ExxonMobil Joliet refinery may be limited for 3 weeks

Spanish Market: Crude oil, Oil products
19/07/24

It could take up to three weeks for ExxonMobil's 252,000 b/d Joliet refinery in Channahon, Illinois, to resume normal operations after severe weather caused a facility-wide shutdown Monday.

The company has limited its unbranded fuel supply in the region and placed customers on allocation, according to buyers. Restoring power and ramping-up the refinery to full operations could take up to three weeks, lasting well into August.

ExxonMobil confirmed this afternoon that power has not been restored to the plant and previously declined to comment on a time line for a return to normal operations as it assesses damage at the plant.

Channahon's emergency management director told Argus that Monday's tornado skirted the refinery and it faced no direct damage. US Interstate 55 which borders Exxon's refinery was closed due to downed power lines, but these have since been cleared and the road re-opened.

By Nathan Risser

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28/04/25

Power outage hits Spanish refineries: Update

Adds new details throughout London, 28 April (Argus) — A massive power cut across the Iberian peninsula has disrupted operations at several refineries and chemical plants in Spain today. All five of Repsol's refineries have been forced to shut, a union representative for the company's workers said. This includes the 220,000 Bilbao refinery which is operated by Repsol's Petronor subsidiary. Crews are in place, securing units at the refineries. "There is sufficient autonomy in all of them to guarantee the safety of the facilities," the union representative said. Repsol has yet to respond to a request for comment. Fellow Spanish refiner Moeve said it has also halted activity at its refining and chemical plants in the country and is using back-up power generators "to guarantee the safety and control of the system". Moeve operates the 244,000 b/d Algeciras and 220,000 b/d Huelva refineries. Its 250,000 t/yr San Roque base oils plant is also shutting down. Chemicals firm Dow said all plants at its Tarragona industrial complex in Spain have been closed. The longer the power outage lasts, the longer it will take to restart integrated sites. Refineries affected by power outages normally require a 2-3 day restart period. It is unclear yet if any plants have sustained damage. Spanish transmission system operator (TSO) Red Electrica and relevant government bodies are investigating the cause of the blackout. Red Electrica said power has been restored "at substations in several areas in the north, south and west of the peninsula, and consumers in these areas are beginning to be supplied". By George Maher-Bonnett, Isabella Reimi, Alex Sands and Monicca Egoy Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Power outage hits Spanish refineries

28/04/25

Power outage hits Spanish refineries

London, 28 April (Argus) — A massive power cut across the Iberian peninsula has disrupted operations at several refineries in Spain today, sources told Argus. Spanish firm Repsol's Petronor subsidiary halted all units at its 220,000 Bilbao refinery earlier because of the power cut, with black smoke released as part of the security stoppage, market participants said. Shutdowns are also under way at Moeve's 250,000 t/yr San Roque base oils plant and at Repsol's 135,000 b/d La Coruna refinery, sources said. Flaring has been seen at Repsol's 180,000 b/d Tarragona refinery as a result of a response system being activated at the site, according to petrochemical sources. Moeve and Repsol have yet to respond to a request for comment. "The refineries need to be brought to a safe state," a trade union representative for Repsol workers said. "The crews are in place, securing the units. There is sufficient autonomy in all of them to guarantee the safety of the facilities." Chemical sites will also be affected by the power outage. The longer the power outage lasts, the longer it will take to restart integrated sites. Refineries affected by power outages normally require a 2-3 day restart period. It is unclear yet if any plants have sustained damage. By George Maher-Bonnett, Isabella Reimi and Alex Sands Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oil services spell out initial cost of Trump’s tariffs

28/04/25

Oil services spell out initial cost of Trump’s tariffs

New York, 28 April (Argus) — The world's top oil field service firms are starting to count the cost of US president Donald Trump's unprecedented trade wars, amid a challenging outlook caused by tariff-related volatility that has sent oil prices lower and sparked fears of a recession. Halliburton forecasts a 2-3¢/share hit to second-quarter results, with its completion and production unit — which includes the hydraulic fracturing (fracking) business — accounting for 60pc of the expected fallout, and drilling and evaluation making up the rest. Baker Hughes says full-year profit could be reduced by $100mn-200mn, assuming that the tariff levels in effect under Trump's 90-day pause remain in place for the rest of the year. While SLB, the world's biggest oil field contractor, says it is to early to fully assess the potential impact of tariffs, the company is taking proactive steps to shore up its supply chain and manufacturing network, as well as pursuing exemptions and engaging with customers to recover related cost increases. Crude prices slumped to a four-year low earlier this month after Trump's tariffs threw global markets into a tailspin. The oil field service industry argues that it is better prepared for a downturn this time around, given a focus on capital discipline and returns in recent years. Yet the double blow of tariffs and an accelerated return of Opec+ barrels to the market could cause further headaches — even as firms move to mitigate the impact. "We need a bit more clarity and stability in the structure of tariffs so that we can really understand what levers we can pull and then what the overall outcome is going to be," Halliburton's chief financial officer, Eric Carre, says. "There's just a lot of moving parts right now." Global upstream spending will be "down by high-single digits" this year, Baker Hughes says. The company forecasts a low-double digit decline in North America spending by its clients, and a mid-to-high single-digit drop internationally. "A sustained move lower in oil prices or worsening tariffs would introduce further downside risk to this outlook," chief executive Lorenzo Simonelli argues. "The prospects of an oversupplied oil market, rising tariffs, uncertainty in Mexico and activity weakness in Saudi Arabia are collectively constraining international upstream spending levels." While Baker Hughes' "strong weighting" to international markets and a diversified and local supply chain provide a cushion, the company is seeking to limit the tariff impact for its industrial and energy technology division by exploring domestic procurement alternatives and improving its global manufacturing footprint. The Wright stuff Liberty Energy , whose former chief executive Chris Wright was picked by Trump to serve as his energy secretary, expects modest tariff-related inflationary impacts on engines and other electric components, some of which are being offset by lower prices or volume discounts. "All said, we don't anticipate a significant direct impact from tariffs at the moment," chief financial officer Michael Stock says. Shale producers are also starting to figure out how they may be affected, with Diamondback Energy reviewing its operating plan for the rest of the year. "Should low commodity prices persist or worsen, Diamondback has the flexibility to reduce activity to maximise free cash flow generation," the company says. And Devon Energy aims to boost annual pre-tax free cash flow by $1bn, partly by doubling down on efficiency savings — a strategy that has gained momentum from the recent tariff turmoil. "Given the challenging market and shifting competitive landscape, this is the right moment to focus internally and improve our profitability," chief executive Clay Gaspar says. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump works to blunt renewables growth

28/04/25

Trump works to blunt renewables growth

Washington, 28 April (Argus) — US president Donald Trump has started to impede development of renewable energy projects he sees as boondoggles, but he is facing challenges to his attempts to halt government funding and tax credits for the sector. Trump has attacked wind turbines and solar projects as part of a "Green New Scam" that should not be built, based on his preference for the fossil fuel-fired and nuclear power plants he says are more reliable and affordable. Trump selected a cabinet of like-minded individuals who oppose renewables and see little urgency to address climate change. He was elected to end the "nonsense" of building renewable resources that are heavily subsidised, make the grid less reliable and raise costs, energy secretary Chris Wright said in an interview on Earth Day. Interior secretary Doug Burgum on 16 April ordered Norwegian state-controlled Equinor to "immediately halt" construction of the 810MW Empire Wind project off New York. Trump had already ordered a freeze on future offshore wind leases , and suspending Empire Wind's permits is likely to spook investors even outside the renewables sphere. To reverse course on a fully permitted project is "bad policy" that "sends a chilling signal to all energy investment", American Clean Power Association chief executive Jason Grumet says. The US last week separately said it would impose anti-dumping duties on solar components imported from four southeast Asian countries that will range from 15pc to 3,400pc. Those duties — in effect from June to support US solar manufacturers — will be in addition to a 10pc across-the-board tariff the US imposed this month on most imports. Solar industry groups have said that steep import duties will make new installations unaffordable, stunting the industry's ability to grow. Trump has had less success in his push to axe support for renewables approved under Joe Biden. On 15 April, a federal judge ordered the administration to unfreeze billions of dollars for clean energy projects provided by the Inflation Reduction Act (IRA) and 2021 infrastructure law. The administration lacks "unfettered power to hamstring in perpetuity two statutes", judge Mary McElroy wrote. In a separate ruling on 15 April, judge Tanya Chutkan prohibited the administration from suspending $14bn in grants distributed to nonprofits under the IRA for a greenhouse gas reduction programme. The administration is appealing both rulings. Targeting the windfall Trump could further undermine the growth of renewables by convincing Republicans in Congress to use an upcoming filibuster-proof budget package to repeal or narrow the IRA's tax credits for wind, solar and other clean energy projects. Critics of that law see the potential for $1 trillion in savings by repealing its tax credits, which could offset the costs of more than $5 trillion in planned tax cuts. But there appear to be enough votes in each chamber of Congress to spare at least some of the IRA's energy tax credits. In the Senate, where Republicans can only afford to lose three votes, Alaska's Lisa Murkowski and three other Republicans signed a joint letter this month saying "wholesale repeal" of the tax credits would fuel uncertainty and undermine job creation. In the House of Representatives, where Republicans have a similarly slim majority, 21 Republicans voiced concerns earlier this year about repealing all of the tax credits. Renewables are on track to overtake natural gas as the largest source of US electricity by 2030 — assuming the tax credits and climate rules enacted under Biden remain intact — the EIA stated this month in its Annual Energy Outlook . The amount of power from renewables under the EIA's existing policy baseline by 2035 will increase by 135pc to 2.8bn MWh, while gas-fired power will decline by 14pc to 1.6bn MWh over the same time period. By Chris Knight Baseline US net power generation Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US tariffs create uncertain jet fuel outlook

25/04/25

US tariffs create uncertain jet fuel outlook

Houston, 25 April (Argus) — US airlines are signaling an uncertain outlook for jet fuel demand, with most withdrawing 2025 financial guidance because President Donald Trump's evolving tariff plans have made it difficult to predict travel demand. Delta Air Lines , American Airlines , Southwest Airlines and Alaska Airlines all withdrew financial guidance for the full year when reporting first-quarter earnings this month. Global economic uncertainty prompted United Airlines to provide two outlooks , one based on a weaker but stable economy and a second scenario in which the US falls into a recession. The uncertain demand outlook comes even as jet fuel costs are 11-15pc cheaper than a year earlier, with prices projected to fall to a 4-year low in 2025 . Much of the uncertainty stems from Trump's high and repeatedly changing tariff levels. He has imposed an across-the-board 10pc on imports from most trading partners, 25pc on some imports from Canada and Mexico and 145pc on most imports from China — and separately, a 25pc tariff on imported steel, aluminium, cars and auto parts. Beijing has responded with a 125pc tariff on imports from the US. The growing trade war has prompted the IMF to significantly lower its outlook for global economic growth in 2025-26. With no clear path on how to navigate the changing political and economic landscape, businesses and consumers have grown more cautious. Domestic and international air travel began to falter last month as Trump rolled out his trade policies. US airline passenger volumes declined by 15pc to 16.48mn passengers in the week ended 8 March, down from an eight-month high in the week prior. Brewing anti-American sentiment and concern about US immigration policy also may be lowering global demand for air travel to the US. The number of European travelers to the US totalled 1.03mn in March, lower by 15pc from the same month last year. This was the first time that European arrivals in the US fell on the year since March 2021, during the Covid-19 pandemic. By Craig Ross Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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