Texas refinery blast could help push gas prices above $4 a gallon

[libertybele]

Texas refinery blast could help push gas prices above $4 a gallon

The blast at a Texas oil refinery early Thursday will probably push already high gasoline prices even higher — although not immediately.
The blast and resulting fire at the ExxonMobil (XOM) plant in the Houston-area city of Baytown, Texas, injured at least four workers. The accident could hamper output at one of America's largest refineries for months, weighing on gasoline supply at at time when US refining capacity has already been reduced, said Tom Kloza, chief oil analyst for the Oil Price Information Service.
"They're not going to have all systems go for a couple of quarters," he said.

The average price for a gallon of regular gas now stands at $3.29, down 11 cents from a month ago, but still up $1.05 per gallon, or 47%, from a year ago. Gas prices have been a major factor in the rate of inflation hitting a 39-year high.

Kloza said he would not be surprised to see average prices rise to $4 a gallon in much of the country this spring and summer as the economy continues to recover and demand for gas increases. The limited supply of gasoline due to the loss of refining capacity in the United States and elsewhere will only help lift prices higher.

The good news for drivers — for now — is the refinery explosion won't immediately send gas prices higher. That's mostly because the next six weeks — from right before Christmas to early February — is historically the period of lowest demand for gasoline nationwide. Winter weather and short daylight hours discourage people from driving. Wholesale gas prices were up only 2 cents a gallon to $2.19 in early trading Thursday.
"Fortunately we don't need the gasoline [from Baytown] for the next six weeks," Kloza said.

But by spring, when demand starts to increase again, the lost output from Baytown will likely be felt at pumps nationwide. ...........

https://www.cnn.com/2021/12/23/energy/gas-prices-texas-refinery-blast/index.html

[rustynail]

Joe used to work in a refinery he will know how to fix this unlike Trump.

[Free Vulcan]

Part of me realizes that refineries right now are probably running flat out because of demand, making accidents like this more possible.

The other part also realizes that an explosion would be very convenient for certain players with certain agendas right now.

I'd guess I'd like to know the how and what part of the plant this happened, just to begin with.

[Elderberry]

Exxon Cuts Baytown Refinery Rates After Extinguishing Fire

Yahoo by Barbara Powell and Francesca Maglione 12/24/2021

https://www.yahoo.com/now/exxon-reports-blaze-major-u-103614498.html

The blaze broke out in a unit called a reformer feed hydrotreater, according to Wood Mackenzie’s Genscape unit. Other units impacted include a toluene benzene unit and a nearby cooling tower, according to a person familiar with operations.

Reformer feed hydrotreaters remove sulfur from partially refined oil to help the finished gasoline meet clean-air rules. The units process feedstock used by reformers to make high-octane gasoline. The toluene unit extracts aromatics from feed sent to it by the reformer. If the fire impact is prolonged, it could affect prices of premium gasoline.

Exxon spokeswoman Julie King said Baytown is adjusting rates at other Baytown facilities to focus on stabilizing the affected units, but did not discuss the impact on fuel production.

[Hoodat]

Reformer feed hydrotreaters remove sulfur from partially refined oil to help the finished gasoline meet clean-air rules. The units process feedstock used by reformers to make high-octane gasoline. The toluene unit extracts aromatics from feed sent to it by the reformer. If the fire impact is prolonged, it could affect prices of premium gasoline.

They don't have this problem at Chinese refineries since they don't bother removing sulfur or benzene from their gasoline.

[Wingnut]

Joe used to work in a refinery he will know how to fix this unlike Trump.

Back in another life time I worked a TAR at the then Mobil Oil refinery in Chalmette, LA. I was up on a coker unit 40 or 50 feet up doing 12 hr shifts 6 days a week.  Fascinating place.  Back then they took safety training very serious. 

[Hoodat]

Back in another life time I worked a TAR at the then Mobil Oil refinery in Chalmette, LA. I was up on a coker unit 40 or 50 feet up doing 12 hr shifts 6 days a week.  Fascinating place.  Back then they took safety training very serious.

@Wingnut

Are you sure it wasn't Murphy Oil?

[Wingnut]

@Wingnut

Are you sure it wasn't Murphy Oil?

@ Hoodat
It was Mobil back then.  Up till a few years ago I still had my old hardhat with Mobil sticker on it.

[Hoodat]

@ Hoodat
It was Mobil back then.  Up till a few years ago I still had my old hardhat with Mobil sticker on it.

Yep.  Stickers are important.  Anyway, I was confusing yours was the old Murphy Oil refinery (now Valero) in Meraux.  Spent a couple of months there back in 2014 or so.  I think that is a cool little area.  Was staying in Metairie at the time, so I had a nice little drive across some choice drawbridges each day.

Here's another Chalmette staple:



There is no color remaining on any of the buildings or signs.  The place looks abandoned, but it is still fully operational, cranking out sugar for beignets at Cafe du Monde.
 

[Wingnut]

Yep.  Stickers are important.  Anyway, I was confusing yours was the old Murphy Oil refinery (now Valero) in Meraux.  Spent a couple of months there back in 2014 or so.  I think that is a cool little area.  Was staying in Metairie at the time, so I had a nice little drive across some choice drawbridges each day.

Here's another Chalmette staple:



There is no color remaining on any of the buildings or signs.  The place looks abandoned, but it is still fully operational, cranking out sugar for beignets at Cafe du Monde.

I didn't have much time to explore the area. I had the 6pm to 6 am shifts.  (Low man on the totem pole) .  Pretty much get off work at 6 AM and start drinking till noon and try and grab some sleep at the motel before we did it all over again.  One Sunday however, a bunch of us drove down to Bourbon St. to party.  Oh my!  The individual acts of perversion I witnessed were astounding.  Decorum and @Cyber Liberty  prevent me from listing them here!..

[GtHawk]

Part of me realizes that refineries right now are probably running flat out because of demand, making accidents like this more possible.

The other part also realizes that an explosion would be very convenient for certain players with certain agendas right now.

I'd guess I'd like to know the how and what part of the plant this happened, just to begin with.

Here in Californistan we kind of got used a pattern of sorry we had to take refineries of line for maintenance to push up profits for oil companies and golly gee the state too, and then there were the oops accidents that also resulted in the same. And sometimes there were the legitimate big events that occurred when you hope there were no serious injuries or deaths.

Sadly I like many here have become jaded to shutdowns that just happened to also result in record profits and a major increase in sales taxes for fuel.

[IsailedawayfromFR]

They don't have this problem at Chinese refineries since they don't bother removing sulfur or benzene from their gasoline.

And they will not shut down when people are killed, as the bodies will be simply pushed to the side.

[IsailedawayfromFR]

@ Hoodat
It was Mobil back then.  Up till a few years ago I still had my old hardhat with Mobil sticker on it.

Yep, that refinery sat at the English Turn of the Mississippi River where during the war of 1912 Ole Andy Jackson snookered the British coming up the river to turning around rather than sailing up to take New Orleans.

The English proved very Mobile in retreating.