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Nation’s Largest Oil Refinery Compelled To Shut Down As Harvey Floods Port Arthur

The biggest oil refinery within the country is shutting down as Hurricane Harvey causes extra catastrophic flooding, and extra have followed go well with.

Early Wednesday, Motiva stated it started closing its Port Arthur refinery “in response to rising native flood situations.” The plant won’t open till flood waters recede.

Motiva had been steadily lowering manufacturing at the plant for days. Late Tuesday it was running at solely forty% capacity.

Harvey, which has been downgraded to a tropical storm, made a second landfall Wednesday close to the Louisiana-Texas border. It is predicted to deliver winds of 30 to forty mph and a 2- to four-foot storm surge in the area.

Port Arthur is located alongside oil and gas producing formations in oklahoma the border of both states. Mayor Derrick Freeman said on Fb overnight that the “entire city is underwater right now.”

All refineries in the area have been severely affected by the storm. One other company, Valero introduced midday Wednesday that it had ceased operations at its Port Arthur refinery.

“Resulting from flooding and potential power provide interruption, Valero’s Port Arthur refinery has shut down in a protected, managed manner,” the corporate mentioned in a statement.

Total Petrochemicals said it shut down its Port Arthur refinery after it misplaced power Tuesday evening.
And ExxonMobil (XOM) announced Wednesday that it would shutter another refinery in nearby Beaumont, citing Harvey-associated “operational points.”

Exxon issued considered one of the first closures for its oil refinery in Baytown, Texas on Sunday. The company mentioned it discovered roof injury at the plant, which is oil and gas producing formations in oklahoma the second-largest in the country.

Thirteen oil refineries remain offline due to the storm, and flooding has knocked out about 22% of the nation’s refining capability, according to the most recent replace from S&P International Platts.

Related: Shale oil boom softens the power blow from Harvey
Some plants — like Valero’s refineries in Corpus Christi and Three Rivers — are beginning to resume operations. But it would take some time earlier than they’re absolutely back online.

The lowered capability means significantly smaller amounts of oil could be became gasoline and different products like jet gasoline.

Analysts predict drivers will see higher gasoline prices as a result of restrictions on supply.
The Motiva refinery is owned by Saudi Arabia. Saudi Aramco, the kingdom’s state-owned oil giant, took full management of the plant in Could.

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