In a time of fast-rising fuel prices and political unrest in key petroleum-producing countries, it’s important to know your energy source is reliable. As refineries face pressure to make cleaner fuels with environmentally friendly processes, confidence in integrity of that source is key.

Those are tough challenges, but are nothing new to the people at CHS Energy, who have been working hard to meet them for decades. While CHS petroleum refinery business is small compared to industry giants, it has grown to meet the needs of an important niche market: CHS member cooperatives and other rural America customers. With a focus on producing reliable, high-quality fuels and other energy products, the CHS team points to five important things you should know about where your energy supplies come from and how they get to your farm or business.

1. Most CHS Crude Comes From North America.
All crude oil flowing into the CHS refinery at Laurel, Mont., and most of the crude fed into the National Cooperative Refinery Association (NCRA) facility at McPherson, Kan. (CHS is a 75 percent owner), comes from the United States and Canada.

Sweet and Sour Crude

Crude oil varies in viscosity and sulfur content. More viscous crudes are called “heavy.” Those with higher sulfur contents are “sour,” and those with low sulfur are “sweet.” Heavy, sour crudes take more processing — and cost more — to turn into fuel.

“We invested in processing so we can use cheaper crudes,” explains Galen Menard, vice president, supply and trading, NCRA, reducing costs by up to $5 per barrel.