Exxon shuts down fourth largest refinery in US because of Louisiana flooding

Bloomberg/Fuel Fix:
Exxon Mobil curbed operations at the fourth-largest U.S. refinery in the U.S. as record flooding in Louisiana shut roadways, sent tens of thousands fleeing from their homes and threatened the state’s oil infrastructure.

The Baton Rouge refinery along the Mississippi shut four production units and idled others when the flooding threatened an offsite liquefied petroleum gas storage facility and pumping station, a person familiar with operations said early Wednesday. The refinery can process 502,500 barrels of crude a day into gasoline, diesel and other fuels.
Most in danger from direct disruption from flooding are the support infrastructure like pipelines, terminals and salt caverns, said Andy Lipow, president of Lipow Oil Associates in Houston. “Those that supply support services to refineries could be in danger of shutting down and that could impact refineries’ operations,” Lipow said.
Baton Rouge and Lafayette have received the most rain running 19 to 20 inches above normal rainfall for the month of August.  Drainage tends to be slow in the relatively flat areas of Louisiana.  When they get this much rain, it tends to pond in roadways causing transportation in some areas to shut down.

Exxon has said it is still meeting its contractual obligations despite the shutdown.  The disruption is happening at a time when there is still an oversupply of oil and gasoline.


Popular posts from this blog

Democrats worried about 2018 elections

Obama's hidden corruption that enriched his friends

Illinois in worst financial shape, Texas in best shape