Refinery Update
Posted by Heading Out on September 4, 2005 - 8:18pm
But four damaged Gulf Coast refiners look likely to remain shut for weeks or even months, taking with them more than 5 percent of U.S. capacity. . . . .Motiva Enterprises has begun to restart its 235,000 barrel a day Convent, La., refinery . . .Marathon Oil Corp. restarted its 245,000 barrel a day Garyville, La., refinery last week . . . .Motiva's 225,000 barrel a day Norco refinery and Valero Energy Corp.'s St. Charles refinery in Norco (may also restart this week).The prospects for the other four refineries that shut down ahead of the storm are more dire. . . .Chevron Corp.'s 325,000 barrel a day Pascagoula, Miss., facility and ConocoPhillips' 255,000 barrel a day Alliance refinery in Belle Chasse, La., have suffered "major damage," the Energy Department said.
Murphy Oil Corp.'s 120,000 barrel a day Meraux, La., refinery and the 183,000 barrel a day refinery at Chalmette, La., owned by ExxonMobil and Petroleos de Venezuela SA, suffered water damage, the DOE said. Murphy has said the flooding is a few feet deep.
In good news, the article reports that the Mississipi River has been re-opened for oil tankers as far as Baton Rouge, but only one-way. And the LOOP is up to 75% capacity.
Technorati Tags: peak oil, oil, Katrina, Hurricane Katrina, gas prices
With all the attention on Katrina, has anyone heard about the latest attack in Iraq, with the headline: "Oil exports from Kirkuk halted after bomb blast: 19 policemen shot dead"?
Here's the link: http://www.dawn.com/2005/09/04/int2.htm
In Iraq the Kirkut area facilities come under attack on frequent basis, so an attack is not that unusual, but the timing of same with Katrina damage might be significant. Certainly those seeking to use oil as a weapon have been handed a significant opportunity by the storm, so it would make sense to assume the threat level is very high at present.
Its for this reason that I assume IEA members are authorizing the release of so much of their own reserves for US use - not so much to plug the holes left by Katrina but create a buffer in case of significant attacks elsewhere -- whether they affect the US directly or not.
While the Iraq problem is serious, we get around 600,000 bd from there, it is ongoing (supply from there has dropped from over 2 mbd down to the increasingly optimistic looking 1.5 mbd. That is not what the IEA is all about and I would doubt that the reserves could be used for this. However increased production from elsewhere might be. Except that there is not a whole lot of spare production in the world right now. As we go into the 4th Quarter it has become more common over the past few years to draw down reserves to help immediate production meet the overall demand. This year immediate production will likely now be around 1 mbd below last year from GOMEX, and if you add in some of the depletion numbers and possible losses from terrorist attacks in the ME, current reports, from some of the Washington pundits, that we are going to get through this without problem are going to prove to be overly optimiztic.
"Yesterday, Invest.94L was designated in the southwest Atlantic. Over the past 6 hours, it has tracked to the west-southwest (258°) to 25.3N 78.7W. Its current intensity rating is 1.0. (10:42 est)
Unfortunately, based on a combination of the model guidance and historic tropical climatology, this system has high probability of threatening U.S. landfall and will likely reach at least tropical storm strength at some point. Hurricane strength is possible.
Most of the models take this system across Florida or Georgia. A few recurve it. However, the evolving synoptic situation tends to argue against recurvature for this system. In an extreme case, it could try to escape before being pulled back toward the United States ala Hurricane Dawn (1972). Given its current motion, I don't believe that scenario will play out.
Historic climatology--going back to 1940 for a somewhat larger sample--reveals that 4/5 (80%) tropical cyclones that developed in the 23.3N-27.3N/76.7W-80.7W region eventually made U.S. landfall. There is some chance that this system could well track across Florida into the Gulf of Mexico. Both the BAMS and GFDL have a particularly disturbing track.
For now, I believe:
oil 69.57%
gas 54.13%