WASHINGTON (dpa-AFX) - Oil refineries along the Gulf Coast have been hit by the impact of Tropical Storm Harvey, which has crippled the region and caused catastrophic flooding.
Houston, a major U.S. city and home to significant oil companies, has been devastated by heavy rain and flooding in the wake of the storm's impact.
According to S&P Global Platts, eleven refineries in the region have been forced to close due to the impact of the devastating storm and flooding has knocked off 18 percent of U.S. refining capacity.
'Roughly 2.33 million b/d of Texas refining capacity remained shut, but the actual number is likely to be much higher, with a number of Texas refiners operating at reduced rates,' S&P Global Platts said on Wednesday.
Motiva Enterprises said it will reduce the capacity at its Port Arthur refinery in Texas, the largest in the country, by 60 percent. Earlier, media reports indicated that the refinery would be shut down completely.
'Although weather conditions continue to deteriorate, Motiva's Port Arthur Refinery remains stable at reduced rates approximately equal to 40% of capacity. Our highest priority remains the safety of our employees and community,' Motiva stated.
Motiva also pledged to donate $500,000 to support disaster recovery efforts in Houston and Port Arthur after the devastating impact of the tropical storm over the past several days. In addition, Motiva will match employee contributions as part of the company's internal-giving programs.
ExxonMobil said on Tuesday that extreme weather and flooding caused by Harvey has led to operational issues at its Texas facilities.
'Our Baytown complex has completed the safe shutdown of the majority of its operations. Our Beaumont refinery continues to operate at reduced rates, and has safely shut down some units as a result of adverse weather. ExxonMobil's Baton Rouge facilities are operating as normal,' the company said.
The Gulf Coast currently accounts for 15 percent of oil production in the U.S., down from nearly 30 percent a decade ago. This means that the U.S. will now be able to deal better with a disaster like Harvey.
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