US refining put on ice

Blizzards in Texas have dramatically halted downstream activities, leaving opportunities for facilities still running

Arctic conditions across the US Gulf Coast have forced downstream companies to declare force majeure and shut in more than 3.6mn bl/d of refining capacity. In the shale patch, intermittent blackouts and power outages have caused widespread supply disruptions as temperatures plummeted to their lowest level in more than 50 years. Almost one-third of US production has been impacted by the cold snap, the largest on record. And while WTI broke the $60/bl ceiling in early February, the hit on refining demand has helped stabilise the oil price, preventing any sudden acceleration due to the knocked-out production. “Given the 3.6mn bl/d refinery capacity shut-in, with refineries estimated to have rec