-Over-pressurization in an electrostatic precipitator caused the explosion at ExxonMobil’s Torrance, Calif., refinery last Wednesday, according to air quality authorities. The South Coast Air Quality Management District said the FCCU associated with the unit was not in operation and “was not being vented to the ESP at the time of the incident.” The blast injured four contractors and caused ash to blow into nearby neighborhoods. The ash was later determined to be spent catalyst.
-Petrobras will complete repairs on a broken cat cracker at its REDUC refinery outside Rio de Janeiro by March 7, Reuters reports. The company shut the unit down Feb. 9 after internal problems led to lower production and a leak of catalysts. Petrobras was forced to cut oil processing by over 44,000 barrels per day for more than 10 days.
-Also from Reuters, shale oil producers are cutting back production and capital spending at a pace faster than expected amid the oil price plunge. Magnum Hunter Resources CEO Gary Evans predicts U.S. oil production will begin to fall in the next two months. Unlike previous downturns, producers are less fearful of halting production because shale oil is “locked in rock” and cannot be taken by competitors with wells in the same reservoirs. Additionally, recently retired Swift Energy CEO Bruce Vincent notes that shale producers are paying fees to break rig contracts instead of continuing to drill — a key factor in the recent rig count decline.
-Canadian Prime Minister Stephen Harper last week announced new tax incentives designed to stimulate Canada’s LNG business. Via the Wall Street Journal, Harper said LNG developers would be allowed to write off industrial equipment and real estate acquired up until 2025. Canada’s LNG sector has been slower to take off than that of the U.S. due to higher construction costs and regulatory uncertainty.
-Meanwhile, Canadian authorities said the Feb. 14 derailment of a crude oil train in Ontario shows new tank car safety requirements are inadequate. Via the Associated Press, the Transportation Safety Board said the derailed cars — which met the updated standards — performed similarly to those involved in the 2013 Lac-Megantic, Quebec, disaster that killed 47 people.
