Refinery Explosion : LUSENET : TimeBomb 2000 (Y2000) : One Thread


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Monday August 9 3:36 PM ET

Oil Hits 22-Month High On Refinery Blast LONDON (Reuters) - World oil prices stormed to 22-month highs on Monday after a blast at a U.S. refinery gave fresh impetus to a market already strong on the back of tight producer compliance with output curbs.

Benchmark Brent crude for September delivery last traded at $20.51 per barrel, up 45 cents and the highest level seen since October 9, 1997.

News of the explosion at Citgo Petroleum Corp's U.S. Corpus Christi in Texas -- in which one worker was killed and another injured -- was enough to send prices soaring once more. However, refinery officials said production had not been affected at the 165,000 barrels per day plant.

``It ran up on the Corpus Christi problem...(and) it doesn't look like giving up any of its gains,'' said one futures dealer in London.

The North Sea grade breached the psychological $20 mark Friday on fresh evidence of OPEC output restraint and a recovery in refinery profit margins that should shore up crude demand.

The rise above $20 was also driven by Russian product export curbs, a rally in U.S. gasoline markets and reports of a fall in U.S. oil inventories.

While traders believed the Organization of the Petroleum Exporting Countries would keep its cuts until the end of the year its rate of compliance was not likely to improve, he said.

The U.S. government's Energy Information Administration (EIA) said Friday OPEC compliance would be relatively strong throughout the summer before declining much more gradually than it had expected.

The price has now doubled from historic sub-$10 touched at the turn of the year, rising to the top of the $18-$20 range that OPEC sees as the informal target of its price rescue pact.

There is no sign as yet of a slackening in OPEC's adherence and some analysts say the cuts look likely to wipe out surplus global oil inventories by the end of the third quarter.

OPEC members stayed in strong compliance with output curbs in July although non-participant Iraq pushed up the group's overall production, a Reuters survey found.

OPEC raised output in July by 270,000 barrels a day (bpd) to 26.24 million bpd from a revised 25.97 million in June, according to the survey of officials, analysts and consultants.

But the July estimates show compliance with limits among the 10 participating OPEC members at 87 percent, unchanged from June.

The EIA said it was raising its forecasts for world oil prices for the remainder of 1999 and for 2000 due to OPEC's better-than-expected compliance with self-imposed supply limits.

World oil prices would average about $18.39 per barrel in the third quarter of 1999, rising to $18.67 in the final period of the year, the EIA said, compared to previous forecasts of $15.60 per barrel and $15.75, respectively.

Earlier Stories

Oil Hits $20 On OPEC Cuts (August 6) Oil Prices Climb Again, Brent Eyes $20 (August 5)

-- Mike Lang (, August 09, 1999


DANG!! I'm ALREADY paying $1.79 a gallon. Guess I'd better get a horse. I notice the price went up EVEN THOUGH production was not affected by the explosion. Any excuse will do.

-- Linda (, August 09, 1999.

Is it me, or are refineries blowing up every month or two?

-- Spanky (, August 09, 1999.

The price of gasoline has gone up to get us use to the fact that we will be paying double what we are paying now. This price increase is just an appetizer.

-- bardou (, August 09, 1999.

This DOES it. They're BLOWING ! Just toooooooooo many to be "coincidence." Y2K has started earlier than the September 1 official horse-out-of-the-gates date. Pony up for gas hikes and lines. The recession will be under way shortly. Then the depression. Then ...

-- that does it (convinced@explosions.increase), August 09, 1999.

If interested, check out the compendium of explosion/accidents recently compiled throughout the '90s...

(I'm hotlink-challenged).

-- Dave (, August 09, 1999.

For the record, here's another explosion, this time of an oil recycling plant, that happened at noon today: oil plant explosion in Calgary.

(for educational purposes only)

"Updated: August 09, 1:00 pm Oil Plant/Explosion An oil recycling facility in Calgary is engulfed in flames after an explosion. A thick black smoke cloud can be seen straight across the city blowing up from the Hub Oil plant. Debris from the explosion has sent three people to hospital but there's no word on their conditions. An evacuation is going on around the plant for fear of secondary explosions. Thus far, most of the workers have been accounted for."

oil plant evacuation

"Updated: August 09, 2:50 pm Oil Plant/Evacuation

An explosion at an oil recycling facility has forced the evacuation of a commercial section of Calgary in the eastern end of the city. Five men have been hurt and three employees of Hub Oil are being treated for burns. Two workers are still missing. Eye witness Bob Poole was driving when he saw the explosion. He says he saw a massive red ball etched in black. The sky over the plant is filled with black smoke. Hub Oil has been at the centre of controversy in Calgary because it is located within city limits in the middle of a commercial area. Residential neighbourhoods are located a few blocks away and a 15-block area north of plant has been evacuated."

-- Rachel Gibson (, August 09, 1999.

This fire is huge! Five hours later, it is still burning fiercely. Electricity out, toxic fumes, large chunks of metal being thrown for blocks. Multiple explosions of propane and of other materials. Large residential neighbourhood surrounding it is being evacuated. Helicopters flying over it, but the fire seems impossible to fight. Firefighters want it to continue burning hotly to hopefully eliminate some of the toxic effects.

-- Rachel Gibson (, August 09, 1999.

Does anyone know if similar explosions are occuring in other parts of the world?

-- Rex Hutton (, August 09, 1999.

Dave, thanks for the link. When I left this forum several months ago we were wondering about the sudden reports on explosions and wether they were just a "red truck" phenomenon (everyone seems to own a red truck when you buy a new one.) Glad to see someone's researching this matter and keeping tab.

Interesting to note that from this website list, the impetus seemed to have started in 1996, about the time we keep hearing that major companies started Y2K remedial. I'm aware that it could also simply be due to the fact that older news are harder to find; either time expired or removed.

-- Chris (%$^&^, August 09, 1999.

Related to fire variable -

At work today the superintendant told me, that upon a visit from the fire dept to the job site, to rescue an injured fellow, he was told the following by the Fire Marshal: *If this place were to catch fire, we would just evacuate the surrounding area and let 'er burn!! Of course we'll watch way the cloud drifts!!!!

This small, out of the way chemical plant, is so dangerous because of all the barrels of toxic materials. Most stored in poly 55 gal barrels. If you have ever seen a plastic fire, you could appreciate the firemans remarks. Never mind the CLOUD!!

I related a couple of recent stories regarding Y2K, and he seemed to GI. Hopefully one more that will use the time left to prepare, and avoid the panic.

I feel very sorry for the firemen/women facing the effects of rollover.

-- Michael (, August 09, 1999.

Chris!!! Welcome back dagnabbit!!!

ok...I'm surrounded by refineries and close to the port of Los Angeles and so far, so good. Just a little fire, quickly put out. I'm keeping my fingers crossed.

Mike ================================================================

-- Michael Taylor (, August 09, 1999.

Calgary oil fire

This fire falls in the 24 month time table of the staggered start-up calibrations of the embeded systems.That I tried to elaborate on in another thread on this forum about a week to ten days ago. Things might well begin to really heat up now (no pun intended).


-- Shakey (in_a_bunker@forty.feet), August 09, 1999.

To my knowledge the price of a gallon of gas in France, Isreal, and U.K. are all around $5.00 a gallon. And probably many other places too. Coming soon to a town near you. Another hand in our pockets. So much for quality of life in this blessed country.

-- Gia (, August 09, 1999.

Michael double dagnabit back at you! I already acknowledged your welcome back post to me last week on another thread, pay attention ol' buddy! ;-)

Only your fingers are crossed? Gees, you're more optimistic and risk taker than I remembered. After reviewing this list, I'd have every crossable parts of my body twisted in knots, including my stomach, if I lived in an area such as yours.

-- Chris (%$^&^, August 09, 1999.

Chris : )

Sorry, I missed the earlier response. I have a brain lapse from time to time!

Oh, and everything is crossed! I just self-censored : )



-- Michael Taylor (, August 10, 1999.

Please read my post above in contrast to Gia's post! $5.00/gallon! I am not too far off am I? Should I do a stock market analysis?

-- bardou (, August 10, 1999.

Go for it, Bardou :-) (Nice to see you peeking in now and then.)

-- Tricia the Canuck (, August 10, 1999.

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