Sky Quarry Inc. shares jumped about 120% on Thursday after market participants weighed a set of developments that increase the perceived strategic value of the company’s Nevada refinery operations. Central to the move were higher global crude prices and ongoing contractions in refining capacity on the U.S. West Coast.
The company operates the Foreland Refinery, which is the only functioning refinery located within Nevada. The plant holds permitted capacity of approximately 5,000 barrels per day and refines crude from Nevada and Utah into products including diesel, vacuum gas oil, naphtha, and liquid paving asphalt.
Brent crude rose to about $112 per barrel at the close of trading on March 30, marking more than a 50% increase since the start of the year. The price gains have coincided with geopolitical developments that the article reports have effectively closed the Strait of Hormuz to most commercial traffic. In addition, the U.S. Energy Information Administration’s March 10 Short-Term Energy Outlook projected Brent remaining above $95 per barrel over the next two months.
Nevada’s consumption of petroleum products is larger than the state’s in-state refining output can meet. The U.S. Energy Information Administration estimates the state uses over 300,000 barrels per day of petroleum products, and with no other refineries inside Nevada, the bulk of fuels are transported in from neighboring states, principally California.
That dependency is occurring at a time when California’s refining capacity has been shrinking. The Phillips 66 Wilmington refinery in Los Angeles permanently stopped crude processing at the end of 2025. Valero’s Benicia refinery is slated to close by mid-2026. Together, those facilities represent roughly 290,000 barrels per day of capacity, a material portion of regional refining capability.
Sky Quarry said it is engaged in discussions with regional crude suppliers and Nevada leaseholders about possibilities to boost local production that could feed the Foreland Refinery. The company additionally owns the PR Spring property in eastern Utah, which is designed to convert asphaltic bitumen oil sands ore into heavy oil. That Utah asset is reported to contain an estimated 180 million barrels of asphaltic bitumen ore.
Investors appear to be pricing the combination of higher international crude prices, constrained regional refining capacity and Sky Quarry’s dual assets into the company’s stock. The market reaction highlights the sensitivity of local fuel supply economics to shifts in both global crude benchmarks and regional refinery availability.
Key points
- Sky Quarry’s stock rose roughly 120% after Brent crude climbed to about $112 per barrel and West Coast refinery capacity declined.
- The Foreland Refinery is Nevada’s sole operating refinery with about 5,000 barrels per day of permitted capacity, producing diesel, vacuum gas oil, naphtha and liquid paving asphalt.
- Sky Quarry also owns the PR Spring facility in eastern Utah, with an estimated 180 million barrels of asphaltic bitumen ore, and is in talks to increase local crude supply to the Nevada refinery.
Risks and uncertainties
- Regional fuel supply remains reliant on refineries outside Nevada; ongoing closures in California reduce nearby refining capacity and could affect logistics and fuel flows.
- Movements in Brent crude prices - which have risen sharply and remain elevated - are driven by geopolitical developments described in the article; future price changes could alter the refinery’s economics.
- Plans to increase local crude production or to utilize the PR Spring asset depend on successful discussions and execution; the article reports those talks are ongoing but does not provide outcomes.