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Oil-Gas Rise as Hurricane Ike heads Tx Refineries

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This topic contains 2 replies, has 2 voices, and was last updated by  Charles Randall 14 years, 6 months ago.

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  • #3426


    Oil, Gasoline Rise, as Hurricane Ike Heads for Texas Refineries

    By Mark Shenk
         Sept. 12, 2008 (Bloomberg)
    Crude oil and gasoline rose as
    Hurricane Ike headed toward the Texas coast, home to 23 percent
    of U.S. refining capacity, shutting almost all Gulf of Mexico oil
    production as it passes.
         About 18 percent of U.S. oil processing capacity has been
    shut before Ike makes landfall today. More than a quarter of U.S.
    crude production is based in the Gulf Coast region. Evacuations
    have halted 97 percent of Gulf oil output,
    the Minerals
    Management Service said yesterday.
         “The big concern is about the products because the
    refineries aren’t running,” said Tom Bentz, senior energy
    analyst at BNP Paribas in New York. “It remains to be seen how
    much damage will occur, but nobody wants to take chances.”
         Crude oil for October delivery rose $1.08, or 1.1 percent,
    to $101.95 a barrel at 9:54 a.m. on the New York Mercantile
    Exchange. Futures touched $100.10 yesterday, the lowest since
    April 2. Prices are up 28 percent from a year ago.
         “Without Ike crude prices would be below $100,” Bentz
         Ike’s eye was 230 miles (370 kilometers) southeast of
    Galveston, Texas, and moving west-northwest at 13 miles per hour,
    the National Hurricane Center said in an advisory at 7 a.m.
    Houston time today. The hurricane, which tripled in size in the
    Gulf of Mexico, was a Category 2 hurricane
    with sustained winds
    of 105 miles per hour.
         Gasoline for October delivery rose 10.12 cents, or 3.7
    percent, to $2.85 a gallon in New York. Heating oil climbed 3.75
    cents, or 1.3 percent, to $2.953 a gallon.
         “Refinery shutdowns are tightening up supplies for refined
    products,” said John Hummel, president of AIS Group, who manages
    a $525 million portfolio of futures, stocks and bonds in Wilton,
    Connecticut. “Storms are relatively transitory events. In the
    longer term prices will move on the underlying market

                              Refineries Shut

         Exxon Mobil Corp., the world’s largest oil company, began
    shutting its plant in Baytown, Texas, the largest in the U.S.,
    with capacity of 590,500 barrels of oil a day. The Irving, Texas-
    based company started shutting its 363,100 barrel-a-day Beaumont
    plant yesterday.
         Royal Dutch Shell Plc started shutting its 285,000 barrel-a-
    day Port Arthur, Texas, refinery because “of shifts in Hurricane
    Ike’s track,” the company said on its Web site.
         BP Plc is closing its 475,000 barrel-a-day refinery in Texas
    City. ConocoPhillips, the second-largest U.S. refiner, said its
    260,000 barrel-a-day refinery in Sweeny, Texas, is closing.
    LyondellBasell Industries, a unit of Access Industries Holdings
    LLC, is shutting its 299,300 barrel-a-day Houston refinery.
         Valero Energy Corp., the largest U.S. refiner, said it shut
    three Texas oil refineries with a combined capacity of 700,000
    barrels a day because of the danger posed by Hurricane Ike.

                             Hurricane Gustav

         Most offshore production platforms have been shut since
    Hurricane Gustav entered the Gulf last week.
         “The closures from Gustav and the looming closures from Ike
    are the focus of the market,” said Rick Mueller, director of oil
    markets at Energy Security Analysis Inc. in Wakefield,
    Massachusetts. “We’ve seen big draws in gasoline stocks, and
    even though the driving season is over there are worries that
    supply will fall to critical levels.”
         U.S. gasoline inventories dropped 13 percent to 187.9
    million barrels in the past seven weeks, according to the Energy
    Department. The peak gasoline-consumption period in the U.S.
    lasts from the Memorial Day weekend in late May to Labor Day in
    early September.

                              Weekend Trading

         CME Group Inc., the world’s biggest futures exchange, is
    extending New York Mercantile Exchange electronic trading hours
    this weekend because of Ike.
         The decision applies to energy trades on its ClearPort and
    Globex trading platforms, CME said in a release yesterday.
    Trading will begin at 10 a.m. New York time on Sept. 14 with the
    session closing on Sept. 15. Trading normally opens at 7 p.m.
         Brent crude oil for October settlement rose $1.33, or 1.4
    percent, to $98.97 a barrel on London’s ICE Futures Europe.
    Prices touched $96.99 yesterday, the lowest since March 4.
         Venezuelan President Hugo Chavez yesterday ordered the
    American ambassador to Caracas to leave and threatened to halt
    oil exports to the U.S.
    in a show of solidarity with his Bolivian
    counterpart Evo Morales. Chavez and Morales, who expelled the top
    U.S. envoy from his country two days ago, have accused the U.S.
    of backing opposition movements in their countries
         The U.S. imported an average 1 million barrels of crude oil
    a day from Venezuela during the first half of the year, making it
    the fifth biggest supplier to the U.S
    ., the Energy Department

  • #6592

    Charles Randall

    Oil Refineries in Texas Shut Down for Hurricane Ike (Table)

    By Nidaa Bakhsh and Aaron Clark
         Sept. 12, 2008 (Bloomberg)
    — Texas refineries are shutting down
    in preparation for Hurricane Ike, cutting fuel supply a week
    after Hurricane Gustav battered Louisiana and forced several
    plants to close.
         Forecasts that Ike will make landfall in Galveston late
    today or early tomorrow have caused at least 13 of the 16
    refineries in the region to start closing units, cutting about 19
    percent of U.S. refining capacity. The 16 plants have a
    processing capacity of 4.26 million barrels a day, or about 22
    percent of the U.S. total, according to government data.
         The following table shows the owner, name, location,
    processing capacity in barrels a day and latest information
    provided by refinery operators.


    Petrobras/Pasadena Refining   Shut.

    Total SA                      In the process of shutting.
    Port Arthur

    Valero Energy Corp.           In the process of shutting.
    Port Arthur

    Valero Energy Corp.           In the process of shutting.
    Texas City

    Valero Energy Corp.           In the process of shutting.

    ConocoPhillips                Started process of shutting
    Sweeny                        Sept. 10. Full shutdown was
    260,000                       expected late yesterday.

    BP Plc                        In the process of shutting.
    Texas City

    Exxon Mobil Corp.             Started shutdown process
    Baytown                       yesterday.

    Exxon Mobil Corp.             Started shutdown process
    Beaumont                      yesterday.

    Houston Refining LP           Started process of shutting
    Houston                       Sept. 10.

    Marathon Petroleum Corp.      Started process of shutting
    Texas City                    yesterday.

    Motiva/Shell                  Started shutdown process
    Port Arthur                   yesterday.

    Shell/Deer Park Refining      Started shutdown process
    Deer Park                     yesterday.

    Citgo Petroleum Corp.         Status unknown.
    Corpus Christi

    Flint Hills Resources LP      Refinery is operating.
    Corpus Christi

    Valero Energy Corp.           Operating at planned rates.
    Corpus Christi

  • #6591

    Charles Randall

    Update on Ike – between Gustav & Ike there is no way 2008 is going to exceed 2004 petcoke production levels making it 5th year in row that actual production has been a shortfall against increasing coking capacity.
    Heard that there was Panamax full coke from Pt Arthur that was racing to get ahead storm & now dead in water in path of storm.


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