BP increases oil price assumptions by USD5/b and promises output recovery following 25%-slump in Q2 2021

BP increases oil price assumptions by USD5/b and promises output recovery following 25%-slump in Q2 2021

MOSCOW (MRC) -- BP raised Aug. 3 its 2025 oil price assumption by USD5/b to USD60/b to reflect an expected supply constraint, while promising a recovery in its own production volumes following a maintenance-related slump in the second quarter, reported S&P Global.

In its Q2 results statement, the UK oil company spoke of an "improving outlook" in the industry environment and said its own performance was "resilient," even as production in its upstream oil production and operations unit fell nearly 25% on the year at 1.25 million b/d of oil equivalent. Its upstream production slump was offset by more stable production in the company's LNG-focused gas and low-carbon energy unit and at Rosneft, in which BP holds a near 20% stake.

BP said its third-quarter production should be higher due to the completion of maintenance, which has held back many of the major producers in recent months, as well as the ramp-up of key new projects.

Production is expected to get a boost from the startup of four main projects in Q2, in India, Egypt, Angola and the US Gulf of Mexico, the company added.

BP said the oil market was rebalancing and global stocks should revert to historical levels in the first half of 2022. It consequently set out new Brent oil price assumptions, raising its 2025 forecast to USD60/b, maintaining its 2030 forecast at USD60/b, but lowering its 2040 forecast to USD55/b from USD60/b to reflect an acceleration in the transition to low-carbon energy. BP also lowered its 2050 price assumption to USD45/b from USD50/b.

In downstream, where the company struggled to capitalize on broadly improved margins in Q2, "realized refining margins are expected to improve slightly supported by stronger demand and wider North American heavy crude oil differentials," BP said.

As MRC reported before, BP and Lukoil want to quit their Iraqi energy projects due to the current investment environment, the country's oil minister said earlier this month, as OPEC's second biggest producer faces an exodus of international oil companies that want to exit unattractive contracts. Lukoil wants to sell its stake in West Qurna 2 to Chinese companies.

We remind that Russian energy major Lukoil (Moscow) is studying several potential petrochemical projects in Russia and Bulgaria, with investment decisions expected to be made on two of them in 2021.

Thus, Lukoil announced an investment decision in June, 2019, to proceed with a 500,000-metric tons/year polypropylene (PP) plant at its Kstovo refinery. In September this year it selected Lummus Technology’s Novolen PP technology and basic design engineering for the facility’s production unit. Kstovo is one of Lukoil’s largest crude refineries in Russia with a throughput of 17 million metric tons/year, with the company recently adding a catalytic cracking unit that almost doubled the refinery’s production of propylene feedstock to 300,000 metric tons/year.

At Budennovsk in Russia’s far south west, the company’s Stavrolen petchems complex currently has the capacity to produce 350,000 metric tons/year of ethylene, 300,000 metric tons of polyethylene (PE), 120,000 metric tons/year of PP, and 80,000 metric tons of benzene. Lukoil has for several years been considering construction of a new gas chemicals plant at Stavrolen to crack more ethane extracted from associated petroleum gas produced by its oil and gas fields in the north of the Caspian Sea. The potential new plant would raise Stavrolen’s ethylene and PE output to around 600,000 metric tons/year each, and increase PP production to 200,000 metric tons/year.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

BP is one of the world's largest oil and gas companies, serving millions of customers every day in around 80 countries, and employing around 85,000 people. BP’s business segments are Upstream (oil and gas exploration & production), and Downstream (refining & marketing). Through these activities, BP provides fuel for transportation; energy for heat and light; services for motorists; and petrochemicals products for plastics, textiles and food packaging. It has strong positions in many of the world's hydrocarbon basins and strong market positions in key economies.
MRC

Phillips 66 posts first profit in a year on rebound of fuel demand due to easing of pandemic-related travel curbs

Phillips 66 posts first profit in a year on rebound of fuel demand due to easing of pandemic-related travel curbs

MOSCOW (MRC) -- US refiner Phillips 66 posted an adjusted quarterly profit, its first in a year, benefiting from a rebound in fuel demand due to the easing of pandemic-related travel curbs, reported Reuters.

Adjusted earnings came in at USD329 million, or 74 cents per share, for the three months ended June 30, compared with a loss of USD509 million, or USD1.16 per share, in the first quarter.

As MRC informed previously, Worley has been recently awarded a front-end engineering services contract by Phillips 66 to convert its San Francisco refinery in Rodeo, California, USA into a renewable fuels-manufacturing facility. Under the contract, Worley will provide front-end engineering design services for the facility, which will be executed by Worley’s North America West team with support from Worley’s Global Integrated Delivery team.

Besides, in October 2020, Phillips 66 said it plans to reconfigure its refinery in Rodeo, California to produce renewable fuels from used cooking oil, fats, greases and soybean oils.

We remind that US-based Phillips 66 remains open to developing another ethane cracker for its Chevron Phillips Chemical (CP Chem) joint venture, the refiner's CEO said in March 2018.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 356,370 tonnes in the first two month of 2021, down by 9% year on year. Shipments of exclusively low density polyethylene (LDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market was 246,870 tonnes in January-February 2021, up by 30% year on year. Supply of homopolymer PP and PP block copolymers increased.

Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,300 employees committed to safety and operating excellence. Phillips 66 had USD55 billion of assets as of Dec. 31, 2020.
MRC

Convtactor sued LyondellBasell over safety at La Porte facility

Convtactor sued LyondellBasell over safety at La Porte facility

MOSCOW (MRC) -- A contractor sued LyondellBasell Industries in May, alleging lax safety measures led to a workplace accident at the same plant that leaked chemicals, killing two contractors and injuring 30 workers, reported Reuters.

The accident was one of the worst US chemical plant disasters since a 2019 Texas blast forced the evacuation of some 60,000 people the day before the US Thanksgiving holiday.

The suit, filed in a Texas District Court in Houston against LyondellBasell Acetyls, said the company failed to provide a safe work environment at its facility in La Porte, leading to a pair of accidents last year.

In December 2020, plaintiff Adam Good was injured while working in a below-ground excavation trench box after a valve broke and forcefully pushed water and other liquids into the area. Good's lanyard became entangled, preventing him from exiting, the lawsuit said. As a result, he nearly drowned and was injured.

The suit alleges Lyondell had knowledge that the method used to secure the valve was ineffective but did not intervene. It also said a similar incident had recently occurred at that unit.

Lyondell's acetyls unit in La Porte leaked some 100,000 pounds of a mixture including acetic acid, leading to the two worker deaths and multiple injuries. The leak did not prompt an evacuation of the surrounding area.

Good and his lawyer did not immediately respond to a request for comment.

A separate lawsuit against Lyondell was filed on Thursday by Bryant Hinojosa, a worker injured earlier this week. That suit, which seeks monetary damages exceeding USD1 million, alleges that negligence on the part of Lyondell led to the accident. The suit claims Lyondell discovered the leak on Tuesday and called out a company that specializes in sealing and correcting industrial leaks. Lyondell was told the leak needed to be sealed and repaired, but opted to call other contractors up to temporarily fix the leak, putting off permanent repairs until later, the suit said.

LyondellBasell said it is aware of the lawsuits but does not comment on pending litigation.

As MRC informed earlier, LyondellBassel's La Porte, Texas, cracker was heard to be offline again after a short-lived restart, reported S&P Global with reference to sources familiar with operations' statement on July 23. The cracker had been confirmed as back online July 20, but, according to one market source, it was shut again not long after.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High density polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

LyondellBasell is one of the largest plastics, chemicals and refining companies in the world. Driven by its 13,000 employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. LyondellBasell sells products into approximately 100 countries and is the world's largest licensor of polyolefin technologies.
MRC

Dupont Clean Technologies raises global catalyst prices

Dupont Clean Technologies raises global catalyst prices

MOSCOW (MRC) -- DuPont Clean Technologies (part of DuPont), a global leader in process technology licensing & engineering, has announced a global price increase of USD0.30/liter for its MECS sulfuric acid catalyst products, according to Hydrocarbonprocessing.

Subject to the terms of applicable contracts, the new pricing will take effect immediately.

As MRC reported previously, DuPont is investing USD400 million in the production capacity of Tyvek nonwoven fabric made from high density polyethylene (HDPE) at its site in Luxembourg. A new building and a third work line at the production site will be constructed. The launch of new facilities is scheduled for 2021.

According to MRC's ScanPlast report, May estimated HDPE consumption in Russia grew to 128,100 tonnes from 69,430 tonnes a month earlier. Domestic producers reduced their exports, whereas some producers' output increased. Overall HDPE shipments to the Russian market totalled 549,590 tonnes in the first five months of 2021, down by 3% year on year. Production increased, whereas imports fell by 35%.

The Clean Technologies division of DuPont is a global leader in process technology licensing & engineering, with an unwavering commitment to customer support. The company provide extensive global expertise across our portfolio of offerings in key applications - MECS sulfuric acid production, STRATCO alkylation, BELCO wet scrubbing and IsoTherming® hydroprocessing. Offering critical process equipment, products, technology and services, The company enables an array of industrial markets, including phosphate fertilizer, non-ferrous metals, oil refining, petrochemicals and chemicals, to minimize their environmental impact and optimize productivity.

DuPont is a global innovation leader with technology-based materials and solutions that help transform industries and everyday life. The company's employees apply diverse science and expertise to help customers advance their best ideas and deliver essential innovations in key markets including electronics, transportation, construction, water, healthcare and worker safety.
MRC

Marathon Petroleum employees participate in unique fire exercise

Marathon Petroleum employees participate in unique fire exercise

MOSCOW (MRC) -- Marathon Petroleum Corp. (MPC) employees from the Catlettsburg refinery participated in a Trench Safety Stand Down exercise and demonstration with local officials from the Ashland Fire Department (AFD), Ashland-Boyd County-Catlettsburg Office of Emergency Management and the Occupational Safety and Health Administration (OSHA) at the AFD?Training Center in Ashland, Kentucky, according to Hydrocarbonprocessing.

The event’s purpose was to help raise public awareness of trench safety and allow members of MPC’s Refinery Emergency Response Team and Ashland Fire Department to train in trench rescue.

The fire department hosted the event, which featured two trenches dug by the city of Ashland to allow the MPC Safety Department to present an exhibit on both safe and hazardous trenching practices.

“Working and training with our local emergency responders only makes us better, and our communities safer,” said Greg Gibson, Safety Supervisor, Catlettsburg refinery. “Especially during times of potential real emergency when we would need to be able to effectively communicate and align with our local agencies to ensure the best possible outcome.”

As MRC reported earlier, a portion of Marathon Petroleum Corp’s 363,000 barrel-per-day Carson refinery in California was shut following a fire in late February, 2020.

We remind that Marathon Petroleum shut down its catalytic cracking unit in Galveston Bay on 18 June, 2021, for a scheduled maintenance. Maintenance at the 250,000 tonnes of propylene per year cat cracking unit continued for 14 days.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 953,400 tonnes in the first five months of 2021, which virtually corresponded to the same figure a year earlier. High denisty polyethylene (HDPE) shipments decreased. At the same time, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.

Marathon Petroleum was founded in 2005 as the oil transportation, refining and marketing division of Marathon Oil. In 2011, the division became completely independent from the parent company.
MRC