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Chevron refinery fire may raise gas prices
A fire at Chevron Corp.'s Richmond oil refinery may push gasoline prices higher today as it disrupts fuel output at the state's third-largest crude-processing plant.
Chevron's 240,000-barrel-a-day refinery shut its No. 4 crude unit after the fire Monday, Heather Kulp, a Chevron spokeswoman, said Tuesday. The fire is out, she said, and the plant is maintaining a small controlled burn at the crude unit to relieve pressure. Other units are operating at unknown levels, Kulp said.
"We don't know how long the crude unit will be down, and they may have had to shut other refining units as well," said Andy Lipow, president of Lipow Oil Associates LLC in Houston. "I expect that if several units shut, gasoline prices will spike at least 10 cents today" in California, he said.
California-blend gasoline, or Carbob, in San Francisco gained 1.5 cents to 5.5 cents a gallon above futures traded on the New York Mercantile Exchange Monday, data compiled by Bloomberg show. It rose as high as 14.75 cents on Aug. 2 from a discount of 12 cents on July 18.
Carbob spot prices Tuesday may be 24 cents higher than yesterday and diesel may jump 4 cents, said Bob van der Valk, a petroleum industry analyst in Terry, Mont. He said BP Plc's Cherry Point refinery in Washington took four months to reach full operation after a fire in February.
"These increases will be passed along to retail pumps at California and gas stations as far north as Seattle," he said.
No estimate
Kulp said the refinery doesn't have an estimate for when it will restart the crude unit. The No. 4 crude unit has a daily throughput capacity of 257,200 barrels a day, according to an Aug. 11, 2011, document on file with the Bay Area Air Quality Management District.
Other process units at the refinery include a 64,800-barrel-a-day diesel hydrotreater, a 96,000-barrel-a-day jet hydrotreater, a 57,600-barrel-a-day naphtha hydrotreater, a 90,000-barrel-a-day fluid catalytic cracker plant and a 60,900- barrel-a-day isocracker, according to the document.
The fire in Richmond may have been caused by a leaking diesel line, said Melissa Ritchie, a Chevron spokeswoman. All employees at the refinery have been accounted for, and three employees were treated on site for minor injuries, said spokesman Brent Tippen.
Evacuation reported
The plant reported an evacuation after the fire broke out, a filing with the California Emergency Management Agency shows.
The Contra Costa County health-services department issued a shelter-in-place advisory for Richmond, North Richmond and San Pablo because of the fire. The agency recommended that residents stay inside their homes or the nearest buildings, bring pets indoors, close doors and windows, and make sure vents and fireplaces are closed.
As of 11:30 p.m. local time Monday about 200 people had sought services at the Doctors Medical Center in San Pablo, 5 miles from the refinery, according to the center. The people complained of respiratory problems and continued to arrive throughout the night, according to the statement.
110 years
The Richmond plant is about 110 years old, according to Chevron's website. Built on a peninsula of low hills rising from San Francisco Bay, the refinery became the West Coast's largest and most advanced upon its completion in July 1902. The refinery produces gasoline, jet fuel, diesel, lubricants and other oil products, according to the company's website.
Chevron shut a crude unit at Richmond on Nov. 14 after vacuum residuum, made up of heavy hydrocarbons, leaked from a bleeder on a filter and "auto ignited," Chevron said in a filing to county regulators following that incident. The unit was returned to service later that same month, two people with direct knowledge of the plant's operations said Nov. 29. A crude unit at the refinery also caught fire in January 2007.
The county's hazardous materials division was at the refinery testing air quality after yesterday's fire, according to a notice from the county health department. The plant released sulfur dioxide, nitrogen oxide, hydrogen oxide, sulfuric acid and nitrogen dioxide because of the fire, the state filing shows
Read more: http://www.sfgate.com/business/article/Chevron-refinery-fire-may-raise-gas-prices-3769112.php#ixzz22smE0XZo
Chevron's 240,000-barrel-a-day refinery shut its No. 4 crude unit after the fire Monday, Heather Kulp, a Chevron spokeswoman, said Tuesday. The fire is out, she said, and the plant is maintaining a small controlled burn at the crude unit to relieve pressure. Other units are operating at unknown levels, Kulp said.
"We don't know how long the crude unit will be down, and they may have had to shut other refining units as well," said Andy Lipow, president of Lipow Oil Associates LLC in Houston. "I expect that if several units shut, gasoline prices will spike at least 10 cents today" in California, he said.
California-blend gasoline, or Carbob, in San Francisco gained 1.5 cents to 5.5 cents a gallon above futures traded on the New York Mercantile Exchange Monday, data compiled by Bloomberg show. It rose as high as 14.75 cents on Aug. 2 from a discount of 12 cents on July 18.
Carbob spot prices Tuesday may be 24 cents higher than yesterday and diesel may jump 4 cents, said Bob van der Valk, a petroleum industry analyst in Terry, Mont. He said BP Plc's Cherry Point refinery in Washington took four months to reach full operation after a fire in February.
"These increases will be passed along to retail pumps at California and gas stations as far north as Seattle," he said.
No estimate
Kulp said the refinery doesn't have an estimate for when it will restart the crude unit. The No. 4 crude unit has a daily throughput capacity of 257,200 barrels a day, according to an Aug. 11, 2011, document on file with the Bay Area Air Quality Management District.
Other process units at the refinery include a 64,800-barrel-a-day diesel hydrotreater, a 96,000-barrel-a-day jet hydrotreater, a 57,600-barrel-a-day naphtha hydrotreater, a 90,000-barrel-a-day fluid catalytic cracker plant and a 60,900- barrel-a-day isocracker, according to the document.
The fire in Richmond may have been caused by a leaking diesel line, said Melissa Ritchie, a Chevron spokeswoman. All employees at the refinery have been accounted for, and three employees were treated on site for minor injuries, said spokesman Brent Tippen.
Evacuation reported
The plant reported an evacuation after the fire broke out, a filing with the California Emergency Management Agency shows.
The Contra Costa County health-services department issued a shelter-in-place advisory for Richmond, North Richmond and San Pablo because of the fire. The agency recommended that residents stay inside their homes or the nearest buildings, bring pets indoors, close doors and windows, and make sure vents and fireplaces are closed.
As of 11:30 p.m. local time Monday about 200 people had sought services at the Doctors Medical Center in San Pablo, 5 miles from the refinery, according to the center. The people complained of respiratory problems and continued to arrive throughout the night, according to the statement.
110 years
The Richmond plant is about 110 years old, according to Chevron's website. Built on a peninsula of low hills rising from San Francisco Bay, the refinery became the West Coast's largest and most advanced upon its completion in July 1902. The refinery produces gasoline, jet fuel, diesel, lubricants and other oil products, according to the company's website.
Chevron shut a crude unit at Richmond on Nov. 14 after vacuum residuum, made up of heavy hydrocarbons, leaked from a bleeder on a filter and "auto ignited," Chevron said in a filing to county regulators following that incident. The unit was returned to service later that same month, two people with direct knowledge of the plant's operations said Nov. 29. A crude unit at the refinery also caught fire in January 2007.
The county's hazardous materials division was at the refinery testing air quality after yesterday's fire, according to a notice from the county health department. The plant released sulfur dioxide, nitrogen oxide, hydrogen oxide, sulfuric acid and nitrogen dioxide because of the fire, the state filing shows
Read more: http://www.sfgate.com/business/article/Chevron-refinery-fire-may-raise-gas-prices-3769112.php#ixzz22smE0XZo
Our gas has gone up approximately $0.45 over the past 2 weeks. For what reason?
I agree that no matter what happens or where it happens, it's used as an excuse to raise gas prices.
Agree with OH - just because this one refinery has a problem, doesn't mean there's a lot less gas around. Besides, that just happened yesterday; what's accounted for the rise, over the last 2 weeks?
Typically, gas rises just before a holiday weekend. Hate to see what it will be like by Labor Day.
I agree that no matter what happens or where it happens, it's used as an excuse to raise gas prices.
Agree with OH - just because this one refinery has a problem, doesn't mean there's a lot less gas around. Besides, that just happened yesterday; what's accounted for the rise, over the last 2 weeks?
Typically, gas rises just before a holiday weekend. Hate to see what it will be like by Labor Day.
Anything to raise the price of gas... Keep in mind too, traditionally the Labor Day Weekend is one of the most expensive times of year for gas...
It's the big oil is the biggest racket alongside politics.
It's the big oil is the biggest racket alongside politics.
Fire... raise the price of gas.
Drought... raise the price of gas.
Obama farted... raise the price of gas.
Global warming... raise the price of gas.
Oil company profits are down... raise the price of gas.
Oil company profits are up... raise the price of gas.
The wind blew from the South yesterday... raise the price of gas.
It's hot today... raise the price of gas.
Wall Street will use ANYTHING to raise the price on a barrel of oil. Wall Street speculators control the cost of fuel in this country, and if they feel that oil or gasoline production is threatened in any way, oil/gas will increase in price.
Who pays for it? You and me.
Drought... raise the price of gas.
Obama farted... raise the price of gas.
Global warming... raise the price of gas.
Oil company profits are down... raise the price of gas.
Oil company profits are up... raise the price of gas.
The wind blew from the South yesterday... raise the price of gas.
It's hot today... raise the price of gas.
Wall Street will use ANYTHING to raise the price on a barrel of oil. Wall Street speculators control the cost of fuel in this country, and if they feel that oil or gasoline production is threatened in any way, oil/gas will increase in price.
Who pays for it? You and me.
Do you really think we have less gasoline because of this ?
I doubt it.
I doubt it.
Just like if any major place has a fire and production is lost, prices get raised. If we took out 1 million loafes of bread then don't you think that the price of bread would go up?
It about losing production and less on the market. Supply and demand.
It about losing production and less on the market. Supply and demand.
Am I the only one that has noticed the price of gas has gone up over the last 2 weeks by about 15cents a gallon? So, it seems anything goes when raising the price of gas.
Okay, this does get me mad.
Why does the public have to pay for Chevron's fire ? Don't tell me they don't have insurance covering these things, and aren't making enough profits already. Why does the cost of an accident there have to be paid by everyone in California driving a vehicle ?
Why does the public have to pay for Chevron's fire ? Don't tell me they don't have insurance covering these things, and aren't making enough profits already. Why does the cost of an accident there have to be paid by everyone in California driving a vehicle ?
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