The Environmental Protection Agency (EPA) has temporarily banned BP from new contracts with the US government. The decision is linked to BP's handling of the 2010 oil spill in Gulf of Mexico caused by problems on the Deepwater Horizon drilling rig, (this mainly affected the coastline of Louisiana, Mississippi and Alabama - the NY Times has an interactive map). BP has kindly agreed to pay $4.5bn in fines.
Wednesday, 28 November 2012
Wednesday, 14 November 2012
Citigroup Beefs up Commodities Trading
Citigroup is importing new commodities executives from BNP Paribas and Barclays - Jose Cogulludo becomes global head of Corporate Sales. This comes at a time when some banks are purportedly considering selling commodities operations as limits on proprietary trading have squeezed profitability.
Monday, 12 November 2012
Essar Oil Increases Processing of Ultra Heavy Crudes by Factor of Four
Who is Essar Oil?
Essar Oil is India's second largest private refiner. It is also known as "EOL" (Essar Oil Limited).
It has quadrupled processing (Q3,2012 vs. Q3,2011) of ultra heavy crudes (which are cheaper and offer higher margins than "regular" crude or "light" crude) at its Vadinar plant in Jamnagar district, Gujarat, which started commercial production in May 2008 (Here we take Q3 to equal July-September period, which is sometimes called Q2 in reports). Vadinar boasts Asia's largest crude column at 97m tall - this means enhanced separation of petroleum products.
How much did Essar Oil make per barrel of oil turned into petroleum product in the quarter?
Answer: USD 7.86 per barrel vs. GRM of USD 5.07 per barrel in the same period a year ago. GRM is the difference in dollars between the petroleum product output and the input (cost of crude oil plus any purchased additives like butane). Basic refinery economics, bro.
The company believes there will be "healthy" refining margins for Asian refiners due to "continuous, strong diesel demand in India, China and the Middle East".
Essar Oil is India's second largest private refiner. It is also known as "EOL" (Essar Oil Limited).
It has quadrupled processing (Q3,2012 vs. Q3,2011) of ultra heavy crudes (which are cheaper and offer higher margins than "regular" crude or "light" crude) at its Vadinar plant in Jamnagar district, Gujarat, which started commercial production in May 2008 (Here we take Q3 to equal July-September period, which is sometimes called Q2 in reports). Vadinar boasts Asia's largest crude column at 97m tall - this means enhanced separation of petroleum products.
How much did Essar Oil make per barrel of oil turned into petroleum product in the quarter?
Answer: USD 7.86 per barrel vs. GRM of USD 5.07 per barrel in the same period a year ago. GRM is the difference in dollars between the petroleum product output and the input (cost of crude oil plus any purchased additives like butane). Basic refinery economics, bro.
The company believes there will be "healthy" refining margins for Asian refiners due to "continuous, strong diesel demand in India, China and the Middle East".
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