Oil refineries are shutting down in the wake of rainfall and flooding from Hurricane Harvey in southeastern Texas, US.
The damage could mean a loss of more than 1 million barrels per day in refining capacity just in the Houston and Galveston, Texas, areas — that's not including hundreds of thousands of more barrels in the Corpus Christi, Texas, area.
The Houston area has seen 24-34 inches of rainfall. Flash flood watches are in effect for more than 11 million people, and another 10-20 inches of rainfall is possible over the next 72 hours.
Analysts said the refinery outages could last for weeks or months if workers find significant damage due to flooding at the facilities. While refineries in Corpus Christi appear to have emerged relatively unscathed after Harvey made landfall as a hurricane, the picture is not yet clear for the Houston area, said Tom Kloza, global head of energy analysis at Oil Price Information Service.
ExxonMobil Corporation cut production at its Beaumont, Texas, refinery northeast of Houston due to "weather impacts" from Harvey at the 363,000 barrel-per-day facility, a spokesperson told CNBC. Exxon did not disclose how much capacity had been affected at the plant.
Exxon previously shut down its massive plant in Baytown, Texas, on the Houston Ship Channel, with a capacity of more than 560,000 barrels per day, CNBC has confirmed. The Ship Channel is the busiest in America and remains closed by the storm.
Sources told Reuters that Motiva Enterprises LLC was considering a shutdown of its Port Arthur refinery, the largest in US.
Royal Dutch Shell plc has shut down its massive Deer Park refinery in southeastern Houston, among the largest in US with a crude oil capacity of 340,000 barrels per day.
The company said in a statement obtained by CNBC, "On August 27, we made the decision to initiate a controlled shut down of the Deer Park, Texas, refinery and chemical plant as a result of heavy rainfall and associated nearby flooding from Hurricane Harvey. Only essential personnel will stay on site through the end of the week."
Also, Petrobras said it would shut down its Pasadena, Texas, refinery, with a capacity of 110,000 barrels per day, thanks to "severe weather," according to Dow Jones.
Traders and oil industry news services also say that the Phillips 66 Sweeny Texas Refinery (260,000 b/d) is shutting down, and that output at Marathon Petroleum's Galveston Bay refinery (460,000 b/d) and the Access Industries plant in Houston (260,000 b/d) are slowed because of the closed ship channel.
Oil refineries are shutting down in the wake of rainfall and flooding from Hurricane Harvey in southeastern Texas, US.
The damage could mean a loss of more than 1 million barrels per day in refining capacity just in the Houston and Galveston, Texas, areas — that's not including hundreds of thousands of more barrels in the Corpus Christi, Texas, area.
The Houston area has seen 24-34 inches of rainfall. Flash flood watches are in effect for more than 11 million people, and another 10-20 inches of rainfall is possible over the next 72 hours.
Analysts said the refinery outages could last for weeks or months if workers find significant damage due to flooding at the facilities. While refineries in Corpus Christi appear to have emerged relatively unscathed after Harvey made landfall as a hurricane, the picture is not yet clear for the Houston area, said Tom Kloza, global head of energy analysis at Oil Price Information Service.
ExxonMobil Corporation cut production at its Beaumont, Texas, refinery northeast of Houston due to "weather impacts" from Harvey at the 363,000 barrel-per-day facility, a spokesperson told CNBC. Exxon did not disclose how much capacity had been affected at the plant.
Exxon previously shut down its massive plant in Baytown, Texas, on the Houston Ship Channel, with a capacity of more than 560,000 barrels per day, CNBC has confirmed. The Ship Channel is the busiest in America and remains closed by the storm.
Sources told Reuters that Motiva Enterprises LLC was considering a shutdown of its Port Arthur refinery, the largest in US.
Royal Dutch Shell plc has shut down its massive Deer Park refinery in southeastern Houston, among the largest in US with a crude oil capacity of 340,000 barrels per day.
The company said in a statement obtained by CNBC, "On August 27, we made the decision to initiate a controlled shut down of the Deer Park, Texas, refinery and chemical plant as a result of heavy rainfall and associated nearby flooding from Hurricane Harvey. Only essential personnel will stay on site through the end of the week."
Also, Petrobras said it would shut down its Pasadena, Texas, refinery, with a capacity of 110,000 barrels per day, thanks to "severe weather," according to Dow Jones.
Traders and oil industry news services also say that the Phillips 66 Sweeny Texas Refinery (260,000 b/d) is shutting down, and that output at Marathon Petroleum's Galveston Bay refinery (460,000 b/d) and the Access Industries plant in Houston (260,000 b/d) are slowed because of the closed ship channel.
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