Royal Dutch Shell Plc to recommence the operations of its Deer Park refinery in Texas

Royal Dutch Shell Plc, one of the most influential oil & gas industry majors, is expected to resume the operations of its 325,700 bpd (barrel-per-day) Deer Park oil plant in Texas, which was apparently closed down by force for almost a month, on the grounds of Hurricane Harvey’s destruction along the Texas gulf coast. The Deer park plant is basically a joint venture between the former and PEMEX (Petróleos Mexicanos) Company, a Mexico based petroleum firm, and is ideally one of the largest oil plants in Texas with a capacity of refining over 315,000 barrels of crude oil per day. PEMEX was also apparently forced to close down its largest oil plant in Salina Cruz, Mexico, after an earthquake of magnitude 8 on the Richter scale hit the southern part of the nation.

Since the last few years, the economy of North America has been severely affected due to the natural disasters hitting the region. The shutdown of the crude oil refining plants across the Texas Gulf Coast, which manufactures more than 25% of the fuel required by the country, is likely to result in a major fuel price hike. Post the hurricane, Shell has decided to restart the operations, considering the extensive product demand.

The operations of the largest crude oil distillation unit 2 (with a capacity of 270,000 bpd) of the Deer Park plant commenced on 17th September 2017. Distillation unit (DU) 2 and distillation unit (DU) 1, equipped with a capacity of 70,000 bpd, are reportedly critical for carrying out oil & gas operations of the plant. Shell thus, plans to restart the gasoline producing FCCU (fluidic catalytic cracking unit), 30,000 bpd platformer 2 reformer, and 45,900 bpd CR-3 reformer. The main function of the DU 2 is to carry out the initial refining of the crude oil transported into the plant and the provide hydrocarbon feed for all the other production units of the facility.

The operations of DU 2 were halted on August 17, 2017, subject to the fire accident at the facility. The firm is now eager to recommence the rest of the plant’s production operations after its closure, ever since the hurricane adversely affected the plant functioning.

For the record, Harvey Hurricane had nearly affected 25% of the manufacturing capacity of the U.S. section across the Gulf of Mexico. It had also adversely impacted over 20% of crude oil refining capacity of the country. The oil & gas market giant’s strategic move is expected to augment the crude oil costs, which have displayed a sharp rise in demand after the hurricane had disrupted the coastal and off-shore activities for a few days.

About Author

Dhananjay Punekar

Dhananjay develops content for Market Size Forecasters. A post graduate in mathematics as well as business administration, he worked as a process executive in Infosys BPO Limited before switching his professional genre. Following his childhood passion, he opted for a career in writing and now pens d...

Read More