• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 52 mins China wields coronavirus to nationalize American-owned carmaker
  • 18 mins Open letter from Politico about US-russian relations
  • 2 days Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 8 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 3 hours US will pay for companies to bring supply chains home from China: Kudlow - COVID-19 has highlighted the problem of relying too heavily on one country for production
  • 2 days China's impending economic meltdown
  • 2 days Why Oil could hit $100
  • 1 day Liquid Air Battery
  • 1 day What the heroin industry can teach us about solar power (BBC)
  • 2 days Rational analysis of CV19 from Harvard Medical School
  • 2 days The Truth about Chinese and Indian Engineering
  • 2 days Brent above $45. Holding breath for $50??
  • 2 days Pompeo upsets China; oil & gas prices to fall
  • 3 days The World is Facing a Solar Panel Waste Problem

Shell Idles Unit At Texas Refinery Due To Demand Crash

Shell is idling a unit at the Deer Park, Texas, refinery for several months due to low demand for fuels, sources familiar with the refinery’s operations told Reuters.

The 318,000-barrels-per-day refinery operates under a 50-50 joint venture set up in 1993 between Shell and Mexico’s state oil firm Pemex.   

The refinery is now idling the sulfur recovery unit (SRU) due to the depressed demand, while currently, the facility operates at around 75 percent of its capacity, according to Reuters’ sources.  

According to the latest EIA estimates, average refinery utilization at U.S. refineries stood at 77.5 percent in the week to July 3, with utilization rate slowly creeping up over the past few weeks from the 67.9 percent capacity utilization rate in the first week of May.

Typically, U.S. refinery utilization rates at this time of the year with the driving season are around 95 percent.

Apart from short-term plans for its refineries in the United States, Shell has a longer-term plan to sell several of its wholly owned sites as part of a new downstream strategy.

Earlier this week, a Shell spokesman told Reuters that the supermajor was considering selling its 240,000-bpd refinery in Convent, Louisiana, as part of a broader strategy to reshape its refining portfolio.

Shell is now implementing a new downstream strategy to reshape its refining business towards a smaller, smarter refining portfolio focused on further integration with Shell Trading hubs, Chemicals, and Marketing.

As part of this strategy, Shell sold earlier this year the Martinez Refinery in California to PBF Holding Company for US$1.2 billion.

Shell also announced in March that it started marketing the sale of the Mobile refinery in Alabama and the Puget Sound refinery near Anacortes in Washington as part of its new downstream strategy. At the time, however, Shell said that the U.S. Gulf Coast would remain a key manufacturing hub for the company, along with Rotterdam and Singapore.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News