There is currently something in excess of $200 billion in refineries, petrochemical, and LNG facilities (the stuff that CBI builds) currently underwater in Texas and Louisiana. There is no experience with this kind of water damage to this equipment so it is too early to guess at the extent of the damage, but is it not just possible, that if the water damage becomes extensive that CBI's particular skills may turn out to be of considerable value in this crisis?
Could you provide a link to the plants being underwater? I have not seen anything in the news.Thanks,Tex
Heavy rains and flooding from Tropical Storm Harvey threatened more oil refineries along the Louisiana coast after hammering plants in Texas, forcing Exxon Mobil Corp (XOM.N) and Citgo Petroleum [PDVSAC.UL] to consider shutdowns....The Gulf Coast is home to nearly half the U.S. refining capacity, and nearly 2.7 million barrels per day, or nearly 15 percent of U.S. refining capacity, is already shut off. Restarting those plants even under the best conditions can take a week or more.https://www.reuters.com/article/us-storm-harvey-energy-idUSK...Exxon (XOM) said a roof at the facility in Baytown "partially sank" because of heavy rain.A report filed with Texas environmental regulators said Exxon expects air emissions linked to the damage will end by Friday at the facility. Exxon shut down the refining and chemical complex and said it was taking action to "minimize emissions."...Other refineries on the Gulf Coast have reported no major damage so far.http://money.cnn.com/2017/08/28/news/companies/exxon-refiner...
I was listening to NPR and they mentioned that very few companies know how to repair the types of problems that Harvey may cause to the Oil Refineries. Perhaps CBI is one of them that knows how? John
I was listening to NPR...Links are always helpful.The refineries aren't seriously damaged, however — at least so far.But the continued rain could end up flooding some of them, and if that happens there aren't enough companies with the kind of specialized knowledge to repair them."Then you're talking about gasoline shortages and longer term price hikes, and that's going to have a ripple effect through the whole economy," (Chuck Watson, who studies the economic impact of natural disasters for Enki Holdings) says.Investors are thinking about that too. At one point Monday, gasoline futures were up as much as five percent.http://www.npr.org/2017/08/28/546714566/economic-impact-of-h...Perhaps CBI is one of them that knows how? I'll suggest that the short term bump wouldn't be enough to move the needle.That said, if they execute well, it would boost investor confidence.
Could you provide a link to the plants being underwater? I have not seen anything in the news. </>Very little hard news except that several Refiners have announced that they are closed down and under water. I saw on the weather channel yesterday a clip of workers from CP Chem’s Baytown facility being evacuated by boat because the facility was under water. This story also said the ExxonMobil refinery in that area had been evacuated for the same reason. Most of all of these facilities are located near the coast on very flat land just a few feet above sea level. I have been to Baytown and was amazed by the size and the number chemical plants, literally hundreds of them worth may billions lining the bayous that feed into Tabbs Bay and eventually Galveston Bay. One of the biggest of bayous, Buffalo Bayou has been subject to very heavy flooding in Houston proper according to the weather channel. Baytown is on Trinity Bay and so until we see some figures for flood levels in Trinity Bay it will be difficult to estimate how much water got into the chemical facilities. There seems to be no access into the area at the present time, so any estimable as to storm damage at this time is strictly wishful thinking, but it may turn out that insured losses to these Chemical facilities will be much greater that residential losses. I am certainly no expert water damage to petrochemical plants and the is no historical precedent, but estimates of losses that I have seen to date seem woefully low. And a realistic estimate will have to wait until the water recedes and access to the area is possible.A good Idea of the size petrochemical facilities in the area can be gained from Google maps. Zoom to Baytown switch to satellite, and zoom along some of the bayous till you can see the names of the companies located in the area.
Following two days of tweets and public reports of chemical odors in Houston, ExxonMobil disclosed Tuesday that two of its refineries accidentally released 12,000 pounds of hazardous vapors into the air after being damaged by Hurricane Harvey.http://www.pbs.org/newshour/rundown/exxonmobil-texas-refiner...
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