Motiva and most refinerys shave contractors

[Joshua Lege]

Charlie it seems that most refinerys are cutting contractors.
 
I just came back from Port Arthur where it seems they are slowing down there expainsion at Motiva. They say to control costs, but realisticly they can take their time now seeing the demand has dropped.
They actually say they will keep going, unlike Valero or Exxon Mobil in Port Arthur and Beaumont, who have put off or  canceled there expainsions.
Total is pushing forward, and they are idleing a few chemical plants in orange and Port Arthur due to steep drops in ethlene markets and PPs.

[james maxey]

What about turnarounds. Are they going to be pushed back also?

[Charles Randall]

RE: Manchesterrutd81 question:
 
Your observations around Port Arthur project activity pretty much track what I posted on these projects in coker/refinery news sections – so its good to have the confirmation.  And it is only smart of  the refiners to adjust their schedules to a more cost effective approach that meets their timelines instead of one that was driven basically by when they could get enough workers & concentrating the activity because of past shortage of materials, manpower & equipment due to large number of competing projects.  I tend to think this is good development that benifits the plant & area workers instead of outsourced imported workers……also tends add better level safety & quality to work.
 
RE: Jamesnotch101 question:
 
Turnarounds tend go the opposite way in the kind of environment we currently have….. When refinery economics are poor and demand is low, most refineries take shutdowns earlier & for longer periods of time to escape the rapid drop in prices (aka like trying catch falling knife), negative margins, and keep from building inventory during low demand periods. If you dont take S/D eventually the inventory build will just make you take a downtime during the ramp up stage when spring demand starts back up and is worse option.
 
Hope these help.

[Author]

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