PODCAST: Hurricane season has US base oil production in crosshairs, tightens supply

Author: Amanda Hay

2020/09/16

HOUSTON (ICIS)--Concerns mounted this week when Chevron’s refinery at Pascagoula, Mississippi, appeared to be directly in the path of Hurricane Sally, but the refinery is still operating, according to a company spokesperson.

The storm shifted to the east, making landfall along the Alabama/Florida border. With Hurricane Laura taking 42% of US Group II production capacity offline just three weeks earlier, there was serious concern that nearly 60% of Group II capacity could have been affected by Sally. Only Excel Paralubes in Lake Charles remains offline, however; Motiva and Chevron were spared direct hits.

With a major supplier offline for an unknown amount of time, prices are rising with support from firm costs.

US base oils expert Amanda Hay discusses current dynamics in this podcast interview by Anna Matherne and Alex Snodgrass.