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Gulf Coast Refineries Restart

Hurricane Rita smacked a key oil-refining region of Texas with less force than feared. As many as 20 refineries along the Gulf Coast remain closed following the passage of Hurricane Rita, including four that were badly damaged by Hurricane Katrina almost a month ago. They account for 19 percent of total fuel refining capacity nationwide. […]

Hurricane Rita smacked a key oil-refining region of Texas with less force than feared.

As many as 20 refineries along the Gulf Coast remain closed following the passage of Hurricane Rita, including four that were badly damaged by Hurricane Katrina almost a month ago. They account for 19 percent of total fuel refining capacity nationwide. But according to Shell’s David McKinney Deer Park refinery may be online soon.

Valero Energy says it will take two to four weeks to repair and restart its 255,000-barrel-per-day Port Arthur refinery, but the lights are on at its refineries in Houston and Texas City. Marathon Petroleum says its Texas City refinery has power and sustained only minimal damage. BP hasn’t yet determined the length of the recovery and start-up period for its Texas City refinery. Prices could rise if pipelines and oil refineries are slow to resume operations, but Shell’s David McKinney says you can’t re-start by simply flipping a switch.

Cambridge Energy Research Associates analyst William Veno says there will be a “modest disruption of supplies of gasoline and other products,” but it won’t be as bad as after Hurricane Katrina. Ed Mayberry, Houston Public Radio News.

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