Sky Quarry Starts Production at Nevada’s Eagle Springs Refinery

Sky Quarry has begun producing petroleum products at its Eagle Springs refinery near Ely, Nevada, after restarting the facility following repairs and upgrades. Sky Quarry plans to increase throughput gradually while pursuing additional crude supplies and sales across the West.

Foreland Refining Corporation, Sky Quarry’s wholly owned subsidiary, operates the facility. Eagle Springs is Nevada’s only crude oil refinery and has nameplate processing capacity of approximately 5,000 barrels of crude oil per day. Its products include diesel and distillate fuels, vacuum gas oil, naphtha and liquid asphalt.

The refinery received a Nevada air permit in September before completing repairs and upgrades and restarting. The company’s announcement marks a move from restart work into petroleum production, while its stated capacity describes the plant’s nameplate capability rather than a reported current production rate.

Regional diesel pricing has strengthened alongside the restart. A Salt Lake City benchmark showed diesel crack spreads of $133 to $136 per barrel on Oct. 21, compared with about $33 in January, an increase of roughly 300%. The calculation uses wholesale diesel rack prices and December West Texas Intermediate (WTI) futures. Those prices were observed at different times, making the spread a regional pricing indicator rather than a measure of Sky Quarry’s actual refining margins.

The company’s own refining margins depend on its feedstock costs, transportation, operating expenses, product yields and realized sales prices. The regional benchmark therefore provides market context but does not establish what Eagle Springs earns from refining.

Sky Quarry plans to raise throughput gradually as operations progress and to secure more crude for the refinery. It is assessing supplies from nearby producing regions and aims to expand commercial sales across the West. The company also described potential future integration with its PR Spring resource development operations in Utah.