http://oilprice.com/Latest-Energy-News/World-News/Gas-Prices-to-Rise-Along-West-Coast-after-Fire-at-Chevrons-California-Refinery.html
Yesterday at around 6.00pm a leak was discovered by workers at Chevrons large oil refinery in Richmond, California. The leak grew in size as workers were evacuated from the site.
Ryan Lackay, a 45-year-old employee at a chemical plant next door to the refinery, said that he saw “what looked like a lot of steam coming out of Chevron, way more than usual. I thought they must have blown a boiler. And then all of a sudden it just went whoosh, it ignited.”
The fire erupted in the No. 4 crude distillation unit (CDU), sending flames and smoke billowing into the air. CDU’s break oil down into hydrocarbon products that can be used to produce different petroleum products in other parts of the refinery. Unfortunately this plant only has one such CDU, and it could take months to repair, raising the possibility of a major disruption to fuel supply along the West Coast.
Authorities ordered more than 100,000 local residents to remain indoors in order to avoid toxic fumes that were settling over the area. The fire blazed for hours, but has now been contained sufficiently, although not extinguished, for the curfew to be lifted. A total of 200 people have had to seek medical care after complaining of respiratory problems.
It is common practice to shut down an entire refinery after a large fire, in order to perform a complete mechanical inspection of all processes. Back in February, a CDU at BP’s Cherry Point, Washington, refinery also caught fire and was shut down for three months.
How this fire will affect gasoline prices in the region is yet to be seen, but an increase should definitely be expected.
and.....
http://www.zerohedge.com/news/guest-post-us-midwest-hit-perfect-gasoline-storm
Submitted by Tyler Durden on 08/07/2012 20:42 -0400
Enbridge maintains that "better than 99.999 percent" of the time, there are no problems with its vast network of oil pipelines in the United States. When accidents do happen, however, they're costly. Last year's oil spill in Michigan, on the same network as the Wisconsin leak, was the costliest onshore incident in U.S. history and EPA authorities are still reporting sheen in some of the waterways soiled by the release. Refineries, meanwhile, have shut down at a time when the region is using "summertime gasoline," a blend not manufactured very much outside of the Midwest.
Patrick DeHaan, a petroleum analyst at reporting Web sitegasbuddy.com, told a Chicago newspaper that the regional spike in gasoline prices is temporary and likely "the last hiccup" for the summer. Nevertheless, gasoline prices rarely experience a 10 percent decline overnight.
"As we all know, (retail prices) only move down by pennies per day," he said.
Yesterday at around 6.00pm a leak was discovered by workers at Chevrons large oil refinery in Richmond, California. The leak grew in size as workers were evacuated from the site.
Ryan Lackay, a 45-year-old employee at a chemical plant next door to the refinery, said that he saw “what looked like a lot of steam coming out of Chevron, way more than usual. I thought they must have blown a boiler. And then all of a sudden it just went whoosh, it ignited.”
The fire erupted in the No. 4 crude distillation unit (CDU), sending flames and smoke billowing into the air. CDU’s break oil down into hydrocarbon products that can be used to produce different petroleum products in other parts of the refinery. Unfortunately this plant only has one such CDU, and it could take months to repair, raising the possibility of a major disruption to fuel supply along the West Coast.
Authorities ordered more than 100,000 local residents to remain indoors in order to avoid toxic fumes that were settling over the area. The fire blazed for hours, but has now been contained sufficiently, although not extinguished, for the curfew to be lifted. A total of 200 people have had to seek medical care after complaining of respiratory problems.
It is common practice to shut down an entire refinery after a large fire, in order to perform a complete mechanical inspection of all processes. Back in February, a CDU at BP’s Cherry Point, Washington, refinery also caught fire and was shut down for three months.
How this fire will affect gasoline prices in the region is yet to be seen, but an increase should definitely be expected.
and.....
Fire at West Tulsa Oil Refinery has been Contained
Before 3am on last Thursday, residents local to an oil refinery in west Tulsa reported that they heard a large explosion. According the news site, KRMG.com, the explosion caused a large fire on the diesel hydrotreater unit at the refinery.
HolyFrontier Corp., the owner of the refinery plant, said that their emergency response teams worked quickly to contain the blaze, and that the community is not at risk. They also stated that all workers at the plant have been accounted for and no one was injured.
The company does not know the cause of the explosion, and are still investigating the whole incident.
HollyFrontier is based in Dallas and operates four other refineries in Kansas, New Mexico, Utah, and Wyoming. The refinery in west Tulsa has a daily capacity of 125,000 barrels of crude oil.
HolyFrontier Corp., the owner of the refinery plant, said that their emergency response teams worked quickly to contain the blaze, and that the community is not at risk. They also stated that all workers at the plant have been accounted for and no one was injured.
The company does not know the cause of the explosion, and are still investigating the whole incident.
HollyFrontier is based in Dallas and operates four other refineries in Kansas, New Mexico, Utah, and Wyoming. The refinery in west Tulsa has a daily capacity of 125,000 barrels of crude oil.
http://www.zerohedge.com/news/guest-post-us-midwest-hit-perfect-gasoline-storm
Guest Post: US Midwest Hit By Perfect Gasoline Storm
Submitted by Daniel Graeber of OilPrice.com,
Retail gasoline prices in the U.S. Midwest were as much as 50 cents higher than in the rest of the country. By Monday, the price of a gallon of regular unleaded jumped 13 cents from last week in Detroit to settle at $3.99. The spike in retail gasoline prices follows a series of pipeline spills in Wisconsin and refinery shutdowns in Chicago and elsewhere. The impact of the string of industrial incidents on consumers in the region may be short-lived, but retail prices rarely decline as fast as they increase.
The American Automobile Association, in its daily gasoline report, states a gallon of regular unleaded gasoline in Detroit cost $4.05, up from the $3.69 average just one week ago. Chicago drivers, meanwhile, were paying on average $4.39 per gallon, a 10 percent increase from last week. According to AAA, the national average for a gallon of regular unleaded is $3.62. While that's a far cry from the national spikes early this year, the regional blow has irked many area residents wary of high consumer prices and pipeline incidents.
An industry analyst said much of the region was hit by "a cluster of bad luck." Last month, pipeline company Enbridge reported a leak on a pipeline in Wisconsin. A section of the Lakehead oil pipeline system ruptured there, cutting off oil supplies to Chicago-area refineries. U.S. Transportation Secretary Ray Lahood said the incident was "absolutely unacceptable" and forced Enbridge to keep the line closed until authorities review a restart plan for the entire 467-mile pipeline.In Michigan, the state's governor last month issued a fuel emergency in response to the rupture of pipeline that released 1,000 barrels of unleaded gasoline in eastern Wisconsin. Gov. Rick Snyder's emergency declaration lifted the restrictions placed on long-haul truckers so they could deliver retail petroleum products. Less than two weeks later, Enbridge confirmed that 1,200 barrels of oil spilled from Line 14 in central Wisconsin. A nearby resident said the pipeline "blew like an oil well."
The American Automobile Association, in its daily gasoline report, states a gallon of regular unleaded gasoline in Detroit cost $4.05, up from the $3.69 average just one week ago. Chicago drivers, meanwhile, were paying on average $4.39 per gallon, a 10 percent increase from last week. According to AAA, the national average for a gallon of regular unleaded is $3.62. While that's a far cry from the national spikes early this year, the regional blow has irked many area residents wary of high consumer prices and pipeline incidents.
An industry analyst said much of the region was hit by "a cluster of bad luck." Last month, pipeline company Enbridge reported a leak on a pipeline in Wisconsin. A section of the Lakehead oil pipeline system ruptured there, cutting off oil supplies to Chicago-area refineries. U.S. Transportation Secretary Ray Lahood said the incident was "absolutely unacceptable" and forced Enbridge to keep the line closed until authorities review a restart plan for the entire 467-mile pipeline.In Michigan, the state's governor last month issued a fuel emergency in response to the rupture of pipeline that released 1,000 barrels of unleaded gasoline in eastern Wisconsin. Gov. Rick Snyder's emergency declaration lifted the restrictions placed on long-haul truckers so they could deliver retail petroleum products. Less than two weeks later, Enbridge confirmed that 1,200 barrels of oil spilled from Line 14 in central Wisconsin. A nearby resident said the pipeline "blew like an oil well."
Enbridge maintains that "better than 99.999 percent" of the time, there are no problems with its vast network of oil pipelines in the United States. When accidents do happen, however, they're costly. Last year's oil spill in Michigan, on the same network as the Wisconsin leak, was the costliest onshore incident in U.S. history and EPA authorities are still reporting sheen in some of the waterways soiled by the release. Refineries, meanwhile, have shut down at a time when the region is using "summertime gasoline," a blend not manufactured very much outside of the Midwest.
Patrick DeHaan, a petroleum analyst at reporting Web sitegasbuddy.com, told a Chicago newspaper that the regional spike in gasoline prices is temporary and likely "the last hiccup" for the summer. Nevertheless, gasoline prices rarely experience a 10 percent decline overnight.
"As we all know, (retail prices) only move down by pennies per day," he said.
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