Exxon's Baytown, Texas, refinery to shut gasoline unit by early next week

Mods: Didn't know exactly where to put this so please move if needed.

A relative that works at a small refinery in Baytown alerted me to this a few moments ago.

Exxon Mobil Corp plans to shut the small gasoline-producing unit at its 560,500 barrels-per-day (bpd) Baytown, Texas, refinery by early next week because of low demand due to efforts to halt the spread of the coronavirus pandemic.

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Due to everyone being ordered to stay at home there has been a severe drop in gasoline sales nationwide, which is to be expected. However we all know that Big Oil has a stranglehold on the majority of our politicians.

This is a small gasoline refinery, however I wonder if this could start becoming a trend.

I also wonder if maybe the fact that it could start happening at more refineries could be one of the reasons why Trump is pushing for businesses to open back up by Easter because there is no doubt in my mind that our representatives who are in Big Oil's pocket are pressuring him to protect those massive profits they're so spoiled to getting.

Before somebody accuses me of being biased in this I didn't vote for Trump but I support him as my President, and the majority of my family works in refineries- I have worked at a few myself in the past. That being said I am not blind to the fact that Big Oil exerts more influence over our politicians than nearly any other group.

Thoughts?

It was just a matter of time at the current gas prices, they're not sustainable at under $2/gal at the pump.

a reply to: HalWesten

Actually the majority of my family has been paying less than $2 per gallon since long before this Covid-19 stuff popped up, but the majority of them live close to the refineries while here in Kentucky not so much (until recently)- and they love to rub it in!

Well yeah, it's always been a lot cheaper near the refineries. Back when we still had a refinery gas was cheaper here too but that hasn't been the case since then until recently.

a reply to: HalWesten

Hahaha, I live in PA....PA politicians love them some gas tax. It was 2.22 today

Big government has to big govern

a reply to: GeauxHomeYoureDrunk

Can the refineries convert to diesel fuel ? Diesel fuel prices in this area are still over $2 per gallon. Many years ago a diesel fuel refinery had an explosion and fire, I think in Texas, and prices went from 60 cents a gallon to over $3 a gallon almost overnight in this area (Western SC). Regular citizens get screwed and our elected officials get rich...

a reply to: NightFlight

Converting from refining gasoline to diesel? I'm not sure of the logistics of that but it seems like an extremely huge and expensive undertaking. Also by the time they got it done the COVID-19 spread would most likely be over with for the most part- and we know they aren't going to give up those juicy profits unless they are forced to by government and the politicians are in Big Oils pocket so...

Maybe the government ought to tell those azzhats they are "essential business" and they need to keep producing even if it's cut back. China is gearing back up maybe they need cheap petrol. All kinds of solutions instead of shutting down cause they ain't making enough per gallon

a reply to: putnam6

Now you know that's not going to happen. If profits go down how are they going to pay all of those politicians that are on their payroll? We can't be having that!

It says, "because of low demand ." Which means we have plenty of fuel.... no worries.

Maybe they should turn it into a hand santizer plant : P

a reply to: CraftyArrow

We definitely have plenty of fuel- that is not the issue. The issue is that the big oil companies don't like losing their profit margins so the push to re-open the country by Easter could be the result of pressure on those politicians they have on their "payrolls" who in turn pressure the president.

I realize there are surely other mega-businesses pressuring their own "bought and paid for" reps to do the same, but Big Oil is definitely one of the biggest with a dog in this fight. And if many, many people end up sick or dying from jumping the gun on re-opening businesses there's going to be a lot of angry Americans who were stuck at home with no income for nothing.

a reply to: GeauxHomeYoureDrunk

About your "Big Oil" statement...

Where I was working it costs an oil company roughly $32 a barrel to get the oil out of the ground and to market.

Last I checked oil was selling at $24 a barrel.

So they should keep producing at a loss because...

Why exactly?



And ETA, the experts are saying that oil will not return to over $32 a barrel until at least this fall.

Which means a few million high-paid jobs are gone till then, the industries that service these people are going to go broke and we have lost 7% of our GDP for who knows how long.

This isn't just about an oil company CEO's bonus check.

The average mineral rights owner in North Dakota is a female over 65 who makes a little over $609 a month.

They are toast too now.

a reply to: GeauxHomeYoureDrunk

Thoughts?

I think this will have large implications on the petro dollar and US economy. If the cost of oil keeps dropping then it will go into negative equaity. The thing is you cannot turn some of these wells off you have to keep taking out the oil even at a loss.

Fast way to bankrupt an industry. In some ways it might be a good thing our dependency on oil is outdated.

The spring and fall are maintenance shutdown times for refineries across the US.

For a couple of years I worked the traveling maintenance shutdown crews across the state of Calif.

Good money, long hours, little sleep, and bad food living in RVs in refinery parking lots.

a reply to: GeauxHomeYoureDrunk

I'm glad it's a small refinery. Low gas prices are good for all of us. Especially Truckers. $1.89 a gallon here in the Chicago area today.