Posted on 08/17/2016 9:52:23 AM PDT by PAR35
Exxon Mobil Corp. began shutting units at the fourth-largest refinery in the U.S. as record flooding in Louisiana sent tens of thousands fleeing from their homes.
The Baton Rouge refinery in Louisiana has begun shutting units as the flooding threatened an off-site liquefied petroleum gas storage facility, a person familiar with operations said Wednesday. The plant, located along the Mississippi River, can process 502,500 barrels of crude a day into gasoline, diesel and other fuels.
(Excerpt) Read more at dallasnews.com ...
The refinery is on the north side of Baton Rouge, near the airport, Southern University and Scotlandville.
Much of the reported flooding thus far has been near the Amite river west of Baton Rouge.
Stand by for higher gas prices.
Seems that due to flooding disruptions at an off-site LPG storage (Sorrento), the Baton Rouge Refinery has to cut back through-put due to lack of storage access for new production. They have shut-down 110k bpd of capacity out of the 502k bpd capacity at this time. At this time, this is a modest impact and likely short run. Expect they have the shut-down unit in hot stand-by to allow restarting within a day or so assuming the expectation of getting Sorrento back quickly.
Explains the dime bump in prices I noticed on the way to work this morning. Now at $1.999/gal
The gasoline in their below ground tanks was bought before the flood. Price gouging.
There goes gas prices!
The way it works is prices are bumped as soon as the event occurs, but they only come down as cheaper gasoline reached the station’s tanks. They make their best profits off of disasters.
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