UPDATE: Process Oil Supply in wake of Harvey
Updated information from Don Harris, RE Carroll Inc. Process Oil Manager, on the current process oil supply and what to expect in the upcoming weeks:
- Most drum and totes shipments should be able to ship on time given carrier availability.
- Package oil deliveries may be delayed due to package truck capacity issues.
- Bulk oil inventory is available at shipping points.
- Transportation to move the oil bulk from shipping point to customers will be difficult because part of the truck and rail car fleet is trapped in Harvey’s aftermath.
- Customers can expect to have shipping delays of more than one week for any product shipped from the Gulf Coast/Texas/Louisiana
- Customers who receive bulk oil from terminals supplied by refineries should receive shipments in the near term if delivery trucks are available.
- In 3 weeks or so, terminals may have spot supply outages as their inventories are depleted and rail cars and barges are delayed due to Harvey’s clean up.
Closure announcements as of 8/30/2017
- ExxonMobil’s Baytown, Texas, refinery, which houses an API Group I//II base oil plant;
- LyondellBasell’s Group II and naphthenic base oils plant in Houston – Calumet markets these oils
- Valero’s naphthenic base oil plant in Three Rivers, Texas.
- Motiva was preparing to close its giant Group II plant in Port Arthur, Texas.
- Penreco, Calumet’s White oil Refinery in Dickinson, TX White Oil Plant has been closed
- Houston Ship Channel pilots stopped boarding both incoming and outgoing vessels on Friday
- Freeport Harbor Channel is also closed to all traffic
- The ports of Freeport, Galveston, Texas City, and Houston were also closed
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