Saturday, August 13, 2005

Refinery shortage and tired equipment

ConocoPhillips, the largest U.S. oil refiner, is
scheduled to start a Borger, Texas, unit
tomorrow, and Exxon Mobil Corp., the second-
largest U.S. oil refiner, said it restored
production at its Joliet, Illinois, facility over
the weekend after a shutdown July 30. Prices have
climbed 4.3 percent in four sessions on concern
about Saudi supplies.
Oil prices have surged to records this year
partly on concern consumption will outpace
refineries' ability to produce enough fuel in the
fourth quarter, when heating demand peaks.
Refinery units at Chevron Corp., BP Plc, Valero
Energy Corp., Exxon Mobil Corp. and
ConocoPhillips had unplanned shutdowns in recent
weeks. ``When you run at these heavy levels,
you're going to have issues and that's what has
been happening,'' said Subash Chandra, an oil
analyst at Morgan Keegan Inc. in New York.


You can have all the oil you need but without
refining capacity, what have you got?