[Dan1195]

IIRC generally explosions only affect on portion of a plant. As spectactular as this looks, that probably what happened here. probably knocks production off for a while, but a few months they get replacement parts and stuff and its up and running again.

[eastbay]

It processes somewhere around 1/3 of one percent of daily US oil consumption. Not too much, but we're entering desperate times and need every bbl we can get so this is bad news.

[pup55]

$this->bbcode_second_pass_quote('', 'I')t will be a while before production ramps back up there I imagine.

[Novus]

This is pretty big explosion for such a small facility.

[joeltrout]

I predict this will be a somewhat regular occurrence since our refining system and pipelines are getting pretty old and used to the max and it doesn't look like it will slow down soon.

joeltrout

[pup55]

$this->bbcode_second_pass_quote('', 'I') predict this will be a somewhat regular occurrence

[seahorse]

Simmons has been talking about the problems of aging infrastructure for years. The first real problems go back to the BP problems in Alaska.

[DantesPeak]

$this->bbcode_second_pass_quote('', 'A')lon USA Vice President David Foster said he expected the refinery to be off-line for weeks.

[dohboi]

Aren't we entering the time of year when lots of refineries shut down for regular repairs anyway? I can't figure out that makes the timing of this shut down better or worse.

[DantesPeak]

$this->bbcode_second_pass_quote('', 'A')lon hopes for a partial restart in two months.

[Waterthrush]

I haven't seen any information about the cause. Has it been determined yet? Has it been decided that aging infrastructure caused the explosion?

[aflatoxin]

I heard that it was the crude unit that went up.

No word on when they think it can be fixed. My guess is the folks that work there are still counting their lucky stars.

Probably find out in a couple of weeks.

[emersonbiggins]

Just caught this about the 85kbpd Valero refinery in the local paper (Ardmore, OK) this morning -

Valero is considering selling their Aruba, Memphis, Krotz Springs, Louisiana, and Ardmore, Okla. refineries, mainly because they are smaller units and far from coastal ports.

$this->bbcode_second_pass_quote('', 'L')ocal plant one of four on the block, company says
By Steve Biehn
Staff Writer
Web posted March 16, 2008

...

He said the options could include a sale, joint venture or another potential business transaction. Valero is reportedly negotiating sales for refineries in Aruba, Memphis, Tenn., and Krotz Springs, La. The San Antonio-based company sold its Lima, Ohio, refinery last year.

"We've had a great deal of interest in the plants, including Ardmore," Day said.

He said potential buyers are expected to visit the refinery in the coming weeks.

The Ardmore refinery is an inland facility which utilizes the company's 1,500-mile crude oil pipeline system, third-party pipelines and trucking operations. Day said Valero wants to focus on its core refineries, which are typically large, complex and located near coastal ports.

...

With 17 refineries, Valero is the largest refiner in North America. Over the past several decades, refiners like Valero have increased production at existing refineries rather than build new ones. The last new refinery was built in America in 1983.

[frankthetank]

Probably because there taking it in the backside refining expensive crude in to still cheap gasoline.

[SILENTTODD]

Valero didn’t even exist in southern California ten years ago, now they are everywhere. The closest gas station to my apartment is a Valero station on the local corner, use to be a Chevron.

They have no refineries in California that I know of, so that fuel must be shipped by train or tanker from the east. Unless of course they are just contracting with the existing refineries for their stock.

[pup55]

$this->bbcode_second_pass_quote('', 'V')alero Energy Corp.'s board decision this week to expand its Port Arthur refinery positions the company to remain one of North America's leading refiners for years to come.

The $2.4 billion expansion will result in a 28 percent increase in the refinery's daily crude oil processing by 2011, to 415,000 barrels from 325,000 barrels per day.

[lawnchair]

The company on the roadsign and the company refining the oil typically have nothing to do with each other at all. The only difference in gasolines, station to station, is the patented blend of additives, detergents, stabilizers, etc (less than 1% by volume), and the gas station itself (low turnover stations will have more condensation water in the gas, some run more tests than others).

Numerous small/old refineries have been sold off from the majors over the years. One that comes to mind is the Wynnewood, OK refinery. Small refinery, but a big deal to the small town hosting it. So, basically, the town and local investors helped sign the note to buy it out. It has since caught fire a few times.

One wonders if the majors would defer maintenance on refineries they are planning to sell, to make a little more profit (i.e., do you upgrade the furnace in your house if you are planning to sell it soon?).

[emersonbiggins]

I don't know much about the other refineries, but the Ardmore refinery would make a great candidate for expansion, given its proximity to Cushing, and the largesse of bitumen-derived crude from Alberta that is/will be transiting through that region in the next 10-15 years.

[TheDude]

$this->bbcode_second_pass_quote('', 'O')ur Thorny Oil Patch

Energy Policy: When America's biggest oil refiner contemplates putting almost a third of its refineries on the market, Congress should sit up and take notice. The business climate it has created is hurting our economy.

Valero Energy Corp. is an industry leader that refines more oil than any other in the U.S. The San Antonio, Texas, company had a good run in the stock market this decade, rising 1,400% before earnings topped last year. But it's no longer so easy for the company or any refiner.

Valero will probably sell three of its 17 refineries this year and maybe two more later to focus on its core operations amid what CEO Bill Klesse acknowledged on Tuesday is a weak economy.

But maybe that's because the environment for the energy business in the U.S. has turned downright hostile.

Upstream, oil drilling is off-limits, crimping supply and driving prices ever higher. Downstream, refiners are hit by not only high energy prices, but also bureaucratic regulations, environmental lobbies and special interests that make moving to Asia, where economic growth is still valued, more attractive.

The sorry fact that no new refinery has been built in America since 1983 has been cited so many times that we would have thought someone in Washington would have done something about it by now. But no — it just keeps getting worse.

[Eli]

This could get interesting if China steps up as a buyer, I could see them coming in and cutting up an entire refinery and shipping it off to China.