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1、2022ANNUAL REPORTTABLE OF CONTENTSPRESIDENT AND CEO LETTER 1OPERATIONS OVERVIEW 4CORE VALUES 6FINANCIAL HIGHLIGHTS 7SUSTAINABILITY 8BOARD OF DIRECTORS 12LEADERSHIP TEAM 13On the cover:Industrial Hygienist Kristen Brickner working to protect the health and safety of our peopleFROM THE PRESIDENT AND C
2、EOFellow Shareholders,Throughout a highly volatile year in global energy markets,Marathon Petroleum Corporation(MPC)demonstrated significant progress on our three strategic pillars,and we delivered on our commitments to performance,optimization and value creation.Executing on our operating,commercia
3、l and financial objectives,combined with a strong macro-economic environment,led to superior total shareholder returns in 2022 of 87%.At the same time,we continued to deepen our environmental,social and governance(ESG)efforts to drive long-term benefits for our business and stakeholders.In 2022,we l
4、everaged structural improvements we made in our commercial and operational execution to meet robust customer demand and capture strong margin opportunities.Our commitment to safe,reliable and environmentally sound operations enabled us to run our refining system at 96%utilization for the year,which
5、included operating at full utilization in the second quarter,when demand for the transportation fuels we manufacture was highest.MPC generated$16.4 billion of cash from operations in 2022.We returned nearly$12 billion to shareholders through share repurchases during the year,bringing total repurchas
6、es between May 2021 and the end of 2022 to almost$17 billion.Demonstrating our commitment to a secure,competitive and growing dividend,in November,we increased MPCs quarterly dividend by 30%.Challenging ourselves to lead in sustainable energy,we made significant progress on our Martinez Renewables f
7、acility and further optimized our Dickinson Renewables facility;we added two substantial 2030 goals to our emissions reduction targets;and we set a new industry record for the number of refineries certified for superior energy efficiency performance in one year through the U.S.Environmental Protecti
8、on Agencys(EPA)ENERGY STAR program.MPC 2022 ANNUAL REPORT1DEVELOPING ENDURING CAPABILITIESIn early 2020,we introduced our three strategic pillars:strengthening the competitive position of our assets,fostering a low-cost culture,and improving our commercial performance.Since then,they have become a f
9、oundational part of MPCs DNA,aligning our efforts to increase profitability and drive long-term value creation.We continue to be committed to these three strategic pillars today,because they address foundational aspects of our business that are within our control.While there is more to do,I am very
10、proud of our progress in these areas,which was reflected in our 2022 performance.Weve achieved and sustained cost reductions while never compromising the safety of our employees or assets,made purposeful moves to strengthen our portfolio,and implemented commercial and operational improvements that c
11、an deliver incremental value into the future.Importantly,while weve positioned ourselves for the future over the last few years,weve remained grounded in our Core Values,which guide us to hold steadfast in our commitment to safe and environmentally responsible operations,to find and create shared va
12、lue,and to set and hold ourselves accountable to high expectations.STRENGTHENING THE COMPETITIVE POSITION OF OUR ASSETSIn September,we completed the formation of our Martinez Renewables joint venture with Neste,which enhances the value of the project to convert our idled Martinez,California,refinery
13、 into a renewable fuels facility.The facility is expected to ramp up to produce 730 million gallons per year of renewable fuels by the end of 2023,with pretreatment capabilities expected to come online midyear 2023.At our Dickinson,North Dakota,renewable diesel facility,we optimized operations to ac
14、commodate more advantaged feedstocks,which lower the carbon intensity of the fuels we produce and further improve its economic potential.In midstream,segment adjusted EBITDA grew 7%year over year,and the strength and stability of our logistics capabilities helped us navigate market fluctuations.MPLX
15、 advanced several organic growth projects in the Permian Basin and remained a source of growing distributions for MPC and other unitholders.In November,MPLX raised its quarterly distribution by 10%.At this current level,MPC is expected to receive approximately$2 billion of annual distributions from
16、MPLX.CONTINUED CAPITAL AND COST DISCIPLINEOur success embedding a low-cost culture across the company enabled us to sustain our previously achieved$1.5 billion of structural cost reduction.We remain focused on achieving operational excellence by reducing costs within our control,improving efficiency
17、,driving operational improvements and being disciplined in capital allocation.We also worked hard to mitigate higher energy input costs throughout the year,and we believe our sustained,structural cost reductions help us to more readily adapt to market fluctuations.We continue to build upon our Focus
18、 on Energy(FOE)program,which uses key performance indicators to guide energy management and promote energy efficiency across our refineries.In 2022,FOE-related initiatives led to more than$50 million in energy cost savings for the year,while avoiding 31,700 metric tons of carbon dioxide-equivalent e
19、missions per month.IMPROVING COMMERCIAL PERFORMANCEOver the past 18 months,we have meaningfully changed our commercial approach across the company and strengthened our teams.To unlock value,we have empowered our people to optimize across our integrated system,more effectively leverage our scale and
20、proximity to key supply sources and demand hubs,and improve product placement.A near-term focus has been securing advantaged renewable feedstocks as we continue to advance our renewable fuels production capabilities.This includes exploring joint venture opportunities and strategic alliances within t
21、he renewable fuels value chain,as well as looking to expand upon the partnerships weve built with Neste and ADM.In June,our Green Bison Soy Processing joint venture with ADM began construction of North Dakotas first dedicated soybean processing plant.By the seasonal harvest of 2023,it is expected to
22、 begin supplying approximately 600 million pounds a year of locally advantaged,refined soybean oil exclusively to MPC,helping us further optimize feedstock sourcing for renewable diesel production at our Dickinson facility.We continued to progress our Galveston Bay STAR project,which we expect to co
23、mplete in the first quarter of 2023.The remaining scope of this strategic project is targeted to increase crude oil processing capacity by 40,000 barrels per calendar day,improve residual upgrading capacity by 17,000 barrels per calendar day,enhance diesel recovery,and enable the facility to process
24、 more advantaged crude oil.OUR PATH TO LEADING IN SUSTAINABLE ENERGYAcross our integrated system,we are meeting the energy needs of today while investing in an energy-diverse future.Our approach to sustainability,which we apply across the components of ESG,is key to our success in this effort.We con
25、tinue to focus on positioning MPC to lead in an energy-diverse world by strengthening the resiliency of our business through reducing our carbon footprint and conserving natural resources;innovating for the future by investing in renewables and emerging technologies;and embedding sustainability in d
26、ecision-making and in how we engage our stakeholders.To help drive advancement,we have set meaningful targets to reduce greenhouse gas(GHG)emissions,methane emissions and freshwater intensity.We believe our continued progress demonstrates a tangible FROM THE PRESIDENT AND CEOMPC 2022 ANNUAL REPORT2p
27、ath to achieving these milestones.In 2022,we established a goal to reduce our absolute Scope 3,category 11 GHG emissions to 15%below 2019 levels by 2030,becoming the first large downstream company to set an absolute Scope 3 target.We also expanded our existing goal for reducing methane emissions int
28、ensity across our natural gas gathering and processing business,creating a new long-range target of lowering intensity 75%from 2016 levels by 2030.Similarly,to ensure we have the diversity of thought necessary to shape our future,we continue to include a diversity,equity and inclusion(DE&I)component
29、 in the metrics that determine our annual bonus compensation.Established in 2021,we were the first U.S.independent refiner to link a DE&I metric to executive and employee compensation.We also remain focused on being a good neighbor in our communities through meaningful relationships with key stakeho
30、lders to understand needs and concerns,define priorities and pursue shared goals.In 2022,the company invested more than$20 million in the communities where we live and work as well as in the broader causes that united many of us,and our employees contributed more than$4 million in additional support
31、.We continue to allocate significant growth capital to low carbon projects,particularly around increasing our production of renewable fuels and natural gas.In fact,MPC is projected to become one of the largest global producers of renewable diesel in early 2024,and MPLX assets currently process about
32、 10%of the natural gas in the United States.MPC and MPLX are also actively involved in public-private alliances to explore and develop pathways for emerging opportunities around carbon capture,utilization and sequestration(CCUS),as well as hydrogen energy production and utilization.LOOKING FORWARD i
33、n 2023,Im more optimistic than ever about MPCs evolving role in meeting the worlds need for reliable,affordable and responsibly produced energy.We anticipate that demand recovery for our products will continue and global supply constraints will persist in 2023.Our strategic pillars and financial pri
34、orities remain foundational,supporting our resiliency through near-term economic and geopolitical uncertainties.We will continue to focus our attention on how we run the business,always striving to be well-positioned to create value for our stakeholders regardless of the markets tailwinds or turbule
35、nce.Our goal is to position MPC as the refiner of choice,generating the most cash through cycle,and delivering superior returns to our shareholders,with our steadfast commitment to returning capital.Our achievements are a testament to the skills,dedication and adaptability of our people,who are enth
36、usiastic about the opportunities ahead for our company.Our workforce demonstrated tremendous effort in 2022 to meet demand for our products,to safely maintain and operate our assets and to support many value-creating programs and strategies that are critical for our long-term success.I am proud to l
37、ead MPC,and I am thankful and grateful for the work our people do each day to deliver value for our business and our shareholders.Thank you for supporting our company.Sincerely,Michael J.Hennigan President and Chief Executive OfficerMPC 2022 ANNUAL REPORT3APPROX.19,000 MILES OF PIPELINE WE OWN,LEASE
38、 OR HAVE AN OWNERSHIP INTEREST IN2.9MILLIONBARRELS PER CALENDAR DAY OF CRUDE OIL REFINING CAPACITY40.3 MILLIONBARRELS OF TERMINAL STORAGE CAPACITY537 TRANSPORT TRUCKS OWNED AND OPERATED96%REFINING UTILIZATION IN 2022319VESSELS AND BARGES OWNED AND OPERATED THROUGH MARINE BUSINESSAPPROX.8,400 NORTH A
39、MERICAN RETAIL&MARKETING LOCATIONS12BILLION STANDARD CUBIC FEET PER DAY OF NATURAL GAS PROCESSING CAPACITY2.4 BILLIONGALLONS OF RENEWABLE FUEL DELIVERED IN 2022852,000BARRELS PER DAY OF NATURAL GAS LIQUID FRACTIONATION CAPACITY APPROX.12,800 RAIL TANK CARS WE OWN,LEASE AND OPERATE2STRONGBRANDSMARATH
40、ON AND ARCOMPC 2022 ANNUAL REPORT4OPERATIONS OVERVIEWMPLX Owned Marine FacilityMPLX Natural GasProcessing Complex(c)MPLX Refining Logistics AssetMPLX Owned and Part-Owned Light Product TerminalMPLX Owned Asphalt/Heavy Oil TerminalMPLX Gathering SystemMPC Owned and Part-Owned Light Product TerminalMP
41、C RefineryMPC Marketing AreaMPC/MPLX Pipeline(a)MPC Owned and Part-OwnedMarine FacilityMPC Renewable Diesel FacilityCavernMartinez Renewable Fuels ProjectVirent(b)Ethanol Facility(joint venture with The Andersons)MPC Owned Asphalt/Heavy Oil TerminalMPC Renewable Feedstock Processing FacilityNote:Ill
42、ustrative representation of asset mapAs of Dec.31,2022(a)Includes MPC/MPLX owned and operated lines,MPC/MPLX interest lines operated by others and MPC/MPLX operated lines owned by others.(b)Wholly owned subsidiary of MPC working to commercialize the conversion of biobased feedstocks into renewable f
43、uels and chemicals.(c)Includes MPLX owned and operated natural gas processing complexes.MPC 2022 ANNUAL REPORT5At Marathon Petroleum,were in the business of enhancing lifes possibilities.Well-established values guide the way we treat each other and all our stakeholders,and we believe that how we per
44、form our work is just as important as the work we perform.CORE VALUESINTEGRITY Set high expectations for ourselves and build trust in each other,with business partners,shareholders and the communities where we work and live Say what were going to do and then do itRESPECT Treat everyone professionall
45、y,with courtesy,honesty and trust Consider how other peoples ideas can improve what we do and encourage everyone to openly share their perspectives,ideas and concernsINCLUSION Value diversity in culture,background,perspective and experiences Strive to provide our employees with a collaborative,suppo
46、rtive and inclusive work environment where they can maximize their full potential for personal and business successCOLLABORATION Actively partner with our stakeholders to find and create shared value,making a positive difference together Foster constructive,solution-oriented dialogues Genuinely list
47、en to one another and seek out perspectives different from our ownSAFETY AND ENVIRONMENTAL STEWARDSHIP Protect our people and the world we all share Aim for an accident-free,incident-free workplace Commit to safe and environmentally responsible operations MPC 2022 ANNUAL REPORT6FINANCIAL HIGHLIGHTSD
48、ELIVERING ON OUR COMMITMENTSOver the past year,our company rose to the challenge of meeting robust market demand,while continuing to make significant progress in our strategic areas of focus.Maintaining a strong balance sheet was foundational to our success and continues to underpin our financial pr
49、iorities and enable execution of our strategy.Strong operating performance,improved commercial execution and disciplined capital management helped generate superior returns in 2022.RETURNING CAPITAL TO SHAREHOLDERSIn October 2022,we fulfilled the$15 billion return of capital commitment made at the t
50、ime of our Speedway sale,having repurchased approximately 30%of outstanding shares as of the program commencement in May 2021.MPC repurchased more than$17 billion of company shares between May 2021 and the end of January 2023.In addition,we increased our quarterly dividend by 30%in the fourth quarte
51、r.DISCIPLINED CAPITAL SPENDING Consistent with the past few years,our projected capital spending amount for 2023 reflects our continuing focus on strict capital discipline.We remain steadfast in our commitment to maintain the safety,integrity and reliability of our assets and to evaluate growth and
52、margin-enhancing opportunities.In September,we closed on our 50/50 Martinez Renewables joint venture with Neste,which enhances the value of the project by reducing MPCs capital commitment and improving the feedstock slate.The joint venture leverages both partners strengths and creates a platform for
53、 future collaboration.Refining Utilization:96%Full-year Capture*:98%Sustained Structural Cost Reductions:$1.5 billionTotal Shareholder Return*:87%Total Capital Returned to Shareholders:$13.2 billionOperating Cash Flow:$16.4 billion2,505SHARE BUYBACKS*$BILLIONSCompleted Share RepurchasesRemaining Sha
54、re Repurchase Authorization17.47.6TRADITIONALLOW CARBONMAINTENANCEOTHER2023 CAPITAL SPENDING OUTLOOK*Capture reflects the percentage of our Refining&Marketing(R&M)Margin Indicator realized in our reported R&M Margin.*Total shareholder return calculated as based on MPCs share price increase from Dec.
55、31,2021 to Dec.31,2022 with dividends received reinvested in MPC shares.*Does not include capital spending associated with MPLX or capitalized interest.Capitalized spending for MPLX in 2023 is expected to be$950 million net of reimbursements.*Data reflects May 1,2021 to Jan.31,202320222022DIVIDENDS
56、PER SHARE202220212020$2.49$2.32$2.32SUSTAINING AND GROWTH CAPITAL*$MILLIONS202020191,4711,0661,6241,300202120222023OutlookMPC 2022 ANNUAL REPORT7100%SCORE ON CORPORATE EQUALITY INDEXSUSTAINABILITYWe are challenging ourselves to lead in sustainable energy by strengthening the resiliency of our operat
57、ions,innovating for the future,and embedding sustainability in our decision-making and how we engage our people and many stakeholders.We apply this approach across environmental,social and governance(ESG)components as we execute our strategic priorities and view it as a key to our success.One indica
58、tion of our progress is recognition we have received from prominent ESG rating organizations.STRENGTHENING RESILIENCYOver the past decade,and particularly over the past four years,we have diversified our portfolio and advanced a business model that supports the energy evolution and reductions in our
59、 overall carbon intensity.For example,when MPC formed in 2011,over 90%of our production was attributed to petroleum-based fuels.Since that time,we have diversified our business to include lower-carbon natural gas,renewable fuels,and petrochemical feedstocks,which now make up approximately 45%of our
60、processed volumes.In 2022,we were the first among U.S.independent refiners to establish a 2030 target to reduce absolute Scope 3-Category 11 greenhouse gas(GHG)emissions.This goal added to our existing targets for reducing Scope 1&2 GHG emissions intensity,for lowering methane emissions intensity,an
61、d for lowering our freshwater withdrawal intensity.We maintained focus on devising and implementing improvements throughout the year to make steady progress toward achieving these objectives.Dow Jones Sustainability North America Index for fourth straight yearReflects GHG targets,clean tech strategy
62、 and corporate behavior practicesRanked a“Best Place to Work”for LGBTQ+by Human Rights Campaign for third straight yearMEMBER OF S&P GLOBAL DOW JONES SUSTAINABILITY INDICESOBTAINED“A”RATING FROM MSCI16 petroleum refineries|3 JV ethanol facilities|1 biodiesel facility13 petroleum refineries|4 JV etha
63、nol facilities|2 renewable diesel facilities*2 renewable pretreatment facilities|1 JV soybean crushing facility*20222019*Includes the in-progress conversion of the Martinez refinery to a renewable diesel facility.*Construction of the Green Bison facility is expected to be completed in 2023.(1)Additi
64、onal information regarding our targets,including calculation methodologies,can be found in our 2022 Perspectives on Climate-Related Scenarios report,available at (2)Progress shown through 2021.Scope 1 and 2 GHG Emissions Intensity(1)(tonnes CO2e/thousand boe input)Absolute Scope 3 Category 11 GHG Em
65、issions(1)(tonnes CO2e)MPLX G&P Methane Emissions Intensity(1)(methane-scf/natural gas input-scf)Freshwater Withdrawal Intensity(1)(2)(megaliters/million boe input)2030 Goal Progress 2030 Goal Progress 2030 Goal Progress 2030 Goal 2025 Goal Progress30%reduction of scope 1 and 2 GHG emissions intensi
66、ty by 2030 from 2014 levels25%Reduce methane emissions intensity 50%by 2025and 75%by 2030from 2016 levels51%15%reduction of scope 3-category 11 GHG emissions by 2030 from 2019 levels5%20%reduction of freshwater withdrawal intensity by 2030 from 2016 levels15%MPC 2022 ANNUAL REPORT8SUSTAINABILITYFor
67、the third consecutive year,our energy efficiency performance earned MPC the ENERGY STAR Partner of the Year Sustained Excellence Award from the U.S.Environmental Protection Agency(EPA).MPC also set an industry record with six refineries receiving 2022 EPA ENERGY STAR certifications the most refineri
68、es to ever earn this honor from the EPA in a single year.*Compared to prior operations as a petroleum refinery.INNOVATING FOR THE FUTUREMPC is one of the largest marketers of renewable fuels in the U.S.,and we continue to sharpen our focus on reducing the carbon intensity of our operations and the p
69、roducts we manufacture while enhancing business performance.This includes striving to increase our production and delivery of renewable fuels,seeking ways to expand the use of renewable energy in our operations,and deploying emerging technologies that reduce environmental impact.Our subsidiary Viren
70、t continued to demonstrate and optimize its proprietary BioForming process,which is ready for commercialization.Virent is creating new market opportunities as an enabler for 100%sustainable aviation fuel(SAF)and renewable gasoline with longer-term options for renewable chemicals.1 billion gallons le
71、sswater used annually70%reduction in criteria air pollutantsMartinez Renewable Fuels Project Benefits*60%reduction in GHG emissionsIn addition to completing the formation of our joint venture with Neste in September,the first phase of the Martinez renewable fuels facility has reached mechanical comp
72、letion and is progressing start-up activities.The facility is expected to ramp up to produce 730 million gallons per year of renewable fuels by the end of 2023,with pretreatment capabilities expected to come online in the second half of 2023.In June 2022,we broke ground on the Green Bison Soy Proces
73、sing facility,a joint venture project with ADM,and the first facility of its kind in North Dakota.When complete,the approximately$350 million complex will feature state-of-the-art automation technology with an anticipated processing capacity of 150,000 bushels of soybeans per day.By harvest 2023,the
74、 facility is expected to be producing approximately 600 million pounds of refined vegetable oil annually,which will be supplied exclusively to MPC as a feedstock for renewable diesel.MPC 2022 ANNUAL REPORT9SUSTAINABILITYExecuting our Diversity,Equity and Inclusion StrategyContribute to our thriving
75、communitiesBuild a diverse workforceCreate a more inclusive cultureBUILD A DIVERSE WORKFORCEStreamlining our approach to managing diverse candidate slatesEstablishing new relationships with diversity recruiting partnersCREATE A MORE INCLUSIVE CULTUREIncreasing support to employee networks to capture
76、 new and emerging opportunitiesEnhancing our leadership development programs with an emphasis on inclusivityCONTRIBUTE TO OUR THRIVING COMMUNITIESIdentifying and communicating goals for diverse supplier commitmentsFurther aligning our community investments with our DE&I commitments EMBEDDING SUSTAIN
77、ABILITYAligned with our commitment to protect the health and safety of our people and our communities;responsibly manage our social impacts;promote diversity,equity and inclusion(DE&I);and maintain accountable and transparent governance,we are intentional about how we include and embrace sustainabil
78、ity in decision-making and engagement.Engaged and Energized WorkforceFor our people to thrive and to attract the most highly skilled and diverse employee base,we seek to advance an inclusive culture where everyone feels valued and confident to be themselves.Our employee networks are fundamental to a
79、chieving this goal.More than 4,000 employees belong to our 69 employee network chapters across 16 states.Focused on seven populations Asian,Black,Disability,Hispanic,LGBTQ+,Veterans and Women these networks are led by employees with guidance and active involvement from executive leadership sponsors,
80、and serve to connect colleagues across the company,provide opportunities for personal and professional development and help facilitate community involvement.Guided by a dedicated team and supported by leadership companywide,MPCs DE&I program is based on a four-pillar strategy of building awareness,i
81、ncreasing representation,ensuring success and applying measurement and accountability.To execute this strategy,in 2022 we focused on near-term action plans.Stakeholder EngagementCreating shared value with our range of stakeholders our people,business partners,customers,communities,governments and sh
82、areholders starts with working to understand their goals,perspectives and concerns and incorporating their feedback into our business strategies.We have several dedicated forums that help to facilitate internal and external engagement on a variety of topics,including Community Advisory Panels,a Trib
83、al Affairs Working Group and site-specific Stakeholder Engagement Plans.As our business and stakeholder interests evolve,we continue to adapt and expand our approach to engagement.We strategically focus our charitable community investments on three core areas:workforce development,sustainability and
84、 thriving communities.Engaging with stakeholders from different backgrounds helps us pursue projects that create a positive,measurable impact and build partnerships across diverse organizations.We encourage employees to support the causes and community efforts that are important to them by matching
85、their donations to eligible organizations and funding volunteer incentive awards.In 2022,the company invested more than$20 million in the communities where we live and work as well as broader causes.Our employees contributed more than$4 million in additional support.The company also raised more than
86、$3.5 million for charitable causes through fundraising events,many of which engaged our business partners,customers and suppliers.MPC 2022 ANNUAL REPORT10Culture of Safety and Environmental Stewardship Shaped by our Core Values,we approach our work with the highest commitment to safety and a focus o
87、n caring for the environment.We are unwavering in our pursuit of an accident-free,incident-free workplace.Our personal safety performance continues to trend better than the U.S.refining average.Accountable and Transparent GovernanceOur corporate impacts,risks and opportunities are identified and man
88、aged by company leadership with oversight from our Board.An additional layer of oversight exists with our Enterprise Risk Management Program.ESG is embedded across multiple Board committees to which MPCs directors bring a range of backgrounds,critical skills,perspectives and expertise.As of year-end
89、 2022,10 of MPCs 11 directors were independent,as defined by New York Stock Exchange guidelines,with an independent chairman of the board.Each director attended 100%of board and committee meetings throughout the year.In January 2023,MPC announced a new independent board member,Toni Townes-Whitley.As
90、 part of our broader commitment to transparent governance,we maintain regular dialogue with investor stewardship teams,and our ESG reporting and disclosures are aligned with TCFD,SASB,CDP and GRI Core.*We provide robust information on political engagement and lobbying through regular updates on our
91、website.Additionally,MPC was the first independent U.S.downstream energy company to link a DE&I metric to compensation,and 20%of our annual cash bonus program is comprised of ESG metrics.SUSTAINABILITY85505552200212022 Companywide Tier 3&4 Designated Environmental Incidents Count2022 Refi
92、ning OSHA Recordable Rate Incidents/200,000 hours2022 Refining Process Safety Event(PSE)Rate Tier 1&Tier 2 Events/200,000 hoursU.S.Refining AverageMPC Refining200220.40.50.50.280.220.340.31Tier 1 PSETier 2 PSE200220.180.080.160.040.040.060.090.14Designated Environmental Inciden
93、ts include three categories of environmental incidents:releases to the environment(air,land or water),environmental permit exceedances and agency enforcement actions.Based on the U.S.Bureau of Labor Statistics data.PSEs are unplanned or uncontrolled releases of a material from a process.The PSE rate
94、 is the count of events per 200,000 hours of work.Tier 1 PSEs are the most serious type.*CDP:Carbon Disclosure Project;GRI:Global Reporting Initiative;SASB:Sustainability Accounting Standards Board;TCFD:Task Force on Climate-related Financial DisclosuresMPC 2022 ANNUAL REPORT11BOARD OF DIRECTORSEvan
95、 BayhSenior Advisor,Apollo Global Management-Corporate Governance and Nominating Committee Member-Sustainability and Public Policy Committee ChairJonathan Z.CohenFounder,Chief Executive Officer and President,Hepco Capital Management,LLC-Audit Committee Vice Chair-Corporate Governance and Nominating
96、Committee MemberEdward G.GalanteRetired Senior Vice President and Management Committee Member,ExxonMobil Corporation-Compensation and Organization Development Committee Chair-Sustainability and Public Policy Committee MemberJ.Michael SticeProfessor,The University of Oklahoma-Audit Committee Member-C
97、orporate Governance and Nominating Committee Vice Chair-Sustainability and Public Policy Committee MemberSusan TomaskyRetired President,AEP Transmission,American Electric Power-Audit Committee Chair-Sustainability and Public Policy Committee MemberToni Townes-Whitley Former President,U.S.Regulated I
98、ndustries,Microsoft Corporation-Audit Committee Member-Compensation and Organization Development Committee MemberKim K.W.RuckerFormer Executive Vice President,General Counsel and Secretary,Andeavor-Sustainability and Public Policy Committee MemberFrank M.SempleRetired Chairman,President and Chief Ex
99、ecutive Officer,MarkWest Energy Partners,L.P.-Audit Committee Member-Compensation and Organization Development Committee MemberMichael J.HenniganPresident and Chief Executive Officer,Marathon Petroleum Corporation-Sustainability and Public Policy Committee MemberJohn P.Surma Retired Chairman and Chi
100、ef Executive Officer,United States Steel Corporation-Non-Executive Chairman of the BoardAbdulaziz F.Alkhayyal Retired Senior Vice President,Industrial Relations,Saudi Aramco-Audit Committee Member-Compensation and Organization Development Committee Member-Sustainability and Public Policy Committee V
101、ice ChairCharles E.BunchRetired Chairman of the Board and Chief Executive Officer,PPG Industries,Inc.-Compensation and Organization Development Committee Member-Corporate Governance and Nominating Committee ChairSteven A.DavisIn memoriam1958-2022MPC 2022 ANNUAL REPORT12LEADERSHIP TEAMJohn J.QuaidExe
102、cutive Vice President and Chief Financial OfficerMPLX GP LLCGregory S.FloerkeExecutive Vice President and Chief Operating OfficerMPLX GP LLCShawn M.LyonSenior Vice President,Logistics and StorageMPLX GP LLCKristina A.KazarianVice President,Finance and Investor RelationsKelly S.NieseVice President,Tr
103、easuryDavid R.HeppnerSenior Vice President,Strategy and Business DevelopmentMaryann T.MannenExecutive Vice President and Chief Financial OfficerMichael J.HenniganPresident and Chief Executive Officer,and DirectorSuzanne GagleGeneral Counsel and Senior Vice President,Government AffairsTimothy J.AydtE
104、xecutive Vice President,RefiningBrian K.ParteeSenior Vice President,Global Clean ProductsEhren D.PowellSenior Vice President andChief Digital OfficerC.Kristopher HagedornSenior Vice President and ControllerRick D.HesslingSenior Vice President,Global FeedstocksFiona C.LairdChief Human Resources Offic
105、er and Senior Vice President,CommunicationsMolly R.BensonVice President,Chief Securities,Governance&Compliance Officer and Corporate SecretaryJames R.WilkinsSenior Vice President,Health,Environment,Safety and SecurityKelly D.WrightVice President and ControllerMPLX GP LLCMPC 2022 ANNUAL REPORT13 UNIT
106、ED STATES SECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-K(Mark One)ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended December 31,2022 ORTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934Fo
107、r the transition period from to Commission file number 001-35054 Marathon Petroleum Corporation(Exact name of registrant as specified in its charter)Delaware27-1284632(State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification No.)539 South Main Street,Findlay,OH 458
108、40-3229(Address of principal executive offices)(Zip code)(419)422-2121(Registrants telephone number,including area code)Securities Registered pursuant to Section 12(b)of the ActTitle of each class Trading symbol(s)Name of each exchange on which registeredCommon Stock,par value$.01MPCNew York Stock E
109、xchangeSecurities registered pursuant to Section 12(g)of the Act:NoneIndicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section
110、 15(d)of the Act.Yes No Indicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months and(2)has been subject to such filing requirements for the past 90 days.Yes No Indicate by ch
111、eck mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes No Ind
112、icate by check mark whether the registrant is a large accelerated filer,accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See definition of“large accelerated filer,”“accelerated filer,”“smaller reporting company,”and“emerging growth company”in Rule 1
113、2b-2 of the Exchange Act:Large Accelerated Filer Accelerated Filer Non-accelerated Filer Smaller reporting company Emerging growth company If an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revise
114、d financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control over financial reporting under Section 404(b)of the Sa
115、rbanes-Oxley Act(15 U.S.C.7262(b)by the registered public accounting firm that prepared or issued its audit report.If securities are registered pursuant to Section 12(b)of the Act,indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction
116、of an error to previously issued financial statements.Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrants executive officers during the relevant recovery period pursuant to
117、 240.10D-1(b).Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Act).Yes No The aggregate market value of Common Stock held by non-affiliates as of June 30,2022 was approximately$42.1 billion.This amount is based on the closing price of the registrants
118、Common Stock on the New York Stock Exchange on June 30,2022.Shares of Common Stock held by executive officers and directors of the registrant are not included in the computation.The registrant,solely for the purpose of this required presentation,has deemed its directors and executive officers to be
119、affiliates.There were 445,546,907 shares of Marathon Petroleum Corporation Common Stock outstanding as of February 16,2023.Documents Incorporated By ReferencePortions of the registrants proxy statement relating to its 2023 Annual Meeting of Shareholders,to be filed with the Securities and Exchange C
120、ommission pursuant to Regulation 14A under the Securities Exchange Act of 1934,are incorporated by reference to the extent set forth in Part III,Items 10-14 of this Report.Table of Contents PagePART IItem 1.Business4Item 1A.Risk Factors17Item 1B.Unresolved Staff Comments29Item 2.Properties29Item 3.L
121、egal Proceedings36Item 4.Mine Safety Disclosures37PART IIItem 5.Market for Registrants Common Equity,Related Stockholder Matters and Issuer Purchases of Equity Securities38Item 7.Managements Discussion and Analysis of Financial Condition and Results of Operations39Item 7A.Quantitative and Qualitativ
122、e Disclosures about Market Risk65Item 8.Financial Statements and Supplementary Data68Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure123Item 9A.Controls and Procedures123Item 9B.Other Information123Item 9C.Disclosures Regarding Foreign Jurisdictions that Pr
123、event Inspections123PART IIIItem 10.Directors,Executive Officers and Corporate Governance124Item 11.Executive Compensation124Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters125Item 13.Certain Relationships and Related Transactions,and Director In
124、dependence125Item 14.Principal Accountant Fees and Services125PART IVItem 15.Exhibits and Financial Statement Schedules126Signatures130Unless otherwise stated or the context otherwise indicates,all references in this Annual Report on Form 10-K to“MPC,”“us,”“our,”“we”or the“Company”mean Marathon Petr
125、oleum Corporation and its consolidated subsidiaries.Glossary of TermsThroughout this report,the following company or industry specific terms and abbreviations are used:ANSAlaska North Slope crude oil,an oil index benchmark priceASCAccounting Standards CodificationASUAccounting Standards UpdateATBArt
126、iculated tug bargesbarrelOne stock tank barrel,or 42 U.S.gallons liquid volume,used in reference to crude oil or other liquid hydrocarbons.CARBCalifornia Air Resources BoardCARBOBCalifornia Reformulated Gasoline Blendstock for Oxygenate BlendingCBOBConventional Blending for Oxygenate BlendingEBITDAE
127、arnings Before Interest,Tax,Depreciation and Amortization(a non-GAAP financial measure)EPAU.S.Environmental Protection AgencyESGEnvironmental,social and governanceGAAPAccounting principles generally accepted in the United StatesGHGGreenhouse gasLCFSLow Carbon Fuel StandardLCMLower of cost or marketL
128、IFOLast in,first outLLSLouisiana Light Sweet crude oil,an oil index benchmark pricembblsThousands of barrelsmbpdThousand barrels per daymbpcdThousand barrels per calendar dayMEHMagellan East Houston crude oil,an oil index benchmark priceMMcf/dOne million cubic feet of natural gas per dayMMBtuOne mil
129、lion British thermal unitsNGLNatural gas liquids,such as ethane,propane,butanes and natural gasolineNYMEXNew York Mercantile ExchangeNYSENew York Stock ExchangeOSHAU.S.Occupational Safety and Health AdministrationOTCOver-the-CounterPP&EProperty,plant and equipmentRFS2Revised Renewable Fuel Standard
130、program,as required by the Energy Independence and Security Act of 2007RINRenewable Identification NumberSECU.S.Securities and Exchange CommissionSOFRSecured overnight financing rateSTARSouth Texas Asset RepositioningULSDUltra-low sulfur dieselUSGCU.S.Gulf CoastUSTUnderground storage tankVIEVariable
131、 interest entityVPPVoluntary Protection ProgramWTIWest Texas Intermediate crude oil,an oil index benchmark price1Disclosures Regarding Forward-Looking StatementsThis Annual Report on Form 10-K,particularly Item 1.Business,Item 1A.Risk Factors,Item 3.Legal Proceedings,Item 7.Managements Discussion an
132、d Analysis of Financial Condition and Results of Operations and Item 7A.Quantitative and Qualitative Disclosures about Market Risk,includes forward-looking statements that are subject to risks,contingencies or uncertainties.You can identify forward-looking statements by words such as“anticipate,”“be
133、lieve,”“commitment,”“could,”“design,”“estimate,”“expect,”“forecast,”“goal,”“guidance,”“intend,”“may,”“objective,”“opportunity,”“outlook,”“plan,”“policy,”“position,”“potential,”“predict,”“priority,”“project,”“prospective,”“pursue,”“seek,”“should,”“strategy,”“target,”“will,”“would”or other similar exp
134、ressions that convey the uncertainty of future events or outcomes.Forward-looking statements include,among other things,statements regarding:future financial and operating results;ESG goals and targets,including those related to GHG emissions,diversity and inclusion and ESG reporting;our plans to ac
135、hieve our ESG goals and targets and to monitor and report progress thereon;future levels of capital,environmental or maintenance expenditures,general and administrative and other expenses;expected savings from the restructuring or reorganization of business components;the success or timing of comple
136、tion of ongoing or anticipated maintenance projects or transactions;business strategies,growth opportunities and expected investments;consumer demand for refined products,natural gas,renewables and NGLs;the timing,amount and form of future capital return transactions at MPC or MPLX;andthe anticipate
137、d effects of actions of third parties such as competitors,activist investors,federal,foreign,state or local regulatory authorities,or plaintiffs in litigation.Our forward-looking statements are not guarantees of future performance,and you should not rely unduly on them,as they involve risks,uncertai
138、nties and assumptions that we cannot predict.Material differences between actual results and any future performance suggested in our forward-looking statements could result from a variety of factors,including the following:general economic,political or regulatory developments,including inflation,cha
139、nges in governmental policies relating to refined petroleum products,crude oil,natural gas,NGLs or renewables,or taxation;further impairments;the regional,national and worldwide availability and pricing of refined products,crude oil,natural gas,renewables,NGLs and other feedstocks;disruptions in cre
140、dit markets or changes to credit ratings;the adequacy of capital resources and liquidity,including availability,timing and amounts of free cash flow necessary to execute business plans and to effect any share repurchases or to maintain or increase the dividend;the potential effects of judicial or ot
141、her proceedings on the business,financial condition,results of operations and cash flows;volatility in or degradation of general economic,market,industry or business conditions as a result of the COVID-19 pandemic,other infectious disease outbreaks,natural hazards,extreme weather events,the military
142、 conflict between Russia and Ukraine,other conflicts,inflation,rising interest rates or otherwise;compliance with federal and state environmental,economic,health and safety,energy and other policies and regulations or enforcement actions initiated thereunder;adverse market conditions or other risks
143、affecting MPLX;refining industry overcapacity or under capacity;changes in producer customers drilling plans or in volumes of throughput of crude oil,natural gas,NGLs,refined products,other hydrocarbon-based products or renewables;non-payment or non-performance by our customers;changes in the cost o
144、r availability of third-party vessels,pipelines,railcars and other means of transportation for crude oil,natural gas,NGLs,feedstocks,refined products and renewables;the price,availability and acceptance of alternative fuels and alternative-fuel vehicles and laws mandating such fuels or vehicles;poli
145、tical and economic conditions in nations that consume refined products,natural gas,renewables and NGLs,including the United States and Mexico,and in crude oil producing regions,including the Middle East,Russia,Africa,Canada and South America;2actions taken by our competitors,including pricing adjust
146、ments,the expansion and retirement of refining capacity and the expansion and retirement of pipeline capacity,processing,fractionation and treating facilities in response to market conditions;completion of pipeline projects within the United States;changes in fuel and utility costs for our facilitie
147、s;accidents or other unscheduled shutdowns affecting our refineries,machinery,pipelines,processing,fractionation and treating facilities or equipment,means of transportation,or those of our suppliers or customers;acts of war,terrorism or civil unrest that could impair our ability to produce refined
148、products,receive feedstocks or to gather,process,fractionate or transport crude oil,natural gas,NGLs,refined products or renewables;political pressure and influence of environmental groups and other stakeholders upon policies and decisions related to the production,gathering,refining,processing,frac
149、tionation,transportation and marketing of crude oil or other feedstocks,refined products,natural gas,NGLs or other hydrocarbon-based products or renewables;labor and material shortages;our ability to successfully achieve our ESG goals and targets within the expected timeframe,if at all;the costs,dis
150、ruption and diversion of managements attention associated with campaigns commenced by activist investors;personnel changes;andthe other factors described in Item 1A.Risk Factors.We undertake no obligation to update any forward-looking statements except to the extent required by applicable law.3PART
151、IItem 1.BusinessOVERVIEWMarathon Petroleum Corporation(“MPC”)has 135 years of history in the energy business,and is a leading,integrated,downstream energy company.We operate the nations largest refining system with approximately 2.9 million barrels per day of crude oil refining capacity and believe
152、we are one of the largest wholesale suppliers of gasoline and distillates to resellers in the United States.We distribute our refined products through one of the largest terminal operations in the United States and one of the largest private domestic fleets of inland petroleum product barges.In addi
153、tion,our integrated midstream energy asset network links producers of natural gas and NGLs from some of the largest supply basins in the United States to domestic and international markets.Our operations consist of two reportable operating segments:Refining&Marketing and Midstream.Each of these segm
154、ents is organized and managed based upon the nature of the products and services it offers.Refining&Marketing refines crude oil and other feedstocks,including renewable feedstocks,at our refineries in the Gulf Coast,Mid-Continent and West Coast regions of the United States,purchases refined products
155、 and ethanol for resale and distributes refined products,including renewable diesel,through transportation,storage,distribution and marketing services provided largely by our Midstream segment.We sell refined products to wholesale marketing customers domestically and internationally,to buyers on the
156、 spot market,to independent entrepreneurs who operate primarily Marathon branded outlets and through long-term supply contracts with direct dealers who operate locations mainly under the ARCO brand.Midstream transports,stores,distributes and markets crude oil and refined products principally for the
157、 Refining&Marketing segment via refining logistics assets,pipelines,terminals,towboats and barges;gathers,processes and transports natural gas;and gathers,transports,fractionates,stores and markets NGLs.The Midstream segment primarily reflects the results of MPLX LP(“MPLX”).MPLX is a diversified,lar
158、ge-cap master limited partnership(“MLP”)formed in 2012 that owns and operates midstream energy infrastructure and logistics assets and provides fuels distribution services.As of December 31,2022,we owned the general partner of MPLX and approximately 65 percent of the outstanding MPLX common units.Co
159、rporate History and StructureMPC was incorporated in Delaware on November 9,2009 in connection with an internal restructuring of Marathon Oil Corporation(“Marathon Oil”).On May 25,2011,the Marathon Oil board of directors approved the spinoff of its Refining,Marketing&Transportation Business into an
160、independent,publicly traded company,MPC,through the distribution of MPC common stock to the stockholders of Marathon Oil on June 30,2011.Our common stock trades on the NYSE under the ticker symbol“MPC.”On October 1,2018,we acquired Andeavor.Andeavor shareholders received in the aggregate approximate
161、ly 239.8 million shares of MPC common stock valued at$19.8 billion and$3.5 billion in cash.Andeavor was a highly integrated marketing,logistics and refining company operating primarily in the Western and Mid-Continent United States.Our acquisition of Andeavor in 2018 substantially increased our geog
162、raphic diversification and the scale of our assets,which provides increased opportunities to optimize our system.On May 14,2021,we completed the sale of Speedway,our company-owned and operated retail transportation fuel and convenience store business,to 7-Eleven,Inc.(“7-Eleven”)for cash proceeds of$
163、21.38 billion($17.22 billion after cash-tax payments).This transaction resulted in a pretax gain of$11.68 billion($8.02 billion after income taxes),after deducting the book value of the net assets and certain other adjustments.OUR OPERATIONSRefining&MarketingRefineriesWe currently own and operate re
164、fineries in the Gulf Coast,Mid-Continent and West Coast regions of the United States with an aggregate crude oil refining capacity of 2,898 mbpcd.During 2022,our refineries processed 2,761 mbpd of crude oil and 190 mbpd of other charge and blendstocks.During 2021,our refineries processed 2,621 mbpd
165、of crude oil and 178 mbpd of other charge and blendstocks.Our refineries include crude oil atmospheric and vacuum distillation,fluid catalytic cracking,hydrocracking,catalytic reforming,coking,desulfurization and sulfur recovery units.The refineries process a wide variety of condensate and light and
166、 heavy crude oils purchased from various domestic and foreign suppliers.We produce numerous refined products,ranging from transportation fuels,such as reformulated gasolines,blend-grade gasolines intended for blending with ethanol and ULSD fuel,to heavy fuel oil 4and asphalt.Additionally,we manufact
167、ure NGLs and petrochemicals and propane.See the Refined Product Marketing section for further information about the products we produce.Our refineries are integrated with each other via pipelines,terminals and barges to maximize operating efficiency.The transportation links that connect our refineri
168、es allow the movement of intermediate products between refineries to optimize operations,produce higher margin products and efficiently utilize our processing capacity.Also,shipping intermediate products between facilities during partial refinery shutdowns allows us to utilize processing capacity th
169、at is not directly affected by the shutdown work.Following is a description of each of our refineries and their capacity by region.Gulf Coast Region(1,189 mbpcd)Garyville,Louisiana Refinery(596 mbpcd)Our Garyville refinery,which is one of the largest refineries in the U.S.,is located along the Missi
170、ssippi River in southeastern Louisiana between New Orleans,Louisiana and Baton Rouge,Louisiana.The Garyville refinery is configured to process a wide variety of crude oils into gasoline,distillates,NGLs and petrochemicals,heavy fuel oil,asphalt and propane.The refinery has access to the export marke
171、t and multiple options to sell refined products.Our Garyville refinery has earned designation as an OSHA VPP Star site.Galveston Bay,Texas City,Texas Refinery(593 mbpcd)Our Galveston Bay refinery is a combination of our former Texas City refinery and Galveston Bay refinery.The refinery is located on
172、 the Texas Gulf Coast southeast of Houston,Texas and can process a wide variety of crude oils into gasoline,distillates,NGLs and petrochemicals,heavy fuel oil and propane.The refinery has access to the export market and multiple options to sell refined products.Our cogeneration facility,which suppli
173、es the Galveston Bay refinery,currently has 1,055 megawatts of electrical production capacity and can produce 4.3 million pounds of steam per hour.Approximately 48 percent of the power generated in 2022 was used at the refinery,with the remaining electricity being sold into the electricity grid.Mid-
174、Continent Region(1,159 mbpcd)Catlettsburg,Kentucky Refinery(291 mbpcd)Our Catlettsburg refinery is located in northeastern Kentucky on the western bank of the Big Sandy River,near the confluence with the Ohio River.The Catlettsburg refinery processes sweet and sour crude oils,including production fr
175、om the nearby Utica Shale,into gasoline,distillates,asphalt,NGLs and petrochemicals,propane and heavy fuel oil.Our Catlettsburg refinery has earned designation as an OSHA VPP Star site.Robinson,Illinois Refinery(253 mbpcd)Our Robinson refinery is located in southeastern Illinois.The Robinson refiner
176、y processes sweet and sour crude oils into gasoline,distillates,NGLs and petrochemicals,propane and heavy fuel oil.The Robinson refinery has earned designation as an OSHA VPP Star site.Detroit,Michigan Refinery(140 mbpcd)Our Detroit refinery is located in southwest Detroit.It is the only petroleum r
177、efinery currently operating in Michigan.The Detroit refinery processes sweet and heavy sour crude oils into gasoline,distillates,asphalt,NGLs and petrochemicals,propane and heavy fuel oil.Our Detroit refinery has earned designation as an OSHA VPP Star site.El Paso,Texas Refinery(133 mbpcd)Our El Pas
178、o refinery is located east of downtown El Paso.The El Paso refinery processes sweet and sour crudes into gasoline,distillates,heavy fuel oil,propane,asphalt and NGLs and petrochemicals.St.Paul Park,Minnesota Refinery(105 mbpcd)Our St.Paul Park refinery is located along the Mississippi River southeas
179、t of St.Paul Park.The St.Paul Park refinery processes sweet and heavy sour crude and manufactures gasoline,distillates,asphalt,propane,heavy fuel oil and NGLs and petrochemicals.Canton,Ohio Refinery(100 mbpcd)Our Canton refinery is located south of Cleveland,Ohio.The Canton refinery processes sweet
180、and sour crude oils,including production from the nearby Utica Shale,into gasoline,distillates,asphalt,propane,NGLs and petrochemicals and heavy fuel oil.The Canton refinery has earned designation as an OSHA VPP Star site.5Mandan,North Dakota Refinery(71 mbpcd)Our Mandan refinery is located outside
181、of Bismarck,North Dakota.The Mandan refinery processes primarily sweet domestic crude oil from North Dakota and manufactures gasoline,distillates,propane,heavy fuel oil and NGLs and petrochemicals.Salt Lake City,Utah Refinery(66 mbpcd)Our Salt Lake City refinery is the largest in Utah and is located
182、 north of downtown Salt Lake City.The Salt Lake City refinery processes crude oil from Utah,Colorado,Wyoming and Canada to manufacture gasoline,distillates,heavy fuel oil,NGLs and petrochemicals and propane.West Coast Region(550 mbpcd)Los Angeles,California Refinery(363 mbpcd)Our Los Angeles refiner
183、y is located in Los Angeles County,near the Los Angeles Harbor.The Los Angeles refinery is the largest refinery on the West Coast and is a major producer of cleaner burning CARB fuels.The Los Angeles refinery processes heavy crude from Californias San Joaquin Valley and Los Angeles Basin,as well as
184、crudes from the Alaska North Slope,South America,West Africa and other international sources,and manufactures CARB gasoline and CARB diesel fuel,as well as conventional gasoline,distillates,NGLs and petrochemicals,heavy fuel oil and propane.Anacortes,Washington Refinery(119 mbpcd)Our Anacortes refin
185、ery is located north of Seattle on Puget Sound.The Anacortes refinery processes Canadian crude,domestic crude from North Dakota and the Alaska North Slope and international crudes to manufacture gasoline,distillates,heavy fuel oil,propane and NGLs and petrochemicals.Kenai,Alaska Refinery(68 mbpcd)Ou
186、r Kenai refinery is located on the Cook Inlet,southwest of Anchorage.The Kenai refinery processes mainly Alaska domestic crude,domestic crude from North Dakota,along with limited international crude and manufactures distillates,gasoline,heavy fuel oil,asphalt,propane and NGLs and petrochemicals.Plan
187、ned maintenance activities,or turnarounds,requiring temporary shutdown of certain refinery operating units,are periodically performed at each refinery.Refined Product YieldsThe following table sets forth our refinery production by product group for each of the last three years.(mbpd)202220212020Gaso
188、line(a)1,494 1,446 1,314 Distillates(a)1,079 965 905 NGLs and petrochemicals(a)178 250 244 Asphalt 89 91 81 Propane 70 52 51 Heavy fuel oil 73 31 28 Total 2,983 2,835 2,623(a)Product yields include renewable production.Crude Oil SupplyWe obtain the crude oil we refine through negotiated term contrac
189、ts and purchases or exchanges on the spot market.Our term contracts generally have market-related pricing provisions.The following table provides information on our sources of crude oil for each of the last three years.The crude oil sourced outside of North America was acquired from various foreign
190、national oil companies,production companies and trading companies.(mbpd)202220212020United States 1,895 1,890 1,650 Canada 539 445 442 Middle East and other international 327 286 326 Total 2,761 2,621 2,418 Our refineries receive crude oil and other feedstocks and distribute our refined products thr
191、ough a variety of channels,including pipelines,trucks,railcars,ships and barges.6Renewable Fuels The Dickinson,North Dakota,renewable fuels facility began operations at the end of 2020 and reached full design operating capacity in the second quarter of 2021.The facility has the capacity to produce 1
192、84 million gallons per year of renewable diesel from corn oil,soybean oil,fats and greases.The produced renewable diesel generates federal RINs and LCFS credits when sold in California or similar markets.These instruments are used to help meet our Renewable Fuel Standard and LCFS compliance obligati
193、ons as a petroleum fuel producer.On September 21,2022,MPC closed on the formation of the Martinez Renewable Fuels joint venture(the“Martinez Renewable joint venture”),a partnership structured as a 50/50 joint venture with Neste Corporation(“Neste”).Converting the Martinez facility from refining petr
194、oleum to manufacturing renewable fuels signals our strong commitment to producing a substantial level of lower carbon-intensity fuels in California.The facility is expected to ramp up to producing 730 million gallons per year by the end of 2023,with pretreatment capabilities coming online in 2023.Ou
195、r wholly owned subsidiary,Virent Inc.(“Virent”),operates an advanced biofuels facility in Madison,Wisconsin at which it is working to commercialize a process for converting biobased feedstocks into renewable fuels and chemicals.During 2022,Virent continued to advance its technology to commercializat
196、ion with demonstration activities in both the fuels and chemicals industries,including a demonstration flight with Gulfstream in a G650 aircraft in which one engine used 100 percent sustainable aviation fuel(“SAF”)that included Virents synthesized aromatic kerosene as a blending component to provide
197、 a 100 percent drop-in SAF that was fully compatible with todays jet fuel specifications.Additional demonstration projects included the introduction of bio-based polyester fabrics to applications in the airline,fashion and outdoor clothing industries.On December 14,2021,we finalized the formation of
198、 a joint venture with Archer-Daniels-Midland Company(“ADM”)for the production of soybean oil to supply rapidly growing demand for renewable diesel fuel.The joint venture,which is named Green Bison Soy Processing,LLC,will own and operate a soybean processing complex in Spiritwood,North Dakota,with AD
199、M owning 75 percent of the joint venture and MPC owning 25 percent.When complete in 2023,the Spiritwood facility will source and process local soybeans and supply the resulting soybean oil exclusively to MPC.The Spiritwood complex is expected to produce approximately 600 million pounds of refined so
200、ybean oil annually,enough feedstock for approximately 75 million gallons of renewable diesel per year.We hold an ownership interest in ethanol production facilities in Albion,Michigan;Logansport,Indiana;Greenville,Ohio and Denison,Iowa.These plants have a combined ethanol production capacity of appr
201、oximately 475 million gallons per year and are managed by our joint venture partner,The Andersons,Inc.(“The Andersons”).Refined Product SalesOur refined products are sold to independent retailers,wholesale customers,our brand jobbers and direct dealers.In addition,we sell refined products for export
202、 to international customers.As of December 31,2022,there were 7,209 brand jobber outlets in 38 states,the District of Columbia and Mexico where independent entrepreneurs primarily maintain Marathon-branded outlets.We also have long-term supply contracts for 1,172 direct dealer locations primarily in
203、 Southern California,largely under the ARCO brand.We believe we are one of the largest wholesale suppliers of gasoline and distillates to resellers and consumers within our market area.The following table sets forth our refined product sales volumes by product group for each of the last three years.
204、(mbpd)2022(a)2021(a)2020(a)Gasoline(b)1,870 1,834 1,669 Distillates(b)1,169 1,089 1,040 NGLs and petrochemicals(b)221 293 323 Asphalt 89 94 86 Propane 93 76 69 Heavy fuel oil 66 39 35 Total 3,508 3,425 3,222(a)Refined product sales include volumes marketed directly to end-users and trading/supply vo
205、lumes such as bulk sales to large unbranded resellers and other downstream companies.Marketed volumes directly to end users such as branded retail stations were 2,355 mbpd and 2,338 mbpd for the years ended December 31,2022 and 2021,respectively.(b)Sales include renewable products.7Refined Product S
206、ales Destined for ExportWe sell gasoline,distillates and asphalt for export,primarily out of our Garyville,Galveston Bay,Anacortes and Los Angeles refineries.The following table sets forth our refined product sales destined for export by product group for the past three years.(mbpd)202220212020Gasol
207、ine 105 154 110 Distillates 158 162 187 Other 52 55 43 Total 315 371 340 Gasoline and Distillates We sell gasoline,gasoline blendstocks and distillates(including No.1 and No.2 fuel oils,jet fuel,kerosene,diesel and renewable diesel)to wholesale customers,branded jobbers,direct dealers and in the spo
208、t market.In addition,we sell diesel fuel and gasoline for export to international customers.The demand for gasoline and distillates is seasonal in many of our markets,with demand typically at its highest levels during the summer months.NGLs and PetrochemicalsWe are a producer and marketer of NGLs an
209、d petrochemicals.Product availability varies by refinery and includes,among others,propylene,xylene,butane,benzene,toluene and cumene.We market these products domestically to customers in the chemical,agricultural and fuel-blending industries.In addition,we produce fuel-grade coke at our Garyville,D
210、etroit,Galveston Bay and Los Angeles refineries,which is used for power generation and in miscellaneous industrial applications,and anode-grade coke at our Los Angeles and Robinson refineries,which is used to make carbon anodes for the aluminum smelting industry.AsphaltWe have refinery-based asphalt
211、 production capacity of up to 141 mbpcd,which includes asphalt cements,polymer-modified asphalt,emulsified asphalt,industrial asphalts and roofing flux.We have a broad customer base,including asphalt-paving contractors,resellers,government entities(states,counties,cities and townships)and asphalt ro
212、ofing shingle manufacturers.We sell asphalt in the domestic and export wholesale markets via rail,barge and vessel.PropaneWe produce propane at all of our refineries.Propane is primarily used for home heating and cooking,as a feedstock within the petrochemical industry,for grain drying and as a fuel
213、 for trucks and other vehicles.Our propane sales are split approximately 80 percent and 20 percent between the home heating market and industrial/petrochemical consumers,respectively.Heavy Fuel OilWe produce and market heavy residual fuel oil or related components,including slurry,at all of our refi
214、neries.Heavy residual fuel oil is primarily used in the utility and ship bunkering(fuel)industries,though there are other more specialized uses of the product.Terminals and TransportationWe transport,store and distribute crude oil,feedstocks and refined products through pipelines,terminals and marin
215、e fleets owned by MPLX and third parties in our market areas.We own a fleet of transport trucks and trailers for the movement of refined products and crude oil.In addition,we maintain a fleet of leased and owned railcars for the movement and storage of refined products.The locations and detailed inf
216、ormation about our Refining&Marketing assets are included under Item 2.Properties and are incorporated herein by reference.Competition,Market Conditions and SeasonalityThe downstream petroleum business is highly competitive,particularly with regard to accessing crude oil and other feedstock supply a
217、nd the marketing of refined products.We compete with a number of other companies to acquire crude oil for refinery processing and in the distribution and marketing of a full array of refined products.We compete in four distinct markets for the sale of refined productswholesale,including exports,spot
218、,branded and retail distribution.Our marketing operations compete with numerous other independent marketers,integrated oil companies and high-volume retailers.We compete with companies in the sale of refined products to wholesale marketing customers,including private-brand marketers and large commer
219、cial and industrial consumers;companies in the sale of refined products in the spot market;and refiners or marketers in the supply of refined products to refiner-branded independent entrepreneurs.In addition,we compete with producers and marketers in other industries that supply alternative forms of
220、 energy and fuels to satisfy the requirements of our industrial,commercial and retail consumers.8Market conditions in the oil and gas industry are cyclical and subject to global economic and political events and new and changing governmental regulations.Our operating results are affected by price ch
221、anges in crude oil,natural gas and refined products,as well as changes in competitive conditions in the markets we serve.Price differentials between sweet and sour crude oils,ANS,WTI and MEH crude oils and other market structure impacts also affect our operating results.Demand for gasoline,diesel fu
222、el and asphalt is higher during the spring and summer months than during the winter months in most of our markets,primarily due to seasonal increases in highway traffic and construction.As a result,the operating results for our Refining&Marketing segment for the first and fourth quarters may be lowe
223、r than for those in the second and third quarters of each calendar year.Midstream The Midstream segment primarily includes the operations of MPLX,our sponsored MLP,and certain related operations retained by MPC.MPLXMPLX owns and operates a network of crude oil,natural gas and refined product pipelin
224、es and has joint ownership interests in crude oil,refined products and other pipelines.MPLX also owns and operates light products terminals,storage assets and maintains a fleet of owned and leased towboats and barges in support of fuels distribution on behalf of MPC.MPLXs assets also include natural
225、 gas gathering systems and natural gas processing and NGL fractionation complexes.MPC-Retained Midstream Assets and Investments We own four Jones Act product tankers,have ownership interests in several crude oil and refined products pipeline systems and pipeline companies and have an indirect owners
226、hip interest in an ocean vessel joint venture through our investment in Crowley Coastal Partners LLC(“Crowley Coastal Partners”).The locations and detailed information about our Midstream assets are included under Item 2.Properties and are incorporated herein by reference.Competition,Market Conditio
227、ns and SeasonalityOur Midstream operations face competition for natural gas gathering,crude oil transportation and in obtaining natural gas supplies for our processing and related services;in obtaining unprocessed NGLs for gathering,transportation and fractionation;and in marketing our products and
228、services.Competition for natural gas supplies is based primarily on the location of gas gathering systems and gas processing plants,operating efficiency and reliability,residue gas and NGL market connectivity,the ability to obtain a satisfactory price for products recovered and the fees charged for
229、the services supplied to the customer.Competition for oil supplies is based primarily on the price and scope of services,location of gathering/transportation and storage facilities and connectivity to the best priced markets.Competitive factors affecting our fractionation services include availabili
230、ty of fractionation capacity,proximity to supply and industry marketing centers,the fees charged for fractionation services and operating efficiency and reliability of service.Competition for customers to purchase our natural gas and NGLs is based primarily on price,credit and market connectivity.In
231、 addition,certain of our Midstream operations are subject to rate regulation,which affects the rates that our common carrier pipelines can charge for transportation services and the return we obtain from such pipelines.Our Midstream segment can be affected by seasonal fluctuations in the demand for
232、natural gas and NGLs and the related fluctuations in commodity prices caused by various factors such as changes in transportation and travel patterns and variations in weather patterns from year to year.REGULATORY MATTERSOur operations are subject to numerous laws and regulations,including those rel
233、ating to the protection of the environment.Such laws and regulations include,among others,the Clean Air Act(“CAA”)with respect to air emissions,the Clean Water Act(“CWA”)with respect to water discharges,the Resource Conservation and Recovery Act(“RCRA”)with respect to solid and hazardous waste treat
234、ment,storage and disposal,the Comprehensive Environmental Response,Compensation,and Liability Act(“CERCLA”)with respect to releases and remediation of hazardous substances and the Oil Pollution Act of 1990(“OPA-90”)with respect to oil pollution and response.In addition,many states where we operate h
235、ave similar laws.New laws are being enacted and regulations are being adopted on a continuing basis,and the costs of compliance with such new laws and regulations are very difficult to estimate until finalized.For a discussion of environmental capital expenditures and costs of compliance,see Item 7.
236、Managements Discussion and Analysis of Financial Condition and Results of Operations-Environmental Matters and Compliance Costs.For additional information regarding regulatory risks,see Item 1A.Risk Factors.9Rate RegulationSome of our existing pipelines are considered interstate common carrier pipel
237、ines subject to regulation by the Federal Energy Regulatory Commission(“FERC”)under the Interstate Commerce Act(the“ICA”),Energy Policy Act of 1992(“EPAct 1992”)and the rules and regulations promulgated under those laws.The ICA and FERC regulations require that tariff rates for oil pipelines,a categ
238、ory that includes crude oil and petroleum product pipelines,be just and reasonable and the terms and conditions of service must not be unduly discriminatory.The ICA permits interested persons to challenge newly proposed tariff rates or terms and conditions of service,or any change to tariff rates or
239、 terms and conditions of service,and authorizes FERC to suspend the effectiveness of such proposal or change for a period of time to investigate.If,upon completion of an investigation,FERC finds that the new or changed service or rate is unlawful,it is authorized to require the carrier to refund the
240、 revenues in excess of the prior tariff collected during the pendency of the investigation.An interested person may also challenge existing terms and conditions of service or rates and FERC may order a carrier to change its terms and conditions of service or rates prospectively.Upon an appropriate s
241、howing,a shipper may also obtain reparations,from a pipeline,for damages sustained as a result of rates or terms which FERC deemed were not just and reasonable.Such reparation damages may accrue from the complaint through the final order and during the two years prior to the filing of a complaint.EP
242、Act 1992 deemed certain interstate petroleum pipeline rates then in effect to be just and reasonable under the ICA.These rates are commonly referred to as“grandfathered rates.”Our rates for interstate transportation service in effect for the 365-day period ending on the date of the passage of EPAct
243、1992 were deemed just and reasonable and therefore are grandfathered.Subsequent changes to those rates are not grandfathered.New rates have since been established after EPAct 1992 for certain pipelines.FERC permits regulated oil pipelines to change their rates within prescribed ceiling levels that a
244、re tied to an inflation index.A carrier must,as a general rule,utilize the indexing methodology to change its rates.Cost-of-service ratemaking,market-based rates and settlement rates are alternatives to the indexing approach and may be used in certain specified circumstances to change rates.AirGHG E
245、missionsWe believe the advancement of public policy intended to address GHG emissions,climate change,and climate adaptation will continue,with the potential for further regulations that could affect our operations.Currently,legislative and regulatory measures to address GHG emissions are in various
246、phases of review,discussion or implementation.Reductions in GHG emissions could result in increased costs to(i)operate and maintain our facilities,(ii)install new emission controls at our facilities,(iii)capture the emissions from our facilities and(iv)administer and manage any GHG emissions program
247、s,including acquiring emission credits or allotments.In February 2021,the Interagency Working Group on the Social Cost of Greenhouse Gases published interim estimates of the social cost of carbon,methane and nitrous oxide(collectively,social cost of GHG emissions).In its proposed methane emission ru
248、les for the oil and natural gas sector,the EPA significantly increased the social cost of GHG emissions in the cost and benefit analysis for the proposed rule.A higher social cost could support more stringent GHG emission regulation in various rule makings from methane emissions to vehicle tailpipe
249、emissions.States are becoming active in regulating GHG emissions.These measures may include state actions to develop statewide or regional programs to report emissions and impose emission reductions.These measures may also include low-carbon fuel standards,such as the California program,or a state c
250、arbon tax.These measures could result in increased costs to operate and maintain our facilities,capital expenditures to install new emission controls and costs to administer any carbon trading or tax programs implemented.For example,California has enacted a cap-and-trade program.Much of the complian
251、ce costs associated with the California program are ultimately passed on to the consumer in the form of higher fuel costs.States are increasingly announcing aspirational goals to be net-zero carbon emissions by a certain date through both legislation and executive orders.To date,these states have no
252、t provided significant details as to achievement of these goals;however,meeting these aspirations will require a reduction in fossil fuel combustion and/or a mechanism to capture GHGs from the atmosphere.As a result,we cannot currently predict the impact of these potential regulations on our liquidi
253、ty,financial position,or results of operations.Other Air EmissionsIn 2021,the EPA announced it is reconsidering the National Ambient Air Quality Standards(“NAAQS”)for ozone and fine particulate matter.In January 2023,EPA published its proposal to lower the primary(health-based)fine particulate matte
254、r annual standard from its current level of 12.0 g/m3 to within the range of 9.0 to 10.0 g/m3.EPA has not yet announced its decision on reconsideration of the ozone NAAQS.Lowering of the NAAQS and subsequent designation as a nonattainment area could result in increased costs associated with,or resul
255、t in cancellation or delay of,capital projects at our or our customers facilities,or could require emission reductions that could result in increased costs to us or our customers.We cannot predict the effects of the various state implementation plan requirements at this time.10In California,the Gove
256、rning Board for the South Coast Air Quality Management District(“SCAQMD”)adopted Rule 1109.1 in November 2021,which establishes Best Available Retrofit Control Technology(“BARCT”)oxides of nitrogen(“NOx”)and carbon monoxide(“CO”)emission limits for combustion equipment at petroleum refineries.These
257、new requirements will replace the Regional Clean Air Incentives Market(“RECLAIM”)cap-and-trade program which has required a staged refinery-wide reduction of NOx emissions over the last several years and will result in additional emission reductions from our Los Angeles Refinery.Compliance with Rule
258、 1109.1 is being phased in through 2032 and will result in increased costs to operate and maintain our Los Angeles Refinery.WaterWe maintain numerous discharge permits as required under the National Pollutant Discharge Elimination System program of the CWA and have implemented systems to oversee our
259、 compliance with these permits.In addition,we are regulated under OPA-90,which,among other things,requires the owner or operator of a tank vessel or a facility to maintain an emergency plan to respond to releases of oil or hazardous substances.OPA-90 also requires the responsible company to pay resu
260、lting removal costs and damages and provides for civil penalties and criminal sanctions for violations of its provisions.We operate tank vessels and facilities from which spills of oil and hazardous substances could occur.We have implemented emergency oil response plans for all of our components and
261、 facilities covered by OPA-90 and we have established Spill Prevention,Control and Countermeasures plans for all facilities subject to such requirements.Some coastal states in which we operate have passed state laws similar to OPA-90,but with expanded liability provisions,that include provisions for
262、 cargo owner responsibility as well as ship owner and operator responsibility.On October 22,2019,EPA and the United States Army Corps of Engineers(“Army Corps”)published a final rule to repeal the 2015“Clean Water Rule:Definition of Waters of the United States”(“2015 Rule”),which amended portions of
263、 the Code of Federal Regulations to restore the regulatory text that existed prior to the 2015 Rule,effective December 23,2019.The rule repealing the 2015 Rule has been challenged in multiple federal courts.On April 21,2020,EPA and the Army Corps promulgated the Navigable Waters Protection Rule(“202
264、0 Rule”)to define“waters of the United States.”The 2020 Rule has been vacated by a federal court.On December 7,2021,EPA and the Army Corps issued a notice of proposed rulemaking with the stated purpose of repealing the 2020 Rule defining“waters of the United States”and adopting a rule largely based
265、upon the definition adopted in 1986 with some revisions based upon subsequent United States Supreme Court rulings,in particular Rapanos v.United States(2006)which produced two different tests for determining“waters of the United States,”the relatively permanent waters and significant nexus tests.A b
266、roader definition could result in increased cost of compliance or increased capital costs for construction of new facilities or expansion of existing facilities.In April 2020,the U.S.District Court in Montana vacated Nationwide Permit 12(“NWP 12”),which authorizes the placement of fill material in“w
267、aters of the United States”for utility line activities as long as certain best management practices are implemented.The decision was ultimately appealed to the United States Supreme Court,which partially reversed the district courts decision,temporarily reinstating NWP 12 for all projects except the
268、 Keystone XL oil pipeline.The Army Corps subsequently reissued its nationwide permit authorizations on January 13,2021,by dividing the NWP that authorizes utility line activities(NWP 12)into three separate NWPs that address the differences in how different utility line projects are constructed,the s
269、ubstances they convey,and the different standards and best management practices that help ensure those NWPs authorize only those activities that have no more than minimal adverse environmental effects.A challenge of the 2021 authorization is currently pending before the U.S.District Court for the Di
270、strict of Columbia(“D.D.C.”),after being transferred from the U.S.District Court for the District of Montana in August 2022,and the plaintiffs request the court vacate and remand the 2021 authorization.Also,a petition has been filed with the Army Corps asking it to revoke the 2021 authorization.The
271、Biden Administration could repeal or replace the 2021 authorization in a subsequent rulemaking.The repeal,vacatur,revocation or replacement of the 2021 authorization could impact pipeline construction and maintenance activities.As part of our emergency response activities,we have used aqueous film f
272、orming foam(“AFFF”)containing per-and polyfluoroalkyl substances(“PFAS”)chemicals as a vapor and fire suppressant.At this time,AFFFs containing PFAS are the only proven foams that can prevent and control a flammable petroleum-based liquid fire involving a large storage tank or tank containment area.
273、In May 2016,EPA issued lifetime health advisory levels(“HALs”)and health effects support documents for two PFAS substances-Perfluorooctanoic Acid(“PFOA”)and Perfluorooctane Sulfonate(“PFOS”).These HALs were updated in June 2022,when EPA also issued HALs for two additional PFAS substances.In February
274、 2019,EPA issued a PFAS Action Plan identifying actions it is planning to take to study and regulate various PFAS chemicals.EPA identified that it would evaluate,among other actions,(1)proposing national drinking water standards for PFOA and PFOS,(2)develop cleanup recommendations for PFOA and PFOS,
275、(3)evaluate listing PFOA and PFOS as hazardous substances under CERCLA,and(4)conduct toxicity assessments for other PFAS chemicals.EPA did not issue any further regulations for PFAS under the Trump administration.In October 2021,EPA updated the 2019 PFAS Action Plan.On December 5,2022,EPA issued to
276、states and EPA regional offices a memorandum providing guidance for addressing PFAS discharges in wastewater and stormwater.Also,EPA has indicated it intends to issue a notice of proposed rulemaking in 2023 that will establish national drinking water standards for PFOS and PFOA.Congress may also tak
277、e further action to regulate PFAS.We cannot currently predict the impact of potential statutes or regulations on our operations.11In addition,many states are actively proposing and adopting legislation and regulations relating to the use of AFFFs containing PFAS.Additionally,many states are using EP
278、A HALs for PFOS and PFOA and some states are adopting and proposing state-specific drinking water and cleanup standards for various PFAS,including but not limited to PFOS and PFOA.We cannot currently predict the impact of these regulations on our liquidity,financial position,or results of operations
279、.Solid WasteWe continue to seek methods to minimize the generation of hazardous wastes in our operations.RCRA establishes standards for the management of solid and hazardous wastes.Besides affecting waste disposal practices,RCRA also addresses the environmental effects of certain past waste disposal
280、 operations,the recycling of wastes and the regulation of USTs containing regulated substances.RemediationWe own or operate,or have owned or operated,certain convenience stores and other locations where,during the normal course of operations,releases of refined products from USTs have occurred.Feder
281、al and state laws require that contamination caused by such releases at these sites be assessed and remediated to meet applicable standards.Penalties or other sanctions may be imposed for noncompliance.The enforcement of the UST regulations under RCRA has been delegated to the states,which administe
282、r their own UST programs.Our obligation to remediate such contamination varies,depending on the extent of the releases and the applicable state laws and regulations.A portion of these remediation costs may be recoverable from the appropriate state UST reimbursement funds once the applicable deductib
283、les have been satisfied.We also have ongoing remediation projects at a number of our current and former refinery,terminal and pipeline locations.Claims under CERCLA and similar state acts have been raised with respect to the clean-up of various waste disposal and other sites.CERCLA is intended to fa
284、cilitate the clean-up of hazardous substances without regard to fault.Potentially responsible parties for each site include present and former owners and operators of,transporters to and generators of the hazardous substances at the site.Liability is strict and can be joint and several.Because of va
285、rious factors including the difficulty of identifying the responsible parties for any particular site,the complexity of determining the relative liability among them,the uncertainty as to the most desirable remediation techniques and the amount of damages and clean-up costs and the time period durin
286、g which such costs may be incurred,we are unable to reasonably estimate our ultimate cost of compliance with CERCLA;however,we do not believe such costs will be material to our business,financial condition,results of operations or cash flows.On September 6,2022,EPA issued a notice of proposed rulema
287、king that would designate PFOS and PFOA as hazardous substances under CERCLA Section 102(a).Additional PFAS regulation could include the designation of PFAS as a RCRA hazardous waste.We cannot currently predict the impact of potential statutes or regulations on our remediation costs.Vehicle and Fuel
288、 RequirementsFuel Economy and GHG Emission Standards for VehiclesThe National Highway Traffic Safety Administration(“NHTSA”)establishes corporate average fuel economy(“CAFE”)standards for passenger cars and light trucks.In addition,EPA establishes carbon dioxide(“CO2”)emission standards for passenge
289、r cars and light trucks.At the direction of President Biden in his executive order setting a goal that 50 percent of all new passenger cars and light trucks sold in 2030 be zero emission vehicles,EPA and NHTSA have promulgated separate rules setting more stringent requirements for reductions through
290、 model year 2026.NHTSAs amended CAFE standards would increase in stringency from model year 2023 levels by eight percent annually for model years 2024-2025 and ten percent annually for model year 2026.EPAs revised model year 2023-2026 CO2 emission standards,which were finalized in December 2021,resu
291、lt in average fuel economy of 40 mpg in model year 2026.The NHTSA and EPA regulations have been challenged in court.Higher CAFE and CO2 emission standards for cars and light trucks reduce demand for our transportation fuels.In addition,California may establish per its Clean Air Act waiver authority
292、different standards that could apply in multiple states.EPA has issued a rule that reinstates Californias waiver for its Advanced Clean Car I program,which includes requirements for zero emission vehicle sales through 2025.Californias governor has also issued an executive order requiring sales of al
293、l new passenger vehicles in the state be zero-emission by 2035.The California Air Resources Board followed this executive order by finalizing its Advanced Clean Car II regulation,which bans the sale of internal combustion engine vehicles in California in 2035.Other states have issued,or may issue,ze
294、ro emission vehicle mandates.Renewable Fuels Standards and Low Carbon Fuel StandardsPursuant to the Energy Policy Act of 2005 and the EISA,Congress established a Renewable Fuel Standard(“RFS”)program that requires annual volumes of renewable fuel be blended into domestic transportation fuel.The stat
295、utory volumes apply through calendar year 2022.When EPA promulgates the annual renewable fuel volume obligations,EPA may reduce the statutory amount of renewable fuel that must be blended using its waiver or reset authority.After calendar year 2022,the statute gives EPA the authority to set the annu
296、al volumes.EPA has proposed annual volumes for 2023-2025 that increase the volume of renewable fuel that must be blended year over year.The greatest increase in annual volumes arises from EPAs proposal to approve a process in which electricity generated from renewable biomass used to fuel vehicles c
297、an generate a Renewable Identification Number(“eRIN”)under the RFS.12There is currently no regulatory method for verifying the validity of most RINs sold on the open market.We have developed a RIN integrity program to vet the RINs that we purchase,and we incur costs to audit RIN generators.Neverthel
298、ess,if any of the RINs that we purchase and use for compliance are found to be invalid,we could incur costs and penalties for replacing the invalid RINs.In addition to the federal Renewable Fuel Standards,certain states have,or are considering,promulgation of state renewable or low carbon fuel stand
299、ards.For example,California began implementing its LCFS in January 2011.In September 2015,the CARB approved the re-adoption of the LCFS,which became effective on January 1,2016,to address procedural deficiencies in the way the original regulation was adopted.The LCFS was amended again in 2018 with t
300、he current version targeting a 20 percent reduction in fuel carbon intensity from a 2010 baseline by 2030.CARB is currently holding a series of workshops to discuss potential changes to the LCFS,including increasing the stringency of the carbon intensity targets for 2030 and beyond.We incur costs to
301、 comply with LCFS programs,and these costs may increase if the cost of LCFS credits increases.In sum,the RFS has required,and may in the future continue to require,additional capital expenditures or expenses by us to accommodate increased renewable fuels use.We may experience a decrease in demand fo
302、r refined products due to an increase in combined fleet mileage or due to refined products being replaced by renewable fuels.Demand for our refined products also may decrease as a result of low carbon fuel standard programs or electric vehicle mandates.Safety MattersWe are subject to oversight pursu
303、ant to the federal Occupational Safety and Health Act,as amended(“OSH Act”),as well as comparable state statutes that regulate the protection of the health and safety of workers.We believe that we have conducted our operations in substantial compliance with regulations promulgated pursuant to the OS
304、H Act,including general industry standards,record-keeping requirements and monitoring of occupational exposure to regulated substances.We are also subject at regulated facilities to the Occupational Safety and Health Administrations Process Safety Management(“PSM”)and EPAs Risk Management Program(“R
305、MP”)requirements,which are intended to prevent or minimize the consequences of catastrophic releases of toxic,reactive,flammable or explosive chemicals.EPA has proposed revisions to its RMP regulation.The proposed revisions include a requirement that refineries with hydrofluoric acid alkylation unit
306、s perform a safer technologies and alternatives analysis as part of the process hazard analysis and to document the feasibility of inherent safety measures.The application of these regulations can result in increased compliance expenditures.In general,we expect industry and regulatory safety standar
307、ds to become more stringent over time,resulting in increased compliance expenditures.While these expenditures cannot be accurately estimated at this time,we do not expect such expenditures will have a material adverse effect on our results of operations.The DOT has adopted safety regulations with re
308、spect to the design,construction,operation,maintenance,inspection and management of our pipeline assets.These regulations contain requirements for the development and implementation of pipeline integrity management programs,which include the inspection and testing of pipelines and the correction of
309、anomalies.These regulations also require that pipeline operation and maintenance personnel meet certain qualifications and that pipeline operators develop comprehensive spill response plans.Tribal LandsVarious federal agencies,including EPA and the Department of the Interior,along with certain Nativ
310、e American tribes,promulgate and enforce regulations pertaining to oil and gas operations on Native American tribal lands where we operate.These regulations include such matters as lease provisions,drilling and production requirements,and standards to protect environmental quality and cultural resou
311、rces.In addition,each Native American tribe is a sovereign nation having the right to enforce certain laws and regulations and to grant approvals independent from federal,state and local statutes and regulations.These laws and regulations may increase our costs of doing business on Native American t
312、ribal lands and impact the viability of,or prevent or delay our ability to conduct,our operations on such lands.TRADEMARKS,PATENTS AND LICENSES Our Marathon and ARCO trademarks are material to the conduct of our refining and marketing operations.We currently hold a number of U.S.and foreign patents
313、and have various pending patent applications.Although in the aggregate our patents and licenses are important to us,we do not regard any single patent or license or group of related patents or licenses as critical or essential to our business as a whole.In general,we depend on our technological capa
314、bilities and the application of know-how rather than patents and licenses in the conduct of our operations.HUMAN CAPITALWe believe our employees are our greatest asset of strength,and our culture reflects the quality of individuals across our workforce.Our collaborative efforts,which include fosteri
315、ng an inclusive environment,providing broad-based development and mentorship opportunities,recognizing and rewarding accomplishments and offering benefits that support the well-being of our employees and their families,contribute to increased engagement and fulfilling careers.Empowering our people a
316、nd prioritizing 13accountability are also key components for developing MPCs high-performing culture,which is critical to achieving our strategic vision.Employee ProfileAs of December 31,2022,we employed approximately 17,800 people in full-time and part-time roles.Many of these employees provide ser
317、vices to MPLX,for which we are reimbursed in accordance with employee service agreements.Approximately 3,755 of our employees are covered by collective bargaining agreements.Safety We are committed to safe operations to protect the health and safety of our employees,contractors and communities.Our c
318、ommitment to safe operations is reflected in our safety systems design,our well-maintained equipment and by learning from our incidents.Part of our effort to promote safety includes our Operational Excellence Management System,which expands on the RC14001 scope,incorporates a Plan-Do-Check-Act conti
319、nual improvement cycle,and aligns with ISO 9001,incorporating quality and an increased stakeholder and process focus.Together,these components of our safety management system provide us with a comprehensive approach to managing risks and preventing incidents,illnesses and fatalities.Additionally,our
320、 annual cash bonus program metrics include several employee,process and environmental safety metrics.In 2022,MPC rolled back a majority of its COVID protocols which included the return of all employees to their respective work locations.We continue to monitor the situation and adapt our COVID protoc
321、ols as appropriate.Talent ManagementExecuting our strategic vision requires that we attract and retain the best talent.Recruiting and retention success requires that we effectively nurture new employees,providing opportunities for long-term engagement and career advancement.We also appropriately rew
322、ard high-performers and offer competitive benefits.Our Talent Acquisition team consists of three segments:Executive Recruiting,Experienced Recruiting and University Recruiting.The specialization within each group allows us to specifically address MPCs broad range of current and future talent needs,a
323、s well as devote time and attention to candidates during the hiring process.We value diverse perspectives in the workforce,and accordingly we seek candidates with a variety of backgrounds and experience.Our primary source of full-time,entry-level new hires is our intern/co-op program.Through our uni
324、versity recruiters,we offer college students who have completed their freshman year the opportunity to participate in our hands-on programs focused in areas of finance and accounting,marketing,engineering and IT.We provide a broad range of leadership training opportunities to support the development
325、 of leaders at all levels.Our programs,which are offered across the organization are a blended approach of business and leadership content,with many featuring external faculty.We utilize various learning modalities,such as visual,audio,print,tactile,interactive,kinesthetic,experiential and leader-te
326、aching-leader to address and engage different learning styles.We believe networking and access to our executive team are a key leadership success factor,and we incorporate these opportunities into all of our programs.Compensation and BenefitsTo ensure we are offering competitive pay packages in our
327、recruitment and retention efforts,we annually benchmark compensation,including base salaries,bonus levels and long-term incentive targets.Our annual bonus program is a critical component of our compensation,as it provides individual rewards for MPCs achievement against preset financial and ESG goals
328、,encouraging a sense of employee ownership.Employees in our senior leader pay grades,as well as most other leaders,receive long-term incentive awards annually to align their compensation to the interests of MPC shareholders and MPLX unitholders.We offer comprehensive benefits that are also benchmark
329、ed annually,including medical,dental and vision insurance for our employees,their spouses or domestic partners,and their dependents.We also provide retirement programs,life insurance,education assistance,family assistance,short-term disability and paid vacation and sick time.In addition,we provide g
330、enerous paid parental leave benefits for birth mothers and nonbirth parents;and parents who both work for the Company are each eligible for the benefit.Further,we have a substantial accrual cap for vacation banks and also award a significant number of college and trade school scholarships to high sc
331、hool senior children of our employees through the Marathon Petroleum Scholars Program.Both full-time and part-time employees are eligible for these benefits.InclusionOur company-wide Diversity,Equity and Inclusion(DE&I)program is guided by a dedicated DE&I team led by our Vice President Talent Acqui
332、sition and Diversity,Equity&Inclusion and supported by leadership company-wide.Our program is based on our four-pillar DE&I strategy of building awareness,increasing representation,ensuring success,and measurement and accountability.To execute our strategy,our near-term action plans are focused on b
333、uilding a diverse workforce,creating a more inclusive culture,and contributing to our thriving communities.We have employee networks focusing on seven populations:Asian,Black,Disability,Hispanic,LGBTQ+,Veterans and Women.Our employee networks have approximately 60 chapters across the company and all networks encourage ally membership.This broad support extends also to our leaders throughout MPC,wi