API says US refineries running at capacity

WASHINGTON, DCThe American Petroleum Institute said Monday that US refineries are running flat out to ensure that consumers have a readily available heating fuel supply this winter. John Felmy, API's policy analysis and statistics director, said while the Clinton administration's release of crude from the Strategic Petroleum Reserve (SPR) may reduce crude and product prices somewhat, it will not necessarily translate to increased production of heating oil. He explained that with the nation's refineries running at near capacity, their ability to process additional crude is limited. Felmy said, "There is a limit to how hard refineries can run, consistent with providing for the safety of refinery workers. Companies must soon 'turnaround' their refineries to make more heating oil this fall, and be prepared to meet potential increases in demand. During a turnaround, like the one traditionally scheduled in the fall, planned vital inspection and maintenance is performed to ensure safe and efficient operations." He said US refineries, as of a week ago, were operating at 95% of their capacity, which is higher than last year and well above historic levels. "It may be possible to push production higher for very brief periods, but the decision to do so must be made by individual companies, which will not compromise the safety of workers," said Felmy. He said despite concern about low heating oil inventories for this time of year, "most heating oil supplied during the heating oil seasonin the range of 90%comes directly from refinery production to users, by-passing the inventory system." Felmy said record amounts of gasoline and distillate fuel have been produced this year. Since April, building of heating oil inventories has been substantial, but stocks started at lower levels and remain at historical lows.

http://ogj.pennnet.com/Content/cd_anchor_article/1,1052,OGJ_7_NEWS_SUB_82188_1,00.html

-- Martin Thompson (mthom1927@aol.com), September 28, 2000

Answers

Well, this article is clear enough. Refineries are the bottleneck, which will screw up the production of heating oil - and, not mentioned, but I assume diesel, too.

-- QMan (qman@c-zone.net), September 28, 2000.

Ain't no doubt about it. With refineries as the bottleneck, all the crude oil and all the king's men won't put Humpty Dumpty together again.

-- R2D2 (r2d2@earthend.net), September 28, 2000.

Well another lecture from an organization that hasn't brought 1 barrel of oil to the surface. The API is a not for profit organization and a mouth piece for the oil industry. I would like to inform this nincompoop that a turnaround is a shut down of the unit so that it can be repaired. A turnaround is normally a scheduled event: a small scale overhaul lasting only a few months. If we had fewer experts and more doers, this problem might get solved.

Machinery is not designed to operate month after month after month at full load. These loads should be of short duration. The fact that the utilities and refineries are operating at such high capacity for such long periods of time will ensure that later on these plants will pile of rubble.

-- David Williams (DAVIDWILL@prodigy.net), September 29, 2000.