Houston 23Jun2010/516 am EDT/916 GMT
BP has begun refining the crude oil recovered from the Macondo oil leak
in the Gulf of Mexico in its own refining system, US Gulf Coast crude oil
traders and brokers surveyed by Platts indicated Tuesday.
One trader said his contact at BP had told him that Macondo crude "is
being processed with their [BP] system.... I am not sure if this means whether
BP is refining the Macondo crude at their Texas City refinery or their
refinery at Whiting, Indiana, or Toledo, Ohio."
A BP spokesman said Tuesday that the plan was still to sell the crude on
the spot market. The recovered barrels "are going to refineries, but not
necessarily BP refineries," he said in a phone interview. Some traders have
said the crude will have a tough time finding homes since it has methanol in
it from the recovery process. If sold, it is expected to be priced at a deep
discount to other benchmark US crudes.
BP has a total refining capacity of 1.5 million b/d and operates a
475,000 b/d refinery in Texas City, Texas; a 405,000 b/d refinery in Whiting,
Indiana; a 125,600 b/d refinery in Toledo, Ohio; a 275,000 b/d refinery in
Carson, California; and a 225,000 b/d refinery in Ferndale, Washington.
Two other traders said since they have not seen the Macondo crude being
offered in the spot market, they believed that the only thing that BP could do
is to refine the crude itself.
Brokers surveyed said they have neither heard nor seen Macondo crude
being offered in the marketplace.
BP has begun refining the crude oil recovered from the Macondo oil leak
in the Gulf of Mexico in its own refining system, US Gulf Coast crude oil
traders and brokers surveyed by Platts indicated Tuesday.
One trader said his contact at BP had told him that Macondo crude "is
being processed with their [BP] system.... I am not sure if this means whether
BP is refining the Macondo crude at their Texas City refinery or their
refinery at Whiting, Indiana, or Toledo, Ohio."
A BP spokesman said Tuesday that the plan was still to sell the crude on
the spot market. The recovered barrels "are going to refineries, but not
necessarily BP refineries," he said in a phone interview. Some traders have
said the crude will have a tough time finding homes since it has methanol in
it from the recovery process. If sold, it is expected to be priced at a deep
discount to other benchmark US crudes.
BP has a total refining capacity of 1.5 million b/d and operates a
475,000 b/d refinery in Texas City, Texas; a 405,000 b/d refinery in Whiting,
Indiana; a 125,600 b/d refinery in Toledo, Ohio; a 275,000 b/d refinery in
Carson, California; and a 225,000 b/d refinery in Ferndale, Washington.
Two other traders said since they have not seen the Macondo crude being
offered in the spot market, they believed that the only thing that BP could do
is to refine the crude itself.
Brokers surveyed said they have neither heard nor seen Macondo crude
being offered in the marketplace.
