Key Takeaways
- Sky Quarry (SKYQ) shares exploded 120% on Thursday amid Brent crude surpassing $112/barrel, marking a year-to-date gain exceeding 50%
- The company runs the Foreland Refinery, Nevada’s sole operational refinery, processing approximately 5,000 barrels daily
- Recent shutdowns at Phillips 66 and Valero facilities in California eliminated nearly 290,000 barrels per day from West Coast supply
- Nevada’s daily petroleum consumption exceeds 300,000 barrels, yet the state lacks alternative domestic refining infrastructure
- Management is pursuing agreements with regional crude producers to expand feedstock availability for the refinery
Sky Quarry Inc. (SKYQ) experienced a dramatic Thursday session, with shares skyrocketing 120% as escalating oil prices and dwindling refining infrastructure along the West Coast drew attention to its Nevada operations.
Brent crude closed near $112 per barrel on March 30, representing a surge exceeding 50% from January 1 levels. The catalyst: Middle Eastern tensions that effectively blocked the Strait of Hormuz for most commercial vessels. According to the U.S. Energy Information Administration’s March 10 forecast, Brent is projected to maintain levels above $95 per barrel through the coming two months.
This environment holds significant implications for a firm controlling Nevada’s singular operational refining facility.
The company’s Foreland Refinery operates under permits allowing roughly 5,000 barrels per day throughput. The facility manufactures diesel fuel, vacuum gas oil, naphtha, and liquid asphalt for paving applications, utilizing crude feedstock originating from Nevada and Utah sources.
Nevada’s daily petroleum product demand surpasses 300,000 barrels. Without additional in-state refining infrastructure, virtually the entire fuel supply must arrive via truck transport or pipeline from adjacent states — chiefly California.
West Coast Refining Infrastructure Faces Significant Contraction
California has witnessed ongoing erosion of its refining sector. Phillips 66 permanently closed its Los Angeles-based Wilmington facility at 2025’s conclusion. Valero plans to shutter its Benicia refinery by mid-2026.
Together, these closures eliminate approximately 290,000 barrels daily of processing capability — representing roughly 18% of California’s aggregate refining capacity, per data from the Oil & Gas Journal and TankTerminals.com.
This development creates supply constraints across the western region, enhancing the strategic importance of the Foreland Refinery’s market position.
Chief Executive Marcus Laun stated directly: “Nevada is one of the most import-dependent fuel markets in the country.”
Sky Quarry generated $16.4 million in trailing twelve-month revenue. Nevertheless, the firm continues consuming significant cash while maintaining substantial debt obligations, factors requiring investor consideration.
Company Pursues Feedstock Supply Enhancement
Management is currently negotiating with regional crude oil producers and lease operators throughout Nevada to expand local production volumes that could directly supply the refinery.
Sky Quarry additionally controls the PR Spring operation in eastern Utah. This facility processes asphaltic bitumen from oil sands ore into heavy crude and contains estimated reserves of 180 million barrels of asphaltic bitumen ore.
The PR Spring location features two Solar Centaur Caterpillar Gensets delivering combined electrical generation capacity of 7 megawatts. The company recently launched a Request for Proposals process to evaluate commercial deployment opportunities for these power generation assets.
Regarding corporate governance, Sky Quarry recently augmented its board composition by appointing three new independent directors — Omar Hussein, Alexander Monje, and Robert Byrne — fulfilling Nasdaq requirements for majority independent board representation.
Prior to Thursday’s session, the stock had already gained 25% during the preceding week and posted year-to-date returns of 41.5%.
