Fuel Futures: Diesel Will Spike on IMO2020
New marine fuel rules to boost diesel prices for at least a year -analystsGlobal prices for diesel and marine fuels should rise by October ahead of a January switchover to new, very low-sulfur marine fuels, and remain higher for at least a year as refiners shift production to make more of the new fuels, analysts said.Marine fuels containing no more than 0.5% sulfur by weight, down from the 3.5% currently used, to power ocean-going vessels will be required for ships without exhaust scrubbers on Jan.
U.S. Refiners' 2020 Plans Now Uncertain
U.S. refiners had a plan for 2020: use their complex operations to maximize profits by making products that would comply with new international laws capping sulfur content in shipping fuels.But after a series of unexpected market moves, heavy, sour crude oil processed by U.S. refiners has become more expensive, eating up hoped-for profit windfalls before they even materialized, forcing refiners to rethink plans to invest more in heavy crude processing units.New regulations by…
U.S. Midwest Refiners Boost Output
U.S. refineries from Ohio to Minnesota are capitalizing on access to cheap crude from Western Canada and North Dakota oilfields, helping their region break a historic dependence on fuel from the Gulf Coast while redrawing oil trade maps. Since the early 2000s, crude and fuel flows from the Gulf Coast into the U.S. heartland have been cut in half, as crude coming from Canada and North Dakota has pushed U.S. Midwest refining activity to record levels. In 2016, Midwest refining capacity rose to 3.9 million barrels per day (bpd) of crude, the highest annual volume on record.
U.S. GoM Energy Producers Evacuating Ahead of T/S Nate
Oil and natural gas producers began evacuating staff at U.S. Gulf of Mexico platforms on Thursday ahead of Tropical Storm Nate, the second storm in as many months to threaten Gulf Coast oil and refining facilities. Nate, which has already killed three people in Costa Rica, according to local authorities, is forecast to scrape past Honduras and Mexico, enter the Gulf and strengthen into a hurricane before making landfall early on Sunday in Louisiana, near several major refineries.
Oil Markets Brace for Possible US Sanctions on Venezuela
U.S. oil markets were readying for fallout from potential U.S. sanctions on Venezuela's vital oil sector on Monday after Sunday's election in the struggling country was deemed a "sham" by Washington. Venezuelan President Nicolas Maduro on Monday celebrated the election of a new legislative superbody that will have the power to dissolve state institutions such as the opposition-run Congress. Countries around the world denounced the vote. U.S. crude futures jumped above $50 a barrel for the first time in two months early in the session before retreating, after U.S.
Gasoline Futures Rally Propels Crude Markets
U.S. shale drilling slowdown may be temporary. Oil prices rose to an eight-week high on Thursday, as a rally in U.S. gasoline futures spurred further gains this week that came after key OPEC members pledged to reduce exports and the U.S. government reported a sharp decline in crude inventories. U.S. gasoline futures were the biggest percentage gainer in the petroleum complex, up 1.6 percent to their highest since May 30. "Today's buying rotation back to the front of the (gasoline) curve is a healthy sign that augers in favor of additional price gains…
Marathon Galveston Bay Contractor Feared Drowned
A contractor was feared drowned after falling into the Port of Texas City, Texas, when scaffolding supporting him collapsed at the Marathon Petroleum Corp Galveston Bay refinery dock, a Texas City official said. "Divers are en route to do a body recovery," Derek Duckett, director of emergency management for Texas City, said on Monday. Part of the scaffolding fell at about 11:30 a.m. CDT (1630 GMT) Monday and the worker has not been seen since, Duckett said. "I heard part of the scaffolding fell and he was tied to it," Duckett said. An investigation will be needed to determine what happened, he said. The Texas City Fire Department and the U.S. Coast Guard searched for the man before the divers were called out, Duckett said.
Building Unions Return to Kentucky Refinery
Workers represented by the Building Trades Unions will return to Marathon Petroleum Corp's refinery in Catlettsburg, Kentucky on Monday, even as a strike by the United Steelworkers drags into a second week, documents obtained by Reuters show. The USW began a strike Feb. 1 at nine refineries and chemical plants, including Marathon's 240,000 barrel-a-day Kentucky plant. Buildings Trades Unions' workers will not be replacing striking workers' running the plant, according to the letter. While the Building Trades Unions say they continue to support the USW's cause, their return work comes at a sensitive time for the steelworkers as their strike enters a second week. The backing of the building unions is considered crucial for a successful strike nationally, a person familiar with refining said.
Local Glitches Drag U.S. Refinery Capacity Down
U.S. oil refiners work to recover from weekend glitches, fires. Three of the largest U.S. oil refineries will be working to restore operations on Tuesday after a series of weekend glitches temporarily knocked out some 1 million barrels per day (bpd) of processing capacity, the worse spate of outages in years. A fourth plant, Husky Energy Inc's 155,000-bpd Lima, Ohio, refinery, is not expected back online until the end of the week after a blast at its 25,000-bpd isocracker unit, which sources have said was extensively damaged. The disruptions - which included three fires on Saturday and one shutdown late last week - affected about one-fifth of the refining capacity in the eastern half of the United States, fueling deeper losses in U.S.
Refiners Seek Jones Act Workarounds as Crude Export Debate Heats Up
As the first U.S. oil condensate exports head to Asia from the Gulf Coast, crude producers and refiners are exploring ways to get around a century-old law that makes it three times more expensive to ship by water between U.S. ports than to sail to a foreign port. The Jones Act, originally passed to protect the U.S. maritime industry, restricts passage between U.S. ports to ships that are U.S.-built, U.S.-flagged and U.S.-crewed. If oil exports pick up pace while the Jones Act is left in place, U.S.
Exxon eyes expanding Texas refinery
Exxon Mobil Corp is considering a multi-billion-dollar plan to expand its Beaumont, Texas, refinery into the country's largest, the first major refining investment of the U.S. shale oil boom, people with knowledge of the deliberations said. The expansion of the 344,600 barrel-per-day (bpd) Beaumont refinery, if carried out, would be completed by 2020 and potentially double its size with the addition of a third crude distillation unit (CDU), the sources said. More modest near-term projects to renew and expand so-called coking units to help refine more heavy crude already are under way…
Marathon Traders Gain E.Coast foothold with Hess Deal
Marathon Petroleum Corp is poised to expand its growing Midwest and Gulf Coast fuel trading operation to the East Coast with Thursday's deal to buy Hess Corp's retail network and transport contracts. The purchase will give Marathon control of Hess's gasoline stations and access to pipelines, including the capacity to ship approximately 40,000 barrels per day on the sought-after Colonial Pipeline from the Gulf Coast to the East Coast, according to the companies. The $2.9 billion deal is expected to close late in the third quarter. That likely means opening up new trading opportunities. Marathon's nearest refinery is nearly 500 miles east of New York City in Canton, Ohio, with few major pipelines in between.
Waterways Council - Officers & Directors
At the Annual Waterways Council, Inc. (WCI) Membership Meeting and Board of Directors Meeting held October 29 in St. Louis, the following officers and Executive Committee members were elected to serve or continue service for 2008-2009: Dan Mecklenborg, Senior Vice President, HR & Chief Legal Officer, Ingram Barge Company, remains as Chairman of the Board; Cornel Martin, was elected President and CEO; Steve Little, President and CEO, Crounse Corporation, remains as General Counsel; Peter Stephaich, Chairman, Campbell Transportation Co., was re-elected Secretary; Cherrie Felder, Vice President, Channel Shipyard, remains as Treasurer. Former WCI President and CEO R. Barry Palmer was named President Emeritus. Also named to new terms as officers were Richard R.