Ike Forces Shutdown of 19% of U.S. Refining Capacity

[Cutten]

Quote from rodmike9:

That's what I thought. If you are interested in selling me some crude contracts at Friday's closing price, please PM me.

I am also a buyer of natural gas at Friday's closing price too

I already have on some calls, so not really looking to sell.

 

[regal_2012]

Quote from JA_LDP:

gas is over $6/gallon here in parts of michigan.

gas prices are capped at $5 in GA, so far have risen to 4.29 for regular

the problem is finding a staion that actually has gas

hopefully that changes today.

 

[Cutten]

Quote from rodmike9:

That's what I thought. If you are interested in selling me some crude contracts at Friday's closing price, please PM me.

I am also a buyer of natural gas at Friday's closing price too

Is your bid still there?

 

[vv111y]

``It looks like we've dodged another bullet,'' said Peter Beutel, president of energy consultant Cameron Hanover Inc. in New Canaan, Connecticut. ``The refineries in the Huston area seem to have come out of the storm remarkably intact.''

http://www.bloomberg.com/apps/news?pid=20601087&sid=a3cRgF_BhW50&refer=home

 

[lwmoss]

Newbie question here:

I notice that both oil and mini oil opened this morning at around 9am central time. Normally, they open at 5pm central time.

Why are they open now?

 

[bruceistheone]

"Ike severely hit oil and gas production in the region and wreaked at least $8bn (£4.5bn) in onshore damage."

"Texas senator Kay Bailey Hutchison warned that oil refineries disabled by the hurricane could remain idled for a further eight or nine days - and that Americans should brace for possible fuel shortages."


http://news.bbc.co.uk/2/hi/americas/7615480.stm

 

[vv111y]

These refineries are all in the Entergy Texas service area that is going to be affected by not having 1900 MW of generating capacity.

Beaumont Refinery (ExxonMobil), Beaumont 348,500 bbl/d (55,410 m�/d)
Port Arthur Refinery (Total), Port Arthur 233,500 bbl/d (37,120 m�/d)
Port Arthur Refinery (Motiva Enterprises), Port Arthur 285,000 bbl/d (45,300 m�/d)
Port Arthur Refinery (Valero), Port Arthur 325,000 bbl/d (51,700 m�/d)
(list from Wikipedia)

Of course, the grid is not isolated from the market, so once transmission lines are restored, power can be bought from other areas. But it looks like 1.1 million bpd is going to be impacted seriously from the major infrastructure damage in Southeast Texas.

I also should point out that current repair estimates are based on computer modeling of damage. Things could be better or worse. Damage assessment continues today.

http://www.theoildrum.com/node/4525

So which is it? The bloomberg article or the one from Bruceistheone?

 

[vv111y]

U.S. oil prices dropped $2 to a six-month low below $100 a barrel on Sunday as dealers bet on a swift recovery of the nation's energy production after Hurricane Ike.

Early reports from emergency officials and oil companies indicated little or no severe damage to infrastructure -- signaling a possible quick recovery to production in the coming days.

"The oil market is selling off because the early indications show Ike didn't do as much damage as feared," said Chris Jarvis, senior analyst at Caprock Risk Management. "That said, this sell-off could prove to be a bit premature, since it could be a while before things get back to normal."

"It may not be possible for us -- and other manufacturers -- to maintain normal supplies in the coming days," Chevron Corp (CVX.N: Quote, Profile, Research, Stock Buzz) said in a statement.

http://www.reuters.com/article/businessNews/idUSSIN4333720080914?feedType=RSS&feedName=businessNews

 

[rodmike9]

Quote from Cutten:

Is your bid still there?

no, but we are long nov calls in nat gas and crude

anyway, tough mkt