Energy transition comes to Deer Park

[Elderberry]

Houston Chronicle by George Baker 1/17/2022

For the Houston area, energy transition in 2022 will come when Shell hands over the Deer Park refinery to its long-time partner, the Mexican national oil company, Pemex.

On December 21, a Treasury Department official informed Pemex’s legal representative that there were no unresolved national security issues associated with the planned purchase of Shell Oil’s controlling interest. The next day, Mexico’s president, Andrés Manuel López Obrador (aka, AMLO) thanked President Biden for the approval of the deal, interpreting it as his trust in Pemex’s ability to operate the refinery safely.

The Greater Houston’s regional economic, environmental and public-safety outlook will be compromised by the deal. Shell is dumping the refinery in the lap of an unprepared and unqualified buyer.

Shell has insisted that the refinery will operate the same as before because refinery workers will continue in their jobs. But Shell managers won’t. They’ll be moved to other jobs at Shell — which court documents confirm — leaving leadership posts to be filled by Pemex.

More: https://www.houstonchronicle.com/business/energy/article/Comment-Energy-transition-comes-to-Deer-Park-16774222.php

[catfish1957]

Agree with the assessment.  Foreign owned facilities tend to bend and circumvent when given a chance.  Formosa Plastic is a prime example of that.

You might say that in the era of envirowhacko stringency, that that might be a good option.  Problem is, it creates an uneven playing field with U.S. Companies who seem to have more philosphy  toward full compliance with safety and environmental rules and regulations.

Also add the fact that PEMEX's loyalties will be obvious during shortages.

3rdly, I guess everybody realizes hat PEMEX likely doesn't even have a pension plan.  There is a reason Shell is protecting their managers.

[IsailedawayfromFR]

Agree with the assessment.  Foreign owned facilities tend to bend and circumvent when given a chance.  Formosa Plastic is a prime example of that.

You might say that in the era of envirowhacko stringency, that that might be a good option.  Problem is, it creates an uneven playing field with U.S. Companies who seem to have more philosphy  toward full compliance with safety and environmental rules and regulations.

Also add the fact that PEMEX's loyalties will be obvious during shortages.

3rdly, I guess everybody realizes hat PEMEX likely doesn't even have a pension plan.  There is a reason Shell is protecting their managers.

I could not read the entire article as I do not subscribe to the Houston Chronicle.

Both owners are foreign and Shell continues to draw away from the oil and gas industry which built their heritage.  At least with Pemex, I believe we will see an appreciation of the industry and more robustness of operating the refinery as Pemex wants success more than does Shell which has diverged toward the renewables fantasy bigtime.

So in my mind, Pemex is a preferred owner as long as we keep a watchful eye on them.