Refinery Tracker

Downstream Logistics: TransCanada Pipeline Delays Strand Crude at Cushing

On February 15 TransCanada Corporation’s announced delays and cost increases for its proposed Keystone XL project. This will be the first in a new series by Hart Energy’s downstream news team presenting a multi-part analysis of downstream logistics that should unify the seemingly disparate topics of unconventional oil, WTI price discounts to London Brent crude and the beleaguered Canadian pipeline project.

Petroplus Among Top Three Bidders for Lindsey Refinery in U.K., Total Says

French multinational Total S.A. said Petroplus Holdings AG is among the top three likely buyers for its Lindsey, U.K., refinery, according to a February 11 Bloomberg report.

Shell’s New Energy Scenario Forecasts Volatility, Uncertainty

In its February 14 Signals and Signposts report, Royal Dutch Shell Plc. explores future energy scenarios to facilitate a deeper understanding of global developments and the world’s energy supply, use and needs. The report is intended to update thought about energy by considering the impact of the global economic and financial crisis.

Downstream Logistics Player Kinder Morgan Prices Record IPO Above Range

Kinder Morgan, Inc. priced the shares offered in their initial public offer (IPO) above the range targeted in what was already seen as an aggressive valuation, according to the prospectus posted February 11 on the U.S. Securities and Exchange Commission website.

Houston’s First Reserve Private Equity Fund Establishes Asian Unit

Indicative of the growth in strong Asian energy demand and concomitant opportunities in the energy industry, First Reserve Corp., a leading energy industry private equity firm based in Houston, announced February 9 that it has formed First Reserve Asia Ltd. and will open an office in Hong Kong by month’s end.

API Study: U.S. Tax Policy May Favor Foreign Energy Firms

A new study commissioned by the American Petroleum Institute (API) shows that U.S. energy companies will not be able to successfully compete against their foreign counterparts on many international projects, if long-standing rules on taxing foreign income are changed. Janet Clark, Marathon Oil Corp.’s chief financial officer, explained recently that domestic energy firms stand vulnerable to several potential disadvantages, as foreign companies compete to buy into lucrative U.S. oil and gas operations.

Chevron to Sell its Fuels, Lubricants, Aviation Businesses in Spain

California-based multinational energy firm, Chevron Corp., announced February 4 that it has signed an agreement to sell Chevron España S.A. and Chevron Estaciones de Servicio S.L. to Compañía Española de Petróleos, S.A. (CEPSA).

BP Reports €3.1-Billion Loss; Will Divest Texas, California Refineries

BP Plc announced February 1 that it will sell half of its U.S. refining capacity as Europe’s second-largest oil company recovers from the Deepwater Horizon spill in the Gulf of Mexico.

Total’s 2010 Downstream Profits Improve

France’s Total S.A. reported February 11 that its 2010 downstream net earnings rose to US$1.55 billion, up from $1.33 billion in 2009.

Tesoro Boosting Diesel Exports to Latin America

Tesoro Corp. revealed at the Argus Americas Crude Summit in Houston last week that it has boosted distillate exports to Latin America over the past year.

Shell 4Q 2010 Earnings Increase, But Miss Expectations

Europe’s Royal Dutch Shell Plc posted a 48.2% rise in adjusted profit for the fourth quarter of 2010, but missed analyst estimates for the first time in a year on weak refining margins.

Petroplus Profits Improve in 4Q, Full-Year 2010

European independent refiner Petroplus Holdings reported US$65 million net income for fourth-quarter 2010, compared with a net loss of $150 million for fourth-quarter 2009.

Suncor Energy Downstream 4Q 2010 Profits Gain

Canada-based Suncor announced February 2 that better margins and volumes boosted refining and marketing net earnings in fourth-quarter 2010 to Cdn$372 million (US$376 million) versus Cdn$151 million (US$153 million) in fourth-quarter 2009.

Marathon Downstream 2010 Profits Improve

.S.-based Marathon announced February 2 that its downstream refining, marketing and transportation segment earned US$213 million in fourth-quarter 2010, versus an $18-million loss in fourth-quarter 2009.

Refining Strength Drives Portugal’s Galp Energia 4Q Results

On February 11, Portugal’s integrated oil company, Galp Energia, reported that its replacement cost adjusted (RCA) net profit for the twelve months of 2010 rose 43% year-over-year (yoy) to €306 (US$ 414) million. The company also reported new start dates for two ongoing refining upgrade projects.

Cistern Samples Show No Impact From HOVENSA Refinery Releases

The U.S. Environmental Protection Agency (EPA) announced on February 4 that cistern samples had no detectible levels of the chemicals released into the air by the Hovensa refinery on December 9, 2010 air in St. Croix, U.S. Virgin Islands. This EPA announcement comes just days after two other Hovensa announcements on January 26 – In one, the EPA announced fines and an air emission control cost settlement with Hovensa, and a second was made by Hovensa itself announcing crude run capacity reductions and staff restructurings.

Post-Macondo, Chevron Executive Seeks Simpler Operator Interfaces

On January 31, a Chevron executive told attendees of the 16th GE Oil and Gas conference in Italy that April 20, 2010 changed his prior reticence to speak at prior conferences and that the Macondo incident “has created a shift in our business that is neither fully clear nor complete.” He called for simpler operator interfaces in complex industrial systems and better adherence to oil and gas industry standards such as those put out by the American Petroleum Institute covering the upstream to downstream industry.

Extreme Cold Disrupts Crude Supplies to Valero’s Ardmore Refinery

Valero Energy Corporation spokesman Bill Day told Hart Energy’s Refinery Tracker on February 3 that a run rate reduction at one of its Texas refineries has resulted from the extreme cold in the state. Unseasonable cold has riled the state over the last several days, disrupting travel closing businesses and schools, and causing power outages across major urban areas.

PFC Energy Tells Global Industry: Post-Macondo Impact is ‘Enormous’

Robin West of PFC Energy detailed the “enormous” implications of Macondo disaster for an assembly of over 1200 oil and gas industry executives on February 1 in Italy. West, who serves as Chief Executive Officer and Chairman of the energy consultancy he founded, later told Refinery Tracker that regulatory restrictions on drilling are “counter-intuitive” in the face of rising prices.

A First in Over 50 Years: U.S. Exports LNG to U.K

In a first for the new century, and not seen since 5 decades back in the last century when such trading began, the U.S. exported liquefied natural gas (LNG) to the United Kingdom, according to a December 29 Bloomberg report citing JPMorgan Cazenove. The move will likely not be the last, as Refinery Tracker heard from industry sources.

Siemens and Aramco Sign Rotating Equipment Agreement, Will Open Facility

Siemens and Saudi Aramco of Saudi Arabia announced February 9 that they have signed a corporate procurement agreement (CPA), which strengthens the cooperation between the two companies while improving access to Siemens Oil and Gas Division’s rotating equipment and services. Siemens quickly followed that news with a February 15 announcement that the company will establish a manufacturing and service facility in Saudi Arabia for the local production of gas turbines and rotating equipment to support the new agreement.

Legislative Proposals Could Subject U.S. Oil, Nat Gas Companies to Double Taxation: Study

U.S. oil and natural gas companies will not be able to successfully compete against their foreign counterparts on many international energy development projects if longstanding rules on taxing foreign income are changed, according to a new Wood Mackenzie study.

Q&A: WAM Helps Refiners See the Whole Picture

An Interview with WAM CEO Jack Weiss on the Growing Focus on Integrated Supply Chain Planning