U.S. REFINERY INSIGHTS: Texas Refineries Nearly Back to Normal

Texas oil refineries may soon be able to put the crippling freeze of 2021 in the rear view mirror.

Nearly a month after an Arctic blast knocked out more than 18 of 30 Texas refineries, and almost 5 million barrels a day of crude-processing capacity, all but two sites have restarted all or a good portion of the production units they need to make gasoline and diesel again.

After a year of slashing production as they lost money because of the pandemic, many refineries may ramp back up hard to catch improved margins and increased demand.

While it’s still more than two months before summer driving season starts, there’s money to be made. A measure of profit margins on making gasoline, diesel and other refined products relative to crude oil, known as the 3-2-1 crack spread, surged above $22 a barrel Friday.

Total SE’s Port Arthur refinery on the Texas Gulf Coast, for one, has nearly completed its restart and may run at full rates by early next week because of market improvements, people familiar with operations said.

About 2.24 million barrels of capacity are back online already, and about another 2.9 million barrels are in the process of restarting.

As of Friday, the last two refineries that had not restarted any units yet, Shell Deer Park and Chevron Pasadena, were expecting to begin the process over the next several days.

8 Back to normal:

  • Marathon El Paso: 131k b/d
  • Valero Port Arthur: 335k b/d
  • Valero Corpus Christi: 290k b/d
  • Exxon Beaumont: 369k b/d
  • Valero Houston: 205k b/d
  • Valero Texas City: 225k b/d
  • Motiva Port Arthur: 607k b/d
  • Delek Big Spring: 73k b/d

8 Restarting

  • Citgo Corpus Christi: 167.5k b/d. Everything restarted except the coker
  • Exxon Baytown: 560.5k b/d. Restarted hydrocracker, Pipestill 7 crude section
  • LyondellBasell Houston: 263.8k b/d. Everything up but one CDU and one coker
  • Flint Hills Corpus: 338.5k b/d. Restarted 265k b/d West Plant, 73.5k b/d East Plant start continues
  • Total Port Arthur: 225.5k b/d. Still restarting FCC, small CDU, may be back up early next week
  • Marathon Galveston Bay: 585k b/d. Multiple units restarted, including largest crude section
  • Valero Three Rivers: 89k b/d. Catalytic reformer, hydrocracker, FCC restarted
  • Valero McKee: 195k b/d. FCC restarted Feb. 21, hydrocracker still down

2 Preparing to Initiate Restart:

  • Shell Deer Park: 318k b/d. Making equipment repairs, set to begin restart next several days
  • Chevron Pasadena: 112.2k b/d. Has initiated restart

Read:

  • Chevron Says Pasadena Refinery Has Begun Restarting After Storm
  • Shell Deer Park Prepares Units to Restart Over Next Several Days
  • LyondellBasell Houston May Restore Operations By The Weekend
  • Total Port Arthur May Run at Full Rates by Early Next Week
  • Total Cancels Mexican Oil Import as Port Arthur Ramps Up
  • Money Is There When U.S. Oil Refiners Are Ready to Make It Again

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