Sky Quarry, Nevada's only refinery operator, noted Nevada's multiple oil and gas leasing and drilling approvals from the federal government as progress toward in-state crude oil production on Tuesday, citing its 5,000 b/d refinery as a "logistical advantage" for the state.
In a news release, Sky Quarry highlighted a flurry of oil and gas leases completed by the Bureau of Land Management in the first half of 2026, which included over 15 parcels of land spanning 30,168 acres in the state. The company also noted two "significant" federal and state approved oil exploration wells in Railroad Valley and North Diamond Valley, describing the projects as "important steps toward accessing Nevada's petroleum potential."
Sky Quarry's 5,000-b/d Foreland refinery is located in Railroad Valley on the east side of Nevada, where it produces diesel, vacuum gas oil, naphtha and liquid paving asphalt from crude oil sourced from Nevada and Utah. The company announced beginning refining operations in June, anticipating a production restart in July, OPIS previously reported.
Sky Quarry has consistently progressed in developing the Foreland refinery, which has historically experienced little crude oil production. In April, the refiner said it was exploring avenues to secure crude oil from federal lands with roughly 1.4 billion bbl of "technically recoverable" oil resources based on research from the 2025 U.S. Geological Survey, OPIS previously reported.
