Oil markets roiled as Harvey hits U.S. petroleum industry

An oil tank damaged by Hurricane Harvey is seen near Seadrift, Texas, August 26, 2017

By Ahmad Ghaddar

LONDON (Reuters) – Oil markets were roiled on Monday after Tropical Storm Harvey wreaked havoc along the U.S. Gulf Coast over the weekend, crippling Houston and its port, and knocking out several refineries as well as some crude production.

U.S. gasoline prices hit two-year highs as massive floods caused by the storm forced refineries in the area to close. In turn, U.S. crude futures fell as the refinery shutdowns could reduce demand for American crude.

Brent futures steadied as pipeline blockades in Libya slashed the OPEC state’s output by nearly 400,000 barrels per day .

Harvey is the most powerful hurricane to hit Texas in more than 50 years, killing at least two people, causing large-scale flooding, and forcing the closure of Houston port as well as several refineries.

The U.S. National Hurricane Center said Harvey was moving away from the coast but was expected to linger close to the shore through Tuesday. It said floods would spread from Texas eastward to Louisiana.

Texas is home to 5.6 million bpd of refining capacity, and Louisiana has 3.3 million bpd. Over 2 million bpd of refining capacity was estimated to be offline as a result of the storm.

Spot prices for U.S. gasoline futures surged 7 percent to a peak of $1.7799 per gallon, the highest level since late July 2015, before easing to $1.7341 by 1341 GMT.

U.S. traders were seeking oil product cargoes from North Asia, several refining and shipping sources told Reuters, with transatlantic exports of motor fuel out of Europe expected to surge.

“Global refining margins are going to stay very strong,” said Olivier Jakob, managing director of Petromatrix.

“If (U.S.) refineries shut down for more than a week, Asia will need to run at a higher level, because there’s no spare capacity in Europe.”

About 22 percent, or 379,000 bpd, of Gulf production was idled due to the storm as of Sunday afternoon, the U.S. Bureau of Safety and Environmental Enforcement said.

There might also be around 300,000 bpd of onshore U.S. production shut in, trading sources said.

Brent crude futures were up 2 cents at $52.43 per barrel. U.S. West Texas Intermediate  crude futures  were down 50 cents at $47.37.

The price moves pushed the WTI discount versus Brent to as much as $5.24 per barrel, the widest in two years.

 

 

(Additional reporting by Henning Gloystein in Singapore; Editing by Dale Hudson and Edmund Blair)

 

Exxon Mobil fined for Louisiana refinery explosion that injured four

FILE PHOTO: Storage tanks are seen inside the Exxonmobil Baton Rouge Refinery in Baton Rouge, Louisiana, U.S. on November 6, 2015. REUTERS/Lee Celano/File Photo

By Erwin Seba

HOUSTON (Reuters) – Exxon Mobil Corp has been fined about $165,000 by U.S. regulators for safety lapses including inadequate training and equipment maintenance over an explosion that injured four workers at an aging Baton Rouge, Louisiana, refinery last year.

The U.S. Occupational Safety and Health Administration (OSHA) issued nine citations, several of which echo previous cautions by federal agencies at two other Exxon plants. The citations, issued in May, were seen by Reuters this month.

A separate investigation by the U.S. Chemical Safety Board (CSB) is ongoing and its report on the incident is due by year-end.

Exxon said it is contesting the OSHA citations and fines.

The facility was faulted five years ago by the U.S. Environmental Protection Agency (EPA) for failing to address corrosion on pipes and valves and for inadequate shutdown and emergency procedures provided to workers.

The Nov. 22, 2016 explosion on a sulfuric-acid alkylation unit that makes octane-boosting components of gasoline in the sprawling Baton Rouge refinery and chemical plant injured four workers, two of them severely. Two of the affected workers declined to comment; others could not be reached.

A worker on the alkylation unit removed the cover of a malfunctioning valve on an isobutane line and used a wrench to turn the value stem, Exxon reported to the Louisiana Department of Environmental Quality in a letter. Volatile isobutane is converted in the alkylation unit to a component of gasoline.

As the operator turned the valve stem, portions of the valve fell out, releasing isobutane, according to the Exxon letter, which was ignited by a welding machine 70 feet away.

One worker was knocked off a scaffold next to the alkylation unit and left dangling over the fire, according to two sources. Another worker was burned over most of her body.

Exxon’s safety procedures and training for operators on the alkylation unit were lacking, equipment was not properly maintained, and required inspections were not carried out within required time periods, according to a copy of the citations seen by Reuters.

“We cooperated with OSHA’s investigation and shared extensive information and records,” said Exxon spokeswoman Charlotte Huffaker. “We are contesting the citations and associated penalty.”

Huffaker said “nothing is more important” to Exxon than maintaining a safe workplace for workers and residents near its facilities.

Eight of the nine citations were listed as serious, each carrying a fine of $12,675. The ninth, for failing to carry out external visual and ultrasonic inspections of piping, totaled $63,373.

The latter fine was higher because Exxon was cited in 2016 for violating the same inspection standard at a Baytown, Texas, refining and chemical plant complex, OSHA said in the citation.

In a report issued in May after a two-year investigation of a 2015 explosion at an 86-year-old Torrance, California, refinery then owned by Exxon, the CSB said the company lacked a procedure for operating a fluidic catalytic cracking unit in an idled mode, as was being done when the explosion took place.

Exxon sold the Torrance refinery to PBF Energy Inc in July 2016.

In 2012, the EPA inspected the Baton Rouge refinery as part of a risk management prevention program. It found Exxon had not examined in five years more than 1,000 underground pipes, many of which were corroded, according to the agency’s report on the inspection. The EPA also said emergency and shutdown procedures failed to provide needed details for operators.

Huffaker said in an email that Exxon contested the violations, and said the EPA withdrew all but two of its findings. She did not specify the two violations but said Exxon resolved those issues.

 

(Reporting by Erwin Seba; Editing by Gary McWilliams and Tom Brown)

 

Tropical Depression Cindy still packs a punch after landfall on Thursday

Radar from the continued threat of Tropical Storm Cindy

By Kami Klein

In the wake of the landing of Tropical Depression Cindy, there is extensive flooding in many states, the death of a 10 year old boy from debris in Fort Morgan, Alabama  as well as the damage and injuries from an F2 tornado that plowed through Birmingham, Alabama on Thursday,  From reports by the National Weather Service, this was just the beginning of problems that will be arising from this intense storm system.   

The F2 Tornado that hit a heavily populated area in Birmingham, Alabama Thursday afternoon left extensive structural  damage and injured four people. The Weather Channel also reported that Mayor Tim Kerner of the town of Lafitte, Louisiana (located south of New Orleans) said the rising water may impact homes and vehicles, and he issued a voluntary evacuation for all residents.

The AP has reported that more than a foot of rain has fallen in Ocean Springs, Mississippi. Residents are concerned with the damages and hazards brought by the immense amount of water, including the dangers of alligators that are prevalent in many ponds and will now move into more populated areas.  

Mississippi residents are not the only people concerned about frightening impacts in nature caused by the flooding. The Alabama Cooperative Extension System warned of floating colonies of fire ants in the flood waters.  In a statement, the agency said the fire ants may resemble ribbons, streamers or large balls of ants floating on the water and that residents should be on the lookout when maneuvering in or being near flooded areas.

So far the states of Louisiana, Mississippi, Alabama, Texas, Tennessee and even southern Arkansas have been affected by the torrential rains contained in Tropical Depression Cindy.  Officials in all states have warned that there is a strong possibility for more flash flooding and tornadoes.  

In a report by The Weather Channel, remnants of the storm moved into Tennessee on Friday, knocking down trees and prompting power outages. According to Memphis Light Gas and Water, nearly 10,000 customers were without power Friday morning. Kentucky and West Virginia are bracing themselves for Heavy rainfall and flooding and reports from the weather service show that portions of Michigan and Indiana are also being affected by this storm system as well.  

The National Weather Service says that the path of Tropical Storm Cindy will spread heavy rain into the Tennessee and Ohio Valleys today – and into the Appalachians and Mid-Atlantic tonight. Flash flooding is possible in these areas as well as strong to severe thunderstorms.  

 

 

 

 

Tropical storm Cindy heads inland in Louisiana; one dead in Alabama

This graphic shows an approximate representation of coastal areas under a hurricane warning (red), hurricane watch (pink), tropical storm warning (blue) and tropical storm watch (yellow). The orange circle indicates the current position of the center of the tropical cyclone. The black line, when selected, and dots show the National Hurricane Center (NHC) forecast track of the center at the times indicated. The dot indicating the forecast center location will be black if the cyclone is forecast to be tropical and will be white with a black outline if the cyclone is forecast to be extratropical. Courtesy of NOAA and the National Weather Service

(Reuters) – Tropical storm Cindy was headed inland near the Louisiana-Texas border on Thursday morning and continued producing heavy rainfall and life-threatening conditions over the northern Gulf Coast, the U.S. National Hurricane Center said.

The storm caused its first reported fatality on Wednesday when a 10-year-old boy struck by a log that a large wave dislodged while he stood near shore in Fort Morgan, Alabama, the Baldwin County coroner said.

Cindy is about 30 miles (45 km) west-southwest of Lake Charles, Louisiana, with maximum sustained winds of 40 miles per hour (65 km/h), is expected to weaken into a tropical depression later on Thursday, the Miami-based weather forecaster said.

“Now is the time to hide from the wind. Remain sheltered until the hazardous wind subsides,” the National Weather Service said in an advisory early on Thursday warning.

Cindy could drop six to nine inches (15-23 cm) of rain and bring as much as 15 inches to some parts of southeastern Louisiana, Mississippi, Alabama and Florida, the NHC said.

The storm could cause a surge of up to three feet (1 meter) in isolated areas and possibly spawn tornados from southern Louisiana to the Florida Panhandle, the NHC said.

Two tornados were reported about four miles (6.4 km northwest of Biloxi, Mississippi. Two more were reported on the northwest coast of Florida, according to the National Oceanic and Atmospheric Administration.

The Louisiana Offshore Oil Port, the largest privately owned crude storage terminal in the United States, suspended vessel offloadings but expected no interruptions to deliveries from its hub in Clovelly, Louisiana.

Energy companies with operations in the Gulf of Mexico reported little impact on production. Shell suspended some well operations and Anadarko Petroleum, ENI and Enbridge said they had evacuated non-essential personnel.

The Gulf of Mexico region is home to about 17 percent of U.S. crude and 5 percent of dry natural gas output, according to the U.S. Energy Information Administration.

(Reporting by Brendan O’Brien in Milwaukee, editing by Larry King)

Two people killed in Louisiana mobile home hit by tornado

A trailer home where two people were killed after a possible tornado, is damaged in Breaux Bridge, St. Martin Parish, Louisiana, U.S.,

By Letitia Stein and Steve Gorman

(Reuters) – A tornado flipped over a mobile home in south-central Louisiana on Sunday, killing a toddler and her mother, as forecasters warned of a dangerous weather system bringing twisters, fierce straight-line winds and hail to the Gulf Coast region.

Neville Alexander, 3, and Francine Gotch, 38, were inside the mobile home in the town of Breaux Bridge, just outside Lafayette, Louisiana, when the storm slammed into the dwelling, causing “significant damage,” the St. Martin Sheriff’s Office said on its Facebook page.

Video posted on the page showed the remnants of a mobile home with its walls and roof collapsed and furniture and other household belongings upended and scattered. Nearby houses and vehicles appeared unscathed.

The National Weather Service (NWS) later confirmed the demolished trailer was upended by a tornado packing winds of around 100 miles per hour (161 kph) and ranked as a category EF-1 on the five-point Enhanced Fujita Scale. An EF-5 is the highest rating.

Louisiana Governor John Bel Edwards said the Weather Service had issued a “high risk” advisory for central and northern Louisiana, warning residents to be vigilant of the threat of severe weather.

Other parts of Louisiana were under “moderate and enhanced” alerts for severe weather, he said, adding, “This is a statewide weather event.”

In addition to tornado threats, thunderstorms were bringing hurricane-force, straight-line winds and large hail to the region, the governor said.

Television station WAFB-TV in Baton Rouge, the state capital, reported more than 4,500 lightning strikes across the state by late afternoon.

Edwards called for members of the public to remain indoors and avoid unnecessary travel, while urging mobile homes residents to stay with friends or relatives in more solid structures overnight if possible.

The NWS posted tornado watches for a portion of eastern Texas and most of the two neighboring Gulf states of Louisiana and Mississippi. A flash-flood warning was in effect for a large swath of east Texas and Louisiana.

Tornado sightings were reported in central Texas and north-central Louisiana, while high winds were snapping trees and causing other damage, the NWS reported.

The brunt of the storm system, also a concern for southern Arkansas, was expected to track eastward into Mississippi after dark, and possibly into Alabama on Monday morning.

The warnings come after severe weather killed at least 21 people in the South earlier this year, many in mobile homes demolished by tornadoes in Georgia and Mississippi.

(Reporting by Letitia Stein in Tampa, Florida, and Steve Gorman in Los Angeles; Additional reporting by McGurty in New York; Editing by Phil Berlowitz and Sandra Maler)

Thirty-one reported injured after tornadoes pummel Louisiana

Cleanup crews pick up New Orleans area after tornado

By Bryn Stole

BATON ROUGE, La. (Reuters) – Some 31 people were reported injured after six tornadoes tore through New Orleans and other parts of Louisiana, pounding across highways and streets and leaving trees, power lines and homes leveled by Wednesday morning.

Federal and state damage assessment teams on Wednesday began working to see if Louisiana can qualify for federal assistance, Mike Steele, communications director for the Governor’s Office of Homeland Security and Emergency Preparedness, said.

Governor John Bel Edwards declared a state of emergency throughout Louisiana, as search and rescue teams scoured the landscape for survivors from Tuesday’s tornadoes.

“The width of the devastation was unlike any that I have seen before,” Edwards told a news conference on Tuesday. “When you see it from the air you’re even more impressed that so few people were injured and that nobody’s life was lost.”

The storm system battered New Orleans and suburban Baton Rouge, marking the fourth time in a year the state has been jolted by natural disasters.

A string of tornadoes struck in February 2016 and four people died in widespread floods in March. Louisiana was then devastated by major flooding in August, when more than 60,000 homes were damaged or destroyed in 20 parishes, or territorial districts, marking the state’s worst disaster since Hurricane Katrina in 2005.

One twister carved out a swath of destruction about two miles (3 km) long and about half a mile (1 km) wide, affecting an area with 5,000 properties, New Orleans Mayor Mitch Landrieu said.

“It’s devastating and a lot of families have lost everything that they have,” Landrieu said.

Thirty-one injuries have been reported, according to the mayor’s office. Six of them were moderate or severe injuries, and there have been no reported fatalities, the office said in a statement.

At least 8,100 customers were without power in the New Orleans area by early Wednesday, according to Entergy New Orleans Inc <EYNOO.PK>. About 150 workers from the energy company assisted in recovery efforts on Wednesday.

Nancy Malone, communications director for the Red Cross of Louisiana, said damage was reported in about six parishes, where the Red Cross was assisting first responders.

“While this was not expected, communities in southeast Louisiana have been affected numerous times in the last 12 months,” Malone said. “Here we are again.”

(Additional reporting by Gina Cherelus, Mike Cooper and Irene Klotz; Writing by Daniel Trotta; Editing by Alistair Bell)

Tornadoes tear path of destruction through Louisiana, at least 20 hurt

By Bryn Stole

BATON ROUGE, La. (Reuters) – Six tornadoes tore through New Orleans and other parts of Louisiana on Tuesday, injuring at least 20 people as the storm roared across highways and streets, leveling trees, power lines and homes.

Governor John Bel Edwards declared a state of emergency throughout Louisiana, while search and rescue teams scoured the landscape for survivors.

“The width of the devastation was unlike any that I have seen before,” Edwards told a news conference. “When you see it from the air you’re even more impressed that so few people were injured and that nobody’s life was lost.”

The Louisiana National Guard said it was conducting search-and-rescue operations, looking for injured people who may be stranded, and assessing damage.

The storm system battered New Orleans and suburban Baton Rouge, marking the fourth time in a year the state has been jolted by natural disasters.

A string of tornadoes struck in February 2016 and four people died in widespread floods in March. Louisiana was then devastated by major flooding in August, when more than 60,000 homes were damaged or destroyed in 20 parishes, or territorial districts, marking the state’s worst disaster since Hurricane Katrina in 2005.

New Orleans Mayor Mitch Landrieu told reporters that one twister carved out a swath of destruction about two miles (3 km) long and about half a mile (1 km) wide, affecting an area that holds 5,000 properties.

“It’s devastating and a lot of families have lost everything that they have,” Landrieu said.

Edwards estimated the number of injured at 20, some of them he termed “not life-threatening, but very serious.”

Storm reports on the National Weather Service website said some 29 people suffered injuries.

One person was injured and about 200 cars damaged at a National Aeronautics and Space Administration assembly building in New Orleans, but flight hardware for NASA’s new heavy-lift Space Launch System rocket and Orion capsule appear to have escaped damage, associate administrator Bill Gerstenmaier said.

Nearly 7,800 customers were without power in the New Orleans area by early Wednesday, according to Entergy New Orleans Inc <EYNOO.PK>.

Nancy Malone, communications director for the Red Cross of Louisiana, said damage was reported in about six parishes, where the Red Cross was assisting first responders.

“While this was not expected, communities in southeast Louisiana have been affected numerous times in the last 12 months,” Malone said. “Here we are again.”

(Additional reporting by Gina Cherelus, Mike Cooper and Irene Klotz; Writing by Daniel Trotta; Editing by Lisa Shumaker and David Gregorio)

Louisiana man pleads guilty to threatening shooting at D.C. pizzeria

view of pizzeria where man threatened to shoot

(Reuters) – A Louisiana man pleaded guilty on Thursday to a federal charge that he threatened to carry out a shooting at a Washington D.C. pizzeria near another restaurant where days earlier a man opened fire as he investigated a fake news report, a prosecutor said.

Yusif Jones, 52, faces five years in prison after he pleaded guilty to one count of interstate threatening communications in Louisiana federal court when he will be sentenced on April 12, the office of United States Attorney Stephanie Finley said in a statement.

Jones also faces three years of supervised release and restitution and a $250,000 fine, the statement said.

Jones was accused of calling Besta Pizza on Dec. 7 and threatened to “shoot everyone in the place” in order to “save the kids.” The call was traced back to Jones in Shreveport and he was arrested, the statement said.

The call was placed three days after Edgar Maddison Welch took a rifle into Comet Ping Pong restaurant down the street from Besta Pizza “to self-investigate” a fake news report known as “Pizza Gate” that it was operating a child abuse ring, police said.

The suspect entered the restaurant and pointed a gun at a restaurant employee, who fled and notified authorities, police said. The man then discharged the weapon inside the restaurant. There were no injuries.

In November, media outlets reported about death threats against the owner of the restaurant after internet postings said the restaurant was operating a child abuse ring led by Democratic presidential candidate Hillary Clinton and her top campaign aide.

Police said there was no active investigation of child abuse allegations there. The attack on Comet was considered an example of how fake news reports that proliferated during the election year affected people’s lives.

(Reporting by Brendan O’Brien in Milwaukee; Editing by Toby Chopra)

U.S. law enforcement line-of-duty deaths hit five-year high in 2016

A Dallas police sergeant wears a mourning band and flower on his badge during a prayer vigil, one day after a lone gunman ambushed and killed five police officers at a protest decrying police shootings of black men, in Dallas, Texas, U.S.,

By Jon Herskovitz

AUSTIN, Texas (Reuters) – Law enforcement fatalities hit a five-year high in 2016 with 135 officers killed in the line of duty, including eight killed in ambush attacks in Dallas and Louisiana in July that raised nationwide concerns, a study released on Thursday said.

So far this year, 21 officers were killed in ambush-style attacks, the highest figure in two decades, according to the study from the National Law Enforcement Officers Memorial Fund, which tracks data on the incidents.

This included five police officers gunned down in Dallas in July by a deranged U.S. Army Reserve veteran, 25-year-old Micah X. Johnson, who said he aimed to avenge the shootings of black men by police nationwide.

A woman lights a candle at a makeshift memorial at Dallas Police Headquarters,

File Photo: A woman lights a candle at a makeshift memorial at Dallas Police Headquarters, one day after a lone gunman ambushed and killed five police officers at a protest decrying police shootings of black men, in Dallas, Texas, U.S., July 8, 2016. REUTERS/Shannon Stapleton/File Photo

“Public safety is a partnership and, too often, the service and sacrifice of our law enforcement professionals is taken for granted,” said Craig Floyd, president of the fund.

Firearms-related incidents were the number one cause of death, with 64 officers fatally shot, the survey said. Traffic-related incidents accounted for 53 deaths.

Among the officers killed were local and state police officers, federal border agents and corrections officers. The study did not break out the number of police officers killed.

The average age of the officers who died on duty this year was 40 and the average length of service was 13 years. Texas had the most fatalities, at 17, followed by California with 10 and Louisiana with 9, including three who were killed in July in Baton Rouge, the survey said.

A black Iraq war veteran fatally shot the three police officers and wounded three others in Baton Rouge in an ambush.

The Dallas and Baton Rouge attacks, less than two weeks apart, followed fatal shootings by police officers of black men in Minnesota and Louisiana.

There were protests nationwide this year over the killings by police of unarmed black men, incidents that raised questions of racial bias in U.S. policing.

The number of officers who died in the line of duty in 2016 was up 10 percent from the previous year of 123, the survey said.

“As we begin the new year, let us all resolve to respect, honor, and remember those who have served us so well and sacrificed so much in the name of public safety,” Floyd said.

(Reporting by Jon Herskovitz; Editing by Leslie Adler)

Thousands still in shelters after record Louisiana floods

Louisiana Floods

By Sam Karlin

BATON ROUGE, La. (Reuters) – More than 3,000 Louisiana residents were still in emergency shelters as record flood waters receded on Monday, while government officials weighed options for temporary housing after the state’s worst disaster since Hurricane Katrina.

About 60,600 homes have been reported damaged or destroyed in flooding that swept through 20 parishes, or counties, in the southern part of the state after torrential rains earlier this month.

With swollen rivers, streams and bayous returning to normal, many people were going back to their homes and businesses, and state offices had reopened.

But the governor’s office said 3,075 residents were still living in shelters as of Monday, a day before President Barack Obama is due to tour the stricken area.

The extent of the damage prompted the Federal Emergency Management Agency to extend a grace period to renew lapsed flood insurance policies for parts of Louisiana for the first time since Katrina in 2005.

“We’ve seen major destruction to communities across the state,” Roy Wright, deputy associate administrator for FEMA’s Federal Insurance and Mitigation Administration, said in a statement about the extension.

Residents have already filed more than 25,600 flood insurance claims. But only 42 percent of Louisiana homes in high-risk areas had flood insurance, while only 12.5 percent of homeowners in low and moderate-risk zones were covered, according to FEMA estimates.

The agency has also already received some 110,500 applications for individual assistance, and $74 million in individual grants has been paid out.

“When it comes to a home that is lost, FEMA money is not designed to replace insurance or make people whole again,” said FEMA spokesman Rafael Lemaitre. “It’s a life vest, not a life boat.”

So far, the number of people affected by the floods pales in comparison with the nearly 74,000 families forced out of homes after Katrina and the 11,000 displaced after Hurricane Rita, a storm that came a few weeks later in 2005.

In 2005, FEMA faced widespread criticism for what many considered a slow, inept response. But the agency appears to have benefited from experience.

“From the vantage point of a citizen, what we see is a much more coordinated state, federal and local partnership on the response,” said Adam Knapp, head of the Baton Rouge Area Chamber and a former deputy director of the Louisiana Recovery Authority after Katrina.

“That is a perhaps a hard-fought, hard-won experience for us since Katrina – when we learned how important it is to be coordinated in the immediate response.”

FEMA has formed a task force to identify temporary housing options for the thousands displaced by the floods, Lemaitre said. That may include manufactured housing units that meet or exceed government certifications, he said.

FEMA paid $6.6 billion to about 1.07 million households and individuals in the Gulf states after Katrina, $5.3 billion of which went to Louisiana alone.

In response to this month’s flooding, FEMA has issued more than $15 million in advanced flood insurance payments to Louisianans who sustained damages, the agency said in a statement on Monday.

(Additional reporting and writing by Chris Prentice in New York; editing by Frank McGurty and Tom Brown)