US Buyers Turn to Offshore Crude
U.S. sanctions on Venezuela's oil industry have made winners out of Royal Dutch Shell Plc and BP Plc, Gulf of Mexico offshore heavyweights, as refiners in need of substitutes are scooping up oil produced in the region.Those two companies produce notable amounts of crude oil that refiners have settled on as the immediate replacement for the heavy Venezuelan crude that U.S. refiners relied on for years. Trading volumes in these grades of oil have surged to the highest in months, and prices touched five-year peaks after sanctions were imposed.U.S.
Phillips 66, Kinder Announce Gray Oak Pipeline Deliveries to Houston
Phillips 66 and Kinder Morgan Inc began on Monday soliciting shipper commitments for crude deliveries on the 900,000 barrel per day (bpd) Gray Oak Pipeline from the Permian Basin to delivery points at or near the Houston Ship Channel, the companies said.The Gray Oak Pipeline would deliver crude to the Houston area through a connection in South Texas. The pipeline is one analysts believe could help alleviate a crude oil transportation bottleneck in the Permian Basin of West Texas and New Mexico. (Reuters, Reporting by Collin Eaton in Houston)
Phillips 66 Reports Soaring Q4 Profit
U.S. refiner Phillips 66 reported a more than four-fold surge in fourth-quarter adjusted profit on Friday, helped by low crude prices that boosted refining margins.On an adjusted basis, net income rose to $2.26 billion, or $4.87 per share, in the quarter, from $548 million, or $1.07 per share, a year earlier.The Houston, Texas-based company said its realized refining margins rose to $16.53 per barrel in the fourth quarter, from $8.98 per barrel a year earlier.Reporting by Arundhati Sarkar
Big Crude Oil Margins Should Boost US Refiner Earnings
U.S. refiners ran full-tilt in the second quarter, fueled by cheap domestic crude and fat margins that should boost earnings, though their heavy activity could eventually saturate the market with gasoline, sapping profits down the road.U.S. independent refiners, including Phillips 66 and Marathon Petroleum Corp, are expected to announce strong results due to the heavy discounts for U.S. and Canadian crude, along with strong fuel demand and lower costs to comply with the nation's biofuel laws…
Phillips 66 Says Alliance, Louisiana, Refinery Shuts After Incident
Phillips 66 on Friday said it began an unscheduled shutdown of its 249,700-barrel-per-day (bpd) Alliance, Louisiana refinery on Thursday as part an on-site emergency response involving a plant worker.* "Phillips 66 continues to work with local emergency responders, including the Plaquemines Parish Sheriff’s Office, to safely respond to the ongoing incident," the company said in an email.* The initial incident occurred at about 9:30 p.m.
Phillips 66 to Expand Texas Natural Gas Liquids Project
U.S. oil refiner Phillips 66 said on Wednesday it planned to spend up to $1.5 billion on the expansion of its natural gas liquids project in Sweeny, Texas.The expansion includes the construction of two natural gas liquids fractionators, with a capacity of 150,000 barrel per day (bpd) each, the company said.DCP Midstream LP said it had an option to buy up to a 30 percent stake in the fractionators.
Subtropical Storm Alberto's Landfall Expected Early Next Week
U.S. Gulf of Mexico producers and refiners are monitoring Subtropical storm Alberto, which is expected to make landfall between east Louisiana and the Florida panhandle early next week, the companies said on Friday. The National Weather Service on Friday predicted the storm would bring heavy rain to the central Gulf Coast region and the southeastern United States later this weekend and continue into early next week. The Louisiana Offshore Oil Port (LOOP)…
Valero Boosts Imports of Venezuelan Oil as Sanctions Loom
U.S. refiner Valero Energy Corp this year boosted its imports of Venezuelan crude ahead of U.S. sanctions over the country's disputed presidential election and as other customers received less of the OPEC-member's exports, according to Thomson Reuters trade flows data.Venezuelan oil production has tumbled to a multi-decade low this year, cutting shipments to buyers in the United States and elsewhere and worsening a severe economic recession. Its crude exports averaged 1.19 million barrels per day (bpd) in the January-April period…
New Rules on Ship Emissions Herald Sea Change for Oil Market
New rules coming into force from 2020 to curb pollution produced by the world's ships are worrying everyone from OPEC oil producers to bunker fuel sellers and shipping companies.The regulations will slash emissions of sulfur, which is blamed for causing respiratory diseases and is a component of acid rain that damages vegetation and wildlife.But the energy and shipping industries are ill-prepared, say analysts, with refiners likely to struggle to…
Refiner Phillips 66 Reports Q1 Profit Dip
U.S. oil refiner Phillips 66 reported a 2 percent fall in first-quarter profit on Friday, hurt by higher costs. The company's consolidated earnings fell to $524 million in the first quarter from $535 million a year earlier. Adjusting for number of shares outstanding the company earned $1.07 per share, from $1.02 per share a year earlier. Adjusting for some items, Phillips 66 earned $512 million from $294 million. Reporting by Taenaz Shakir
Phillips 66 Ferndale Refinery has Power Disruption
A power disruption led to larger-than-normal flaring at the Phillips 66 refinery in Ferndale, Washington on Sunday, the Discover Ferndale news website reported. The incident did not result in any injuries and no off-site impact has been detected, the report quoted the company as saying. Phillips 66, which runs the 101,000 barrel-per-day refinery, could not be immediately reached for comment. Reporting by Arpan Varghese
Oklahoma Orders Cut to Disposal Well Volumes Following Quakes
Oklahoma regulators forced an oil and gas producer to reduce operations on a well used for disposing saltwater following a large earthquake over the weekend that set off a series of seismic activity in the state, Matt Skinner, spokesman for the Oklahoma Corporation Commission (OCC), said on Monday. The temblors occurred near Perry, Oklahoma, in the northwestern part of the state, within an area signaled out by regulators for the frequency of earthquakes from oil and gas production activities.
Venezuela's Crude Sales to U.S. Falls to 15-year Low in February
Venezuela's crude exports to the United States declined in February to a 15-year low as oil production continues falling and President Donald Trump's administration weighs new sanctions on the OPEC country, according to Thomson Reuters data. Financial sanctions imposed by the United States in August on Venezuela and state-run oil firm PDVSA have created obstacles for selling crude cargoes to U.S. refiners, shrinking the number of customers PDVSA has in the U.S.
Refining Margins Push Phillips 66 Q4 Profits
U.S. refiner Phillips 66 on Friday beat analysts' quarterly profit estimates, largely helped by higher refining margins. The company said realized refining margins rose to $8.98 per barrel in the fourth quarter, from $6.47 a year earlier. Excluding one-time items, the company earned $1.07 per share, beating analysts' average estimate of 86 cents, according to Thomson Reuters I/B/E/S. Phillips 66's profit surged in the quarter as the refiner benefited from a $2.74 billion gain due to the recent changes in the U.S. tax law.
Winter Storm Threatens U.S. East Coast Energy Industry
The U.S. energy industry braced for a major test to refineries and power plants as an intense winter storm roared up the Atlantic Coast, bringing heavy snowfall and high winds to a region already beset with several days of extreme cold. The storm is the product of a rapid and rare sharp drop in barometric pressure known as bombogenesis, or bomb cyclone. Heavy snow pounded the East Coast along a front stretching from Maine as far south as North Carolina early on Thursday, knocking out power, icing over roadways and closing hundreds of schools.
Japan's U.S. LPG 2017 Imports hit Record High
U.S. now meets half of Japan's LPG demand; U.S. supplies have soared as part of shale boom. Japan's liquefied petroleum gas (LPG) imports from the United States are expected to double in 2017 to a record and account for around for around half of its total purchases, government and shipping data showed. The surge comes as shale oil and gas output lifts overall U.S. production to rival that of Saudi Arabia and Russia. As with crude oil, the American exports displace LPG from the Middle East…
U.S. Midwest Refiners Boost Output
U.S. refineries from Ohio to Minnesota are capitalizing on access to cheap crude from Western Canada and North Dakota oilfields, helping their region break a historic dependence on fuel from the Gulf Coast while redrawing oil trade maps. Since the early 2000s, crude and fuel flows from the Gulf Coast into the U.S. heartland have been cut in half, as crude coming from Canada and North Dakota has pushed U.S. Midwest refining activity to record levels.
Phillips 66 Partners to buy Phillips 66 Assets
Phillips 66 Partners LP said on Friday it would buy assets from refiner Phillips 66 in a deal valued at $2.4 billion, including debt. Phillips 66 Partners said it would buy a 25 percent interest in each Dakota Access and Energy Transfer Crude Oil pipelines and a 100 percent interest in Merey Sweeny LP fuel-grade coke processing unit. Reporting by John Benny
Six Companies Buy Oil from US Emergency Crude Reserve
Six companies bought 14 million barrels of oil from the U.S. Strategic Petroleum Reserve in a sale required by law to help fund medical research and the federal government, said the Department of Energy on Thursday. BP Oil Supply, Exxon Mobil Corp, Phillips 66 , Shell Trading, Valero Marketing and Supply Company, and Macquarie Commodities Trading bought oil from the reserve, which is held in salt caverns on the Texas and Louisiana coasts. No prices were immediately available. (Reporting by Timothy Gardner; Editing by Lisa Shumaker)
US DoE Releases 500 mb from SPR
The U.S. Energy Department said on Thursday it would release 500,000 barrels of crude oil from the Strategic Petroleum Reserve as Tropical Storm Harvey's disruption of the petroleum industry has sent fuel prices soaring. The first emergency release from the reserve since 2012 will be delivered to the Phillips 66 refinery in Lake Charles, Louisiana, according to a department statement. That plant has not been affected by the storm, which has hammered the Gulf Coast for several days.