What specific cost reduction has Phillips 66 achieved in its refining business, and what is its target?

Phillips 66 CEO Mark Lashier stated that the company has taken about $1 per barrel of cost out of its refining business and is targeting $5.50 per barrel, while noting that refining costs in California are around $15 a barrel.

How has Phillips 66 leveraged integration and operational improvements to enhance refining performance?

Lashier explained that Phillips 66 has improved its yield of high-value products, enhanced refinery utilization by running refineries at higher rates, and lowered costs — all outcomes of significant investment in integration, which has allowed the company to capitalize on market opportunities, such as moving refined products to high-price California markets reliant on costly Asian-linked supplies and delivering North American crude to its East Coast refineries during periods of elevated oil prices.

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