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US oil industry struggling with freezing temperatures – Reuters

An Arctic storm has reportedly affected the operations of multiple refineries from North Dakota to Texas

A severe winter storm shut a US Gulf Coast refinery in Texas on Tuesday, caused a glitch at some other petroleum plants, and halved North Dakota oil production, Reuters reported on Wednesday.

People familiar with TotalEnergies’ operations told the outlet that a 38,000 barrel-per-day (bpd) refinery in Port Arthur, Texas, was examining units after a plantwide blackout on Tuesday morning due to a brutal cold snap.

In North Dakota, oil production declined by half on Tuesday to between 600,000 and 650,000 barrels per day, according to the North Dakota Pipeline Authority.

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The report also said that Exxon Mobil returned a gasoline-producing fluidic catalytic cracker and a coker at its 564,440-bpd refinery in the Houston suburb of Baytown, Texas, to normal operation after a malfunction triggered by blistering cold.

Flint Hills Resources’ 343,000-bpd refinery in Corpus Christi, Texas, was reportedly also significantly impacted by unseasonably cold weather. Meanwhile, Petroleum company Delek reported a malfunction due to cold temperatures on Sunday at its 73,000-bpd refinery in Big Spring, Texas.

Another petroleum refineries company, Valero Energy, launched a scheduled overhaul on the large crude distillation unit (CDU) at its 335,000-bpd refinery in Port Arthur on Monday, according to people familiar with plant operations. Reuters also reported that three refineries in Port Arthur, including Motiva Enterprises’ 626,000-bpd plant, have major units shut.


READ MORE: Tesla charging system collapses in major US city (PHOTOS)

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A record-breaking Arctic blast has been sweeping across much of the United States, keeping schools closed and flights grounded. Wind chills in parts of North Dakota have been reaching -70F (-56C). According to a database maintained by USA Today, 197,000 households across the country have no power as of early on Wednesday, including 22,000 utility customers in Texas.

For more stories on economy & finance visit RT’s business section

January 18, 2024 at 04:03PM
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