June 2, 2012:

Today marks the first anniversary of the devastating Chevron refinery blast which killed four workers at the plant near Milford Haven. Sion Morgan caught up with a community scarred by the events of June 2, 2011.  Sitting proudly on the mouth of the River Cleddau in picturesque Pembrokeshire, the natural landscape surrounding Milford Haven conceals an industrial heart that provides life to the town’s population of 13,000. Its natural deep water port, the third biggest in the UK, handles more than 20% of the UK’s energy, with a cluster of related businesses along the Waterway driving economic activity in West Waless. But on June 2, 2011, the harsh realities of that industry were starkly observed by people across Wales as four members of the tight-knit community lost their lives in Britain’s worst refinery disaster for almost four decades.

The families of Julie Jones, 54, Denny Riley, 52, Robert Broome, 48, and Andrew Jenkins, 33, are no closer to learning why a 730 cubic metre storage tank at the Valero (formerly Chevron) oil plant in Rhoscrowther exploded with such devastating effect that day. Surviving victim Andrew Phillips still does not know why or how his colleagues perished. Now, as the town marks the one year anniversary of the disaster, the people of Milford Haven reflect on a tragedy which will shape the community for generations to come. “A year on, people here have moved on but have not forgotten,” said Milford Haven port chaplain Steve Traynor. “The amazing thing about Milford Haven is its community spirit, and the disaster did draw people together in an inspiring way.

How we first reported the incident: Four killed in explosion at Pembroke Chevron refinery.

“You have to remember, though, that the industry here is the lifeblood of the community. Almost everybody who lives in the area is connected in some way to our refineries and oil companies and so if you took the industry away the community would disappear.” Villagers in nearby Angle and beyond can still vividly remember the bang and the sweeping expanse of thick, black smoke which engulfed everything in its path 12 months ago. Rob Noble from the Old Point House pub said: “It’s something that anyone who saw or heard it will never forget. The noise actually shook the windows of the pub.” In Milford Haven resident Jane Philpott can still smell the burning black smog. “Everyone here will tell you the same,” she said. “The awful stench rising up into the air, and the realisation that nobody near the blast could have survived it. “I never want to experience that sense of blind panic again, when people were phoning each other for news, desperately trying to reach loved ones to check they were fine.” Another resident, Tony Davies, said: “Even now, months later I don’t think a week goes by when you aren’t reminded about what happened.

“Whether you here someone talking about it in the shop, see an article in the paper or hear about some other industrial incident, it’s always in the back of your mind. “And of course every day we see the refinery, the chimney stacks, huge ships in the port. “It reminds you of what happened, but it also reminds you that life goes on in a strange way.”

Inquest opened into deaths of Chevron refinery explosion victims

Mr Noble added: “The aftermath here has been tinged with a feeling of low-key anger. “Angle in particular is a village where most, if not all the community is connected with the refinery or businesses that feed it. “And everyone who worked there knew the people who died.  “People want to know why their friends and loved ones have gone. “There seems to be an underlying sense of mistrust but of course we all understand that investigations must be thorough. “It is not something that is spoken about so much anymore but it’s not something that will be forgotten.” A renewed sense of community saw thousands gather at Milford Haven RFC’s Observatory Ground in Hakin in August for a charity rugby tournament which raised thousands for the families of the victims. Milford Haven RFC full-back Lee Riley, the plasterer son of refinery blast victim Mr Riley, said: “All the lads here grew up with my dad, they all knew him and were keen to get involved.”

Organiser Darren Lewis said: “Without a doubt the whole community here felt the effect of what happened. “In the aftermath local businesses supported us and everyone pulled together.” Today, all personnel at the Valero refinery will gather together for a private remembrance and period of silence to remember the tragic incident which took the lives of four contractor colleagues. A spokesman for the company said: “Neighbouring industrial sites surrounding the Haven Waterway will also mark the silence at 1.30pm.

“Prayers will be offered in the towns of Pembroke, Milford Haven and surrounding areas in remembrance of those who lost their lives.” Milford Haven mayor Guy Woodham will also call for a moment of reflection at the town’s jubilee celebrations today. “It is amazing just how quickly a year has passed since the awful tragedy,” he said. “It feels like far less time, probably because the community remains deeply affected by what happened. “It shocked everybody but of course also brought them together and as the anniversary approaches that awful raw emotion has been rekindled for many, specially I imagine for the families of those who died and everyone who knew them.” Mr Woodham added: “Milford Haven is an area of extreme natural beauty but we are also in an area driven by the industry created from our waterway and the Chevron disaster reminded everyone here just how vulnerable we are in this location. “That is why the most important thing now is that lessons are learnt.

“Of course there is also a feeling that we cannot yet get closure because the findings of investigations into the explosion's cause still hang over us. “It's obviously vitally important that no stone is left unturned and so that is why the process has taken so long. “But for many it is difficult to move on without knowing why this happened so we can stop it from happening again.” Earlier this week Dyfed-Powys Police revealed that two employees of US oil giant Chevron have been questioned in connection with gross negligence manslaughter following the deadly explosion. An investigation into the cause of the explosion is ongoing. It is being conducted by Dyfed-Powys Police and also a dedicated team at the Health and Safety Executive (HSE). A spokesman for the force said in excess of 1,800 potential witnesses have come forward in 12 months with over 200 providing statements to date. A spokesman for Valero said: “The HSE and Police investigation into the incident is on-going and Chevron and Valero continue to provide their full co-operation to all the investigators.”

Port chaplain Steve Traynor added: “The important thing to do, and the thing that people are united in achieving, is making sure lessons are learnt, changes are made and a tragedy like this never happens again. “If you take another recent anniversary as an example, we have just marked 100 years since the Titanic sank. “It was obviously a very long time ago but the changes made in protocol, design, almost every aspect of shipping since then has made a huge difference. “Lessons must and will be learnt but we will never forget those who lost their lives.”

By WalesOnline

June 2, 2012:

PORT ARTHUR, Texas – Royal Dutch Shell and Saudi Aramco unveiled the $10 billion expansion of their joint-venture Motiva Enterprises Texas Gulf Coast refinery on Thursday as it neared its top capacity, taking the crown as the largest in the U.S. “This ambitious expansion creates this country’s largest refinery and one of the most advanced anywhere,” said Shell Chief Executive Peter Voser under a huge party tent next to the churning plant. With the completion of a new crude distillation unit (CDU) and associated units, the refinery’s newly minted 600,000 bpd capacity eclipses Exxon Mobil Corp’s 560,640 bpd Baytown, Texas, refinery, as the largest in the country. The refinery’s pre-expansion capacity was 285,000 bpd.

Motiva also aims to increase fuel exports to up to 100,000 barrels per day once pipeline infrastructure from the plant to its docks is completed, said Bob Pease, Motiva president and CEO. He didn’t say how much the refinery currently exports. Last year the U.S. became a net exporter for the first time since 1949, having shipped out 439,000 bpd more fuel than was imported. The Motiva project was launched in 2007, when U.S. fuel demand was up and refinery capacity was seen as inadequate. That changed when the global financial crisis hit, slashing demand and prompting closures of several unprofitable refineries, particularly in the U.S. Northeast. Motiva suspended work on the project for about a year in late 2008 to rein in costs, but did not intend to abandon it, said Khalid Al-Falih, president and chief executive of Saudi Aramco, the state-owned oil company of OPEC member Saudi Arabia. What had been estimated by analysts to be a $7 billion project was, in the end, a $10 billion project.

“Rather than cut and run, we pressed ahead with our long-term commitment,” he said. “We’re confident in the return on investment, despite the cost, will be very healthy.” Motiva Enterprises is a joint venture between Shell Oil, the U.S. unit of Royal Dutch Shell and Saudi Aramco. The Port Arthur refinery is one of three Motiva plants in the U.S., the other two being in Louisiana. Tom Purves, vice president of manufacturing of the expansion project, told Reuters on Thursday the plant was “closing in” on its 600,000 bpd capacity sooner than expected. He said it would reach that capacity in the current quarter rather than the third quarter this year as previously expected. “It’s all in place,” he said.

The expansion gives Motiva the flexibility to run lower-cost heavy oil from South America, Latin America and potentially from Canada, if the delayed Keystone XL pipeline is built. Other Gulf Coast refiners like Marathon Petroleum Corp have completed similar expansions, while excess refining capacity in the distressed East Coast market has shut down. Profit margins at Gulf Coast refineries have lagged those in the Midwest, which have benefited more from cheap supplies of heavy Canadian crude as well as cheaper inland U.S crude output. Several Gulf Coast refiners with plants able to process that kind of heavy crude — like Marathon and Valero Energy Corp — are vocal proponents of Keystone and its ability to bring more Canadian crude to the Gulf market. However, Voser said Motiva doesn’t need Canadian crude to be profitable. Pre-expansion, the refinery had processed mostly medium-sour crude. Now it can run heavier crudes from South America, Latin America, Saudi Arabia and elsewhere as well as light-sweet domestic crude, including supply from U.S. shale oil reservoirs like North Dakota’s Bakken where supply is booming.

Running Canadian crude “is always a possibility, but the refinery will not depend on that,” Voser said. “We are not dependent on that crude, but we have the flexibility to take it.” Refineries that have closed lack that flexibility. Delta Air Lines has agreed to buy Phillips 66’s shut 185,000 bpd Trainer, Pennsylvania refinery for $180 million, while talks are ongoing between Sunoco Inc and Carlyle Group about a joint venture of the two with Carlyle running Sunoco’s 335,000 bpd Philadelphia refinery. Both run light-sweet crude, and lack of large-scale infrastructure to transport Bakken and other cheap Midwest crude to those plants left them dependent on more expensive Brent-priced crude.

However, Sunoco’s 178,000 bpd Marcus Hook, Pennsylvania, refinery is permanently shut, as is Hess Corp and Venezuelan state oil company PDVSA’s joint-venture 350,000 bpd Hovensa refinery in the U.S. Virgin Islands. “Some refineries are unsuitable for processing more difficult crude on which supply increasingly depends,” Voser said. “They are in the wrong places making the wrong products.” Valero CEO Bill Klesse said at a refining conference in March that he didn’t expect Motiva’s startup to cut into Gulf Coast exports because it offsets the loss of production from Hovensa’s closed refinery in the Virgin Islands.

Voser also told Reuters in March that its partner would be a supplier for the Motiva plant. Pease said Motiva would run heavy Saudi crude from Saudi Aramco for about two months, then branch out to other crudes as well. Not everyone is expanding. Valero shelved a $500 million new coker unit at its 292,000 bpd Port Arthur refinery because that heavy-light differential has narrowed with more light-sweet crude coming into the market. Klesse said differentials are adequate for existing coking capacity along the Gulf Coast at Motiva and other plants. But Valero didn’t see differentials staying wide enough to justify another new coker.

Yet Mark Routt, a senior consultant with KBC in Houston, told Reuters on Wednesday that Gulf Coast refiners are expected to add primary and conversion units over the next decade, though at a slower pace. The advent of North American shale natural gas output, which has kept prices hovering near $2.50 per million British thermal units, gives the U.S. a strategic advantage over other potential refined product exporters, such as those in Latin America and Europe, Routt said. As of 2011, the last year figures were avalable, 137 refineries were operating in the United States, according to the U.S. Energy Information Administration.

By Reuters

June 2, 2012:

COLUMBUS, Ohio -- Columbus firefighters are on the scene of a fire at a troubled Columbus oil refinery. Firefighters were dispatched to Heartland Petroleum on the 4000 block of East 5th Avenue in Columbus at 6:43 a.m on a report of a fire. According to firefighters on the scene, an equipment failure caused oil to leak. Vapors from the leaking oil ignited, causing a fire, firefighters said. According to Battalion Chief Michael Fowler, crews isolated the leaking line and allowed what was already in the line to burn off. Hazmat crews are on the scene. East 5th Avenue was closed in both directions in the area, but has reopened.

By nbc4i.com

June 2, 2012:

BP PLC took down a crude-distillation unit for unplanned maintenance at its refinery in Whiting, Ind., a person familiar with the plant's operations said Friday. The crude unit was the smallest of the three at the 405,000-barrel-a-day refinery, the source said. It was unknown when the unit would come back online. Crude-distillation units are used in the first step in refining oil. The downed unit sent Midwest fuel spot prices higher. Chicago's spot conventional-blendstock for oxygenate blending, or CBOB, traded up to a 10-cent a gallon premium to July Nymex, up from 6 cents over the benchmark on Thursday, a Chicago trader said.

Ultralow-sulfur diesel fuel for prompt delivery in Chicago was quoted as high as 22 cents a gallon over July Nymex heating oil futures, although other trades were done only as high as 16 cents over the benchmark. ULSD traded between 10 cents and 11 cents over July Nymex on Thursday. BP is spending several billion dollars to upgrade the plant to process heavy crude oil, mainly from western Canada.

By Dow Jones Newswires

June 1,2012:

California-blend gasoline fell against futures as stockpiles of the fuel grew after refineries in the state returned to service after maintenance shutdowns. Premiums in Portland, Oregon, retreated from record highs. California-blend, or Carbob, gasoline in San Francisco weakened 4.75 cents to a premium of 19.25 cents a gallon versus gasoline futures traded on the New York Mercantile Exchange, according to data compiled by Bloomberg. Los Angeles Carbob fell 4.75 cents to a premium of 13.25 cents a gallon. Both premiums are the smallest since May 22. The average retail price for regular gas in the Los Angeles area was $4.285 a gallon as of 6 a.m. local time, 4.7 cents less than last week, the Automobile Club of Southern California said.

“Prices continue to fall from the spike that occurred earlier this month, indicating that supply issues in California are being addressed or are at least not as bad as feared,” Jeffrey Spring, a spokesman for the Auto Club, said in a statement e-mailed from Los Angeles. “The gas-price drops have been smaller in recent days, so it’s uncertain how long the downward trend will continue.” The California Energy Commission released a report yesterday showing that stocks of Carbob increased 12 percent last week from the previous week to 5.13 million barrels. BP Plc (BP/) returned to normal rates May 29 at its 266,000- barrel-a-day plant at Cherry Point, Washington’s largest refinery, according to a person familiar with operations at the plant. BP shut the refinery after a Feb. 17 fire and moved up a maintenance turnaround to coincide with repairs.

Conventional, 87-octane gasoline in Portland, Oregon, plunged 42 cents to a premium of 42.5 cents a gallon versus New York futures. The fuel rose to its highest-ever level of 91 cents above futures May 23. Low-sulfur diesel in Portland weakened 3.5 cents to a 15- cent-a-gallon premium to New York heating oil futures. California-blend, or CARB, diesel weakened 0.38 cent in Los Angeles to 5.50 cents above futures. In San Francisco it was unchanged at a premium of 7 cents.

By Bloomberg