benefit the County and surrounding communities for many years to come.​
Benefits of New Refineries
Economic
The benefit of new refineries is the ability to maximize efficiencies and economics based on a designing the refinery for processing of a specific oil using cleaner fuel, electrification, technologies, and emission reduction systems that provide for predictable production with low maintenance CapEx and high expected free cash flows for the benefit of our investors.
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Emissions
Canyon also expects to have the benefit of operating new refineries with dedicated solar and/or highly efficient and low emission natural gas power generation. The result is the cleanest and most environmentally friendly U.S. refineries, with the lowest net unit costs in the industry.