Sky Quarry Inc. (NASDAQ:SKYQ) shares are trading higher Thursday after the company announced that it’s in discussions with crude oil companies in Nevada about increasing local production that could supply its Foreland Refinery.

Local Supply Talks, Oil Surge And Refinery Positioning Drive Gains

Sky Quarry said it is actively engaging with regional crude producers and leaseholders to evaluate opportunities to boost local production, noting that elevated oil prices have improved the economics for both drilling and refining. 

Brent crude recently climbed above $110 per barrel, reaching approximately $112 on March 30 and rising more than 50% since the start of the year, creating a more favorable environment for regional energy development. 

The company also highlighted tightening refining capacity across the Western U.S., with major California refinery closures expected to remove roughly 290,000 barrels per day of capacity, increasing reliance on alternative supply sources. 

Sky Quarry said its Foreland Refinery, the only operating refinery in Nevada, is positioned to benefit from rising demand for locally sourced fuel as regional supply constraints intensify. 

"Nevada is one of the most import-dependent fuel markets in the country," said CEO Marcus Laun.

Sky Quarry Shares Skyrocket

SKYQ Price Action: At the time of publication, Sky Quarry shares are trading 113.83% higher at $5.40, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.