Pro­duc­tion, re­finer­ies com­ing back from Har­vey

Financial Mirror (Cyprus) - - FRONT PAGE - By Paul Au­sick

As now trop­i­cal storm Har­vey pre­pares to take an­other shot at Hous­ton and the sur­round­ing area, the city’s shel­ters are near ca­pac­ity and Dal­las of­fi­cials are pre­par­ing that city’s con­ven­tion cen­tre to shel­ter as many as 5,000 peo­ple. A fed­eral gov­ern­ment of­fi­cial has said that the storm will force 30,000 peo­ple into tem­po­rary shel­ters and a to­tal of around 450,000 to need some form of dis­as­ter as­sis­tance.

There have been sev­eral re­ports that a fam­ily of six has drowned while try­ing to es­cape the high wa­ter. While the num­ber of deaths at­trib­uted to the storm is not of­fi­cial yet, at least 11 deaths have been at­trib­uted to Har­vey.

Prop­erty dam­age is ex­pected to soar into the tens of bil­lions and the area hit hard­est by the storm could take years to re­cover. A re­port in the Dal­las News puts the res­i­den­tial prop­erty value of the eight coun­ties in the Hous­ton area at $353 bln and in the coastal coun­ties from Beau­mont south to Cor­pus Christi an­other $39 bln. Of that nearly $400 bln to­tal, at least $145 bln is at di­rect risk within the 500-year flood­plain.

As of Mon­day, nearly 2.2 mil­lion bar­rels per day of re­fin­ery ca­pac­ity in Texas had been shut down, nearly half of the state’s to­tal 4.94 mil­lion bpd of ca­pac­ity. That to­tal is un­changed from Sun­day’s to­tal. The fol­low­ing re­finer­ies have closed, ac­cord­ing to S&P Global Platts: Exxon Mo­bil’s Bay­town: 560,500 bpd of ca­pac­ity Valero Cor­pus Christi: 293,000 bpd Citgo Cor­pus Christi: 157,500 bpd Flint Hills Cor­pus Christi: 296,470 bpd Mag­el­lan Cor­pus Christi: 50,000 bpd Buck­eye Cor­pus Christi: 50,000 bpd Shell Deer Park (Hous­ton): 340,000 bpd Pasadena: 112,229 bpd Phillips 66 Sweeny (Hous­ton): 247,000 bpd Valero Three Rivers: 89,000 bpd Off­shore pro­duc­tion be­gan to re­turn Mon­day, as the to­tal amount of pro­duc­tion shut in has dropped from about 429,000 bpd to 331,000 bpd. Anadarko has re­sumed pro­duc­tion at four of its plat­forms and is look­ing at restart­ing one more, ac­cord­ing to S&P Global Platts.

Nat­u­ral gas pro­duc­tion shut­downs have dropped from around 830 bil­lion cu­bic feet per day to around 583 bil­lion.

On­shore pro­duc­tion from the Ea­gle Ford is re­sum­ing as well. BHP Bil­li­ton has be­gun ramp­ing up pro­duc­tion and re­lated mid­stream fa­cil­i­ties.

Kinder Mor­gan has de­clared force ma­jeure on sec­tions of its Ten­nessee Gas pipeline, and the Nat­u­ral Gas Pipeline com­pany and has im­ple­mented par­tial shut­downs of sev­eral other in­ter­state sys­tems.

Che­niere En­ergy’s LNG gasi­fi­ca­tion plant at Sabine Pass re­mains open, but fore­casts for heavy rain mov­ing to­ward Louisiana could force some ad­just­ments. One LNG train had al­ready been shut down for main­te­nance un­re­lated to the storm.

More than 40% of U.S. eth­yl­ene ca­pac­ity and about 28% of poly­eth­yl­ene ca­pac­ity re­mained shut Mon­day as Har­vey con­tin­ued to dump dev­as­tat­ing rain­fall on the Texas mid­dle and up­per coast.

Olefins units in at least eight petro­chem­i­cal com­plexes were taken off­line be­tween Thurs­day and Mon­day, shut­ting nearly 11.4 mil­lion met­ric tons per year of eth­yl­ene ca­pac­ity. U.S. eth­yl­ene ca­pac­ity is 26.7 mil­lion met­ric tons per year with the ma­jor­ity lo­cated near the coasts of Texas and Louisiana.

West Texas In­ter­me­di­ate (WTI) crude oil for Oc­to­ber delivery traded down about 1% early Tues­day at $46.52 a bar­rel, from a high of around $48.31 last Thurs­day. Crude prices have fallen be­cause shut-in re­finer­ies can­not take de­liv­er­ies. With no place to go, de­mand has fallen and so have prices.






delivery traded down about four cents a gal­lon from Mon­day’s high of $1.61.

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