• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 19 hours Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 34 mins CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 2 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 7 hours NordStream2
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 hours Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 4 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 4 days Modest drop in oil price: SPRs vs US crude inventory build
  • 5 days 2019 - Attack on Saudi Oil Facilities.
  • 10 hours "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
  • 5 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 6 days Ukrainian Maidan after 8 years

Exxon Slashes Louisiana Refinery Output Amid Crumbling Demand

U.S. oil supermajor ExxonMobil has reduced the run rates at its second-largest refinery in the United States, Baton Rouge in Louisiana, after slumping fuel demand has filled storage tanks, sources with knowledge of the operations at the 502,500-bpd refinery told Reuters on Monday.

Exxon reduced the production processing rate to some 440,000 bpd on Saturday, and the number of contract workers was reduced by 1,800 on Friday, Reuters sources said. The Baton Rouge facility typically employs around 2,000 contract workers.

The Baton Rouge refinery is Exxon’s second-largest refinery and the second-biggest refinery in the state of Louisiana.  

Demand for fuel in the United States, and across the world, is taking a major hit as people are asked or ordered to stay at home as countries grapple with the spread of the coronavirus pandemic. Oil demand in the United States is set to tumble over the following weeks, as cities are under lockdown, non-essential businesses and services are closed, and people are asked to work from home wherever possible.  

Considering that the United States is the largest consumer of crude oil in the world, consuming 19.96 million bpd--or 20 percent of the world’s total, demand in the U.S. alone is set for a steep decline while states and the federal government fight with the growing cases of Covid-19 infections. In the U.S., the transportation sector is the backbone of oil demand, accounting for 9.329 million bpd of all petroleum products consumed in the U.S. in 2018, according to the Energy Information Administration (EIA).

Europe consumes around 7 million bpd of the world’s crude oil demand, or 7 percent of the typical 100-million-bpd demand, and although this demand is smaller than the one in the U.S., European oil demand is plummeting as all major economies, including the worst-coronavirus-hit Italy, Spain, France, and now Germany, are under lockdown, with travel strongly discouraged.

Refining operations in Europe and elsewhere in the world are being curtailed as gasoline and jet fuel demand is falling off a cliff due to the enormous demand destruction in the spreading coronavirus pandemic.

In Europe, oil majors are shutting down refinery units as major economies are under lockdown and flights are severely restricted, Reuters reported on Friday, quoting sources and industry data provider Genscape.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News