Gulf Coast refiners slash production as Colonial outage continues - Reuters

• Two of the largest Gulf Coast oil refineries have reduced fuel production, as the Colonial Pipeline outage limits their ability to move products to market, Reuters reports.
• Motiva Enterprises, the largest U.S. refinery at 607K bbl/day in capacity, cut production by 45%, shutting two crude distillation units and a reformer, and Total (NYSE:TOT) lowered gasoline output by 25% at its 225K bbl/day refinery in Port Arthur, Texas, reducing its fluidic catalytic cracker output and shutting a condensate splitter, according to the report.
• Marathon Petroleum (NYSE:MPC) says it is working to find alternatives for shipping from its Gulf Coast plants if the Colonial Pipeline shutdown is extended.
• Chevron (NYSE:CVX), which operates Gulf Coast oil refineries in Texas and Mississippi, says it is continuing to supply its U.S. east coast customers.
• Analysts say gasoline shortages could begin to affect retail stations and consumers along the east coast if the pipeline remains offline for five days or longer.

Comments

[Ron Burgundy’s Hair]

The Colonial Pipelines be may not be secure but hunter’s pipeline is. Smartest man I know....

[User 48291705]

Collusion amongst refiners to make back losses incurred in 2020. Get ready for gas prices to rise and stick it to consumers. Get it while you can is their motto.

😷🤙

[BooBooGao]

Anybody planning a trip this summer, using the air conditioning, or buying some fruit and vegetables trucked in from California?

[bklieb1]

Gas shortages already here are n my part of the country. Panic buying I suspect

[DUP]

@bklieb1 The toilet paper brains at work all over, damn this country is beyond hope

[martyr1777]

@DUP To many stupid people.

[bklieb1]

@martyr1777 yes and no... when I lived on the coast we filled up any time there was a hurricane in the Gulf. I get it. This is the same thing on a much larger scale.

[Kenyatta]

Time to bump retail gas pump price due to shortage.

[Catfuzzlogic]

@Kenyatta
Just another log on the inflation fire.

[jacksalmon]

if it ain't one thing, it's another with the refiners. They just cannot catch a break and appear to be doomed to deal with a constant onslaught of bad news to trash their production and earnings. Next up, MPC's Speedway deal will get canceled.

[Joe Brandon]

It’s Bidens fault!

[ginsaw]

@myeloblast "It’s Bidens fault!"

But is insanity and dementia a good defense?

That poor baby can't even give a press conference without having all questions cleared first and answers prepared to be read from a teleprompter. Heaven help him if it had to really be live.

..maybe that number one son of his could help, if he wasn't in hiding out of fear probably about something his China spy chief pal shared with him...

[DUP]

@ginsaw yo-semite park, from El presidente'....the one who would be king trumpet....

[EdwardNorton]

Fuel needs to be kept away from the Washington DC area.

[mikelmore2000]

Smells funny doesn’t it?

[Crayfishkaliari]

@mikelmore2000 its like the country is at war but no one is allowed to know

[abcde1]

@mikelmore2000 yes it does. it smells like the recent election.

[Rikki Tikki Tavi]

So this shutdown was initiated on Friday and that would put us at day three today. I read elsewhere that they are attempting incremental flows and “could “ be running by the end of the week assuming no major restart glitches.
Market seems to be very optimistic on a quick no issue restart. For the folks impacted I hope so.

[dynx]

@Rikki Tikki Tavi Suez Canal took a bit longer than expected as well...we’ll see.

[goodfellasfinancial]

Seems bullish for wti prices to me

[SandMac]

@goodfellasfinancial

It's the opposite. Less refining means less crude oil demand means crude inventories rise again. Crude price falls.

[goodfellasfinancial]

@SandMac how does less refining mean less demand? They just cant move it

[Vlae Kershner]

@goodfellasfinancial It should be bullish for Brent and bearish for WTI as the demand has to be filled from offshore.

[tjf@denver]

Powered by Dominion software

[taplinger]

@tjf@denver Stop the Steal! It's all a conspiracy! Kim Jon Un owns Dominion! We all know that!

[fully awake]

An act of war. Our response should be move heaven and earth finding out who is involved and kill them with extreme prejudice.

[dynx]

@fully awake how about a really disappointed “C’mon Man!”

[abcde1]

@fully awake what if "they" work for a certain political party in DC?

[taplinger]

@fully awake Cyber ransom criminals have been working a long time in countries like Ukraine and Russia where we not only can't find them but if we could we wouldn't be able to prosecute them or extradite them. Their computer geeks aren't any smarter than our computer geeks and one day soon our guys with the propeller hats and pocket protectors and slide rules are going to figure out how to stop the criminals.

[Tim Dunn]

Shutting down all of those refineries in the NE left the region vulnerable.

Good thing Delta bought a refinery outside Philadelphia and tuned it for high jet fuel production to provide its NYC and Boston hubs and sell the rest of the refined products on the local market.

[CEDUP]

@Tim Dunn you mean the one that burned into unusable and permanetly closed? What reginery..the old sun oil in Marcus hook..isn't that also closed..delta did not do any such thing...get your facts straight

[Tim Dunn]

@CEDUP
Delta operates the Trainer refinery which is tuned to produce the chemically maximum amount of jet fuel. It did not burn; another refinery did.
Check their 10K and your own "facts."

[Tim Dunn]

@Tim Dunn
From Delta's 10K issued less than 3 months ago

Monroe Energy
Our wholly owned subsidiaries, Monroe Energy, LLC and MIPC, LLC (collectively, "Monroe"), operate the Trainer refinery and related assets located near
Philadelphia, Pennsylvania. The facilities include pipelines and terminal assets that allow the refinery to supply jet fuel to our airline operations throughout the
Northeastern U.S., including our New York hubs at LaGuardia and JFK. These companies are distinct from us, operating under their own management teams and
with their own boards of managers. We own Monroe as part of our strategy to mitigate the cost of the refining margin reflected in the price of jet fuel, as well as to
maintain sufficiency of supply to our New York operations.
Refinery Operations. The facility is capable of refining approximately 200,000 barrels of crude oil per day. In addition to jet fuel, the refinery's production
consists of gasoline, diesel and other refined petroleum products ("non-jet fuel products"). Monroe sources domestic and foreign crude oil supply from a variety of
providers. During 2020, the refinery operated at 60% – 90% of normal production levels, largely due to the significant decrease in the demand for jet fuel.
Additionally, due to the decrease in demand for jet fuel, the refinery has shifted production to produce more non-jet fuel products.
Strategic Agreements. Monroe has agreements in place to exchange the non-jet fuel products the refinery produces with third parties for jet fuel consumed in
our airline operations.

[Sgt_Pepper4]

Cool CVX.

[Cash McCall]

Guess Joe Trump will get his petrol and diesel prices up to $7 a gallon after all. Nothing slows the US economy more than high priced gasoline and shortages of supply.

[bongoFL]

@Cash McCall Joe Trump? You mean Sleepy Joe “Bite Me” … He’s our feckless leader now! Long KMI, EOG and FANG!

[Joe Brandon]

@Cash McCall if Bush was in office it would already have been his fault

[jimoc]

@myeloblast isn’t the media wonderful