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.

From other sites
Comments (3)
  • benitus
    , contributor
    Comments (3153) | 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 (57) | Send Message
     
    Great news for Phillips 66.
    25 Mar 2014, 03:07 AM Reply Like
  • xomstock
    , contributor
    Comments (435) | Send Message
     
    Cruise line went through yesterday it can't be to bad.
    25 Mar 2014, 08:51 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs