Monroe Energy, a wholly owned subsidiary of Delta Air Lines, took over and retooled the former ConocoPhillips refinery in Trainer, Pennsylvania in June of 2012. We spoke with CEO Jeffrey Warmann about Monroe and the region’s energy industry. Warmann comes to the Philadelphia area with 30 years of oil refinery experience.

Delta has the largest non-military jet fuel demand in the world, requiring 300,000 barrels per day. By refining its own fuel and by implementing a highly successful hedging program, Delta’s Fuel Team has lowered fuel costs from $13 billion to $12 billion in just one year. Delta aims to have the lowest jet fuel cost of any carrier.

What makes the Philadelphia area appealing to Monroe?

Delta started investigating how it could get a better handle on one of its largest cost components.  At the time, jet fuel was 40 percent of the cost of flying a plane. Delta has a lot of assets invested in nearby airports, including JFK, LaGuardia, and Logan. Delta viewed the shutdown of the Trainer refinery and others in the region as an opportunity to find a creative and innovative solution to the rising costs of jet fuel.  This asset was in a strategic location that was advantageous to Delta.  We were impressed with the capability of the area workforce as well as the willingness of local, county, state and federal officials to help facilitate our transaction. The Governor, his cabine