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Exxon says Houston Ship Channel shutdown is hitting refinery output

  • Exxon Mobil (XOM) says the shutdown of the Houston Ship Channel is affecting production rates at its huge Baytown refining complex, but the company does not disclose how large a drop it expects, only that it expects to meet its contractual obligations.
  • Tudor Pickering analysts say they don't think the spill will create a major energy event but a multi-day channel shutdown would have some effects on imports and inventories.
  • Companies aren't ready to detail potential problems: Valero (VLO), which has a refinery in Texas City, says it doesn't discuss refinery production rates, and Shell (RDS.A, RDS.B), which owns a refining and petrochemical complex in Deer Park near the Houston Ship Channel, says it has contingency plans in place to deal with a prolonged shutdown.
  • Phillips 66's (PSX) nearest refinery complex is in Sweeny, ~60 miles away from Houston, and gets most of its oil through waterways in Freeport; it doesn't foresee the spill affecting that plant's production.
  • The Coast Guard says there is no timetable on when the ship channel may reopen.
Comments (3)
  • benitus
    , contributor
    Comments (2073) | Send Message
    This is a non-event because the Ship Channel is expected to be cleared by tomorrow and normal operations should resume shortly. Making a mountain out of a mole-hill is a poor attempt to drive down prices. The Ship Channel is a lifeline for Houston, so the authorities aren't going to let the situation deteriorate to unmanageable proportions. Business as usual in no time. Nice try.
    24 Mar 2014, 06:05 PM Reply Like
  • philli66
    , contributor
    Comments (33) | Send Message
    Great news for Phillips 66.
    25 Mar 2014, 03:07 AM Reply Like
  • xomstock
    , contributor
    Comments (242) | Send Message
    Cruise line went through yesterday it can't be to bad.
    25 Mar 2014, 08:51 AM Reply Like
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