Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.
Posted: Mon Apr 14, 2008 7:32 am Post subject: Re: Refinery Outages and Pipeline Problems 2007 -08
Quote:
While in conversation with an industry source based in the USA over the weekend, a polymerupdate team member was informed that after a brief fire last Thursday night, a 45,000 barrels per day hydrocracker at BP Plc~s 265,000 barrels per day Los Angeles area refinery in Carson, California was shutdown on Friday. There were no reports of any injuries or off-site environmental impacts from the incident.
While in conversation with an industry source based in the USA over the weekend, a polymerupdate team member was informed that plans were in progress by Exxon Mobil Corp to shut an alkylation unit at its 150,000 barrels per day Los Angeles area refinery in Torrance, California for planned work on Sunday.
However, the more shrill warnings sound more like an attempt to put the union under pressure than anything likely to come to pass.
If this strike goes forward, there will be significant effects even here in the northeast US.
Quote:
Grangemouth Strike Hasn't Hit N Sea Forties Pipeline Yet - BP
DOW JONES NEWSWIRES
April 20, 2008 7:42 a.m.
LONDON (Dow Jones)--U.K. oil major BP PLC (BP) said Sunday plant shutdowns at the huge Grangemouth refinery in Scotland ahead of a two-day strike haven't yet impacted the Forties Pipeline System that feeds crude oil into the refinery.
"At the moment, there is no impact," said a spokesman for BP, which operates the Forties Pipeline System. The system moves around 700,000 barrels a day of crude from North Sea oil fields owned by BP and other companies to the refinery for processing and export.
"We're seeking clarification from Ineos and we're assessing the situation," the BP spokesman said.
Workers at Ineos PLC's 196,000 barrel a day Grangemouth refinery have called a 48-hour strike from Apr. 27 over changes to an employee pension plan, according to a statement from the Unite union.
Ineos, which has already begun shutting down the site for safety reasons ahead of the strike, warned the industrial action would close the plant for at least a month and could cause fuel shortages in Scotland and northern England as early as Apr. 25.
"This is a huge oil refinery - and they (Unite) know you can't just turn it on and off like a tap," Ineos CEO Tom Crotty said in a statement on the company's Web site.
A prolonged shutdown at Grangemouth could eventually close down some North Sea oil production which goes through the Scottish refinery through the Forties pipeline, but it is unclear at what point that will happen.
Joined: Oct 22, 2005 Posts: 704 Location: European Capital of Kulcha 2008
Posted: Sun Apr 20, 2008 10:13 am Post subject: Grangemouth
It seems as if the management has already started shutting down part of the site and, just like Russian armed forces mobilisation during WW1, once the process starts, it's difficult to stop without incurring procedural delays.
Of interest to me is whether the full strike action is actually allowed to proceed. Following the UK Fuel Protests (2000) the government introduced legislative measures to ensure future fuel security - which it can no doubt beef up even further with its post 9/11 anti-terrorist legislation. Additionally, PM Brown is at an all-time low with the electorate, and has been accused of indecisiveness and dithering - so expect some sort of 'tough' interventionist approach.
Anyway, here's the blurb from Ineos' website for the Grangemouth facility:
'Grangemouth, UK
The Grangemouth refinery and petrochemicals facility is the largest Innovene production centre. It is a deeply integrated site exploiting synergies between the refinery and the petrochemicals plants. Located 40 kilometres west of Edinburgh on a 500-acre site, the petrochemicals facility manufactures over 2 million tonnes of Chemicals products per annum and the Refinery has an annual capacity of 10 million tonnes. The site is strategically placed to make use of crude oil and natural gas liquids from the North Sea and transform them into petrol, fuel products and a range of Olefins and polymer products.
At the heart of the petrochemicals Grangemouth site are two ethylene crackers (G4 & KG), which produce the feed materials used by the other chemicals plants. The two units have an ethylene production capacity of 1 million tonnes per year between them. The G4 ethylene cracker (the fourth cracker at Grangemouth) can crack both gas and light distillate feedstocks, whereas the KG (Kinneil Gas) unit is a gas cracker using mainly ethane and propane as its raw materials. Grangemouth's ability to crack both liquid and gas feedstocks has significant commercial advantages.
The Grangemouth Refinery processes around 200,000 barrels per day of crude oil, producing more than 9 million litres of clean fuels every day. The refinery’s oil feedstock is mainly supplied by the neighbouring BP operated Kinneil oil and gas processing plant, but also via pipeline from the Finnart Ocean Terminal located 90 kilometers west of Grangemouth.
A portfolio of products
The products issued from the crackers, mainly ethylene and propylene, are short-chain molecules containing reactive double bonds. Plants downstream of the crackers either separate these chemicals or use their reactivity to produce further products. The resulting portfolio of products from the facility include ethylene, propylene, hydrogen, methane, ethane, propane, mixed butenes, ethanol, Innovex linear low density polyethylene, Rigidex high density polyethylene, polypropylene, butadiene, and benzene.
In turn, these products are used to produce plastic bottles and film for packaging, pipes, textiles, pharmaceuticals, home insulation, fuel additives, adhesives, paints and synthetic rubber for automotive tyres, belts and hoses.
Products are transported to customers around the UK and continental Europe by ship from Grangemouth docks, and by road to other plants. Pipelines also deliver products to customers nearby and to ports and factories across the UK. Ethylene surplus to Grangemouth's demand is exported using a pipeline grid, which stretches across Scotland and northern England. There is also storage for ethylene in salt caverns at Wilton on Teesside, 350 kilometres away, connected to Grangemouth via the pipeline system.
On the fuel side, Grangemouth Refinery is the sole refinery in Scotlland. It supplies most of the Scottish demand for Refined Products such as Petrol, Diesel, Jet, Heating Oil and Fuel Oil. Products can be distributed from the site’s own road tanker and rail terminals as well as through coasters feeding the Scottish distribution terminals. The excess production is exported through ocean going vessels.
A community partner
Innovene recognises its social and ethical responsibilities to the communities in which we operate. Our programmes are focused on the core themes of education, the environment, and local community development. Innovene supports sports and the arts, with emphasis in the areas of youth development and increasing accessibility for the disadvantaged. Our environmental programmes within the community focus on conservation and on building a better understanding of regional and global issues as well as to address local concerns close to our main operations.'
Joined: Oct 23, 2004 Posts: 5198 Location: New Jersey
Posted: Wed Apr 23, 2008 8:59 pm Post subject: Re: Refinery Outages and Pipeline Problems 2007 -08
Quote:
Key French oil, gas ports blocked by strikers: port authorities
Paris (Platts)--23Apr2008
Strikers have blocked oil and gas ports on France's Atlantic and
Mediterranean coasts, port authorities at Marseille and Nantes said Wednesday.
Staff walked out at ports in the Marseille hub, including the Fos and
Lavera oil terminals, and in the hub of Nantes-Saint Nazaire, at 6 am local time [04:00 GMT] and were due to stay out until 6 am Thursday, port authorities said.
The ports were not immediately able to detail the impact of the strike on oil and gas activities.
Strikes have been disrupting oil and gas traffic at Fos and Lavera,
Nantes and other French ports since April 14.
There are four oil refineries close to the Marseille hub, representing
about one-third of France's 1.95 million b/d refining capacity. They are Ineos' 220,000 b/d Lavera facility, Total's 158,000 b/d La Mede facility, ExxonMobil's 140,000b/d Fos-sur-Mer plant and Shell's 80,000 b/d facility.
Four other refineries are supplied by Fos and Lavera. They are: Shell and BP's 77,000 b/d Reichstett refinery in Alsace, east France; Total's 119,000 b/d Feyzin facility on the Rhone; Petroplus' 68,000 b/d Cressier refinery in Switzerland and MiRo's 285,000 b/d Karlsruhe plant in Germany.
Joined: Oct 23, 2004 Posts: 5198 Location: New Jersey
Posted: Fri Apr 25, 2008 7:50 am Post subject: Re: Refinery Outages and Pipeline Problems 2007 -08
Quote:
BP Texas City Gasoline Unit To Be Shut For Work Fri - Filing
DOW JONES NEWSWIRES
April 25, 2008 8:37 a.m.
NEW YORK (Dow Jones)--BP PLC (BP) planned to shut a key gasoline-producing unit at its Texas City, Texas refinery Friday, according to a state environmental filing.
The unit, a 65,000 barrel-a-day fluid catalytic cracker, was closed for "routine maintenance" according to the filing. Emissions associated with the shutdown necessitated the filing to the Texas Commission on Environmental Quality.
The report did not say when the unit would restart, or why the unit was being shut at this time. Generally, refiners perform maintenance on gasoline units during the winter, when demand for the fuel is lower. This unit is coming offline at a time when demand normally picks up as the summer driving season approaches. This year, gasoline margins for refiners have been lower than in the past few years, so refiners lack the incentive of good margins to keep all gasoline units producing at full rates.
Joined: Oct 23, 2004 Posts: 5198 Location: New Jersey
Posted: Sat Apr 26, 2008 8:27 am Post subject: Re: Refinery Outages and Pipeline Problems 2007 -08
DantesPeak wrote:
Quote:
BP Texas City Gasoline Unit To Be Shut For Work Fri - Filing
DOW JONES NEWSWIRES
April 25, 2008 8:37 a.m.
NEW YORK (Dow Jones)--BP PLC (BP) planned to shut a key gasoline-producing unit at its Texas City, Texas refinery Friday, according to a state environmental filing.
The unit, a 65,000 barrel-a-day fluid catalytic cracker, was closed for "routine maintenance" according to the filing. Emissions associated with the shutdown necessitated the filing to the Texas Commission on Environmental Quality.
The report did not say when the unit would restart, or why the unit was being shut at this time. Generally, refiners perform maintenance on gasoline units during the winter, when demand for the fuel is lower. This unit is coming offline at a time when demand normally picks up as the summer driving season approaches. This year, gasoline margins for refiners have been lower than in the past few years, so refiners lack the incentive of good margins to keep all gasoline units producing at full rates.
A tanker laden with 3,000 tonnes of diesel and kerosene docked in Aberdeen on Sunday evening. Two other tankers were also expected to dock on Sunday.
Additional shipments will also arrive in the Forth into the early part of next week, containing nearly 65,000 tonnes of fuel, to provide 10 days' worth.
A tanker laden with 3,000 tonnes of diesel and kerosene docked in Aberdeen on Sunday evening. Two other tankers were also expected to dock on Sunday.
Additional shipments will also arrive in the Forth into the early part of next week, containing nearly 65,000 tonnes of fuel, to provide 10 days' worth.
A tanker laden with 3,000 tonnes of diesel and kerosene docked in Aberdeen on Sunday evening. Two other tankers were also expected to dock on Sunday.
Additional shipments will also arrive in the Forth into the early part of next week, containing nearly 65,000 tonnes of fuel, to provide 10 days' worth.
65K * 7 = approx. 455K Barrels of fuel
I wonder where it would have gone otherwise.
For the last six weeks, the US has started to export diesel. If the situation is causing the US to export diesel, then you can assume that also exports intended for the US have been diverted elsewhere.
Quote:
NEW YORK, April 25 (Reuters) - U.S. Gulf Coast ultra low sulfur diesel differentials rose on Friday, adding to big gains on the futures market, as tight supplies in Europe and South America continued to fuel export demand.
Joined: Oct 23, 2004 Posts: 5198 Location: New Jersey
Posted: Tue May 06, 2008 4:31 pm Post subject: Re: Refinery Outages and Pipeline Problems 2007 -08
Quote:
BP Texas City Ultracracker Shut For Work-Source
DOW JONES NEWSWIRES
May 6, 2008 5:07 p.m.
NEW YORK (Dow Jones)--A third gasoline-producing unit was shut at BP PLC's (BP) Texas City refinery this week, according to a person familiar with the plant's operations.
The ultracracker was shut for welding and some minor repairs, the person said. The unit, a type of hydrocracker, has the ability to produce 63,000 barrels of product a day. The unit uses high-pressure and hydrogen to convert products from the fluid catalytic cracker to produce high-octane gasoline.
The shutdown comes as the plant has already shut two other gasoline-producing units, an 80,000 barrel-a-day fluid catalytic cracker and an alkylation unit. The fluid catalytic cracker was scheduled to restart May 9, but is still undergoing work. The alkylation unit was set to restart in mid-April, but that process has been delayed several times. The alkylation unit is currently undergoing testing, so that the restart can be planned, the person said.
All three units are down at a time when refiners are seeing low returns from gasoline. Diesel margins, comparatively, are quite high, owing to strong global demand. BP has opted to send some feedstock that would normally go to the ultracracker to the ultraformer, which will convert the material to diesel, the person said.
No date for restarting the hydrocracker has been set, the person said.
Posted: Tue May 06, 2008 4:38 pm Post subject: Re: Refinery Outages and Pipeline Problems 2007 -08
Good post, DP, the fate of that plant has been in the back of my mind for months, as you know.
What this is saying is that despite the series of optimistic press releases, this guy is still not ready to produce at anything approaching the nameplate rate.
Posted: Tue May 06, 2008 5:22 pm Post subject: Re: Refinery Outages and Pipeline Problems 2007 -08
DantesPeak wrote:
(...) This year, gasoline margins for refiners have been lower than in the past few years, so refiners lack the incentive of good margins to keep all gasoline units producing at full rates.(...)
lower but still positive? or lower and negative?
We're not even starting to fall off the cliff, and consumers are not even ready to pay the "fair price". Gasoline prices around the world should be higher, if not shortages due to refineries protecting their economical interests will become more common. _________________ anagami.net
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