Texas Oil Group Fears Extreme Flooding At Refineries
14:35 EST Friday, Sep 23, 2005
SAN FRANCISCO -(Dow Jones)- Hurricane Rita could be "potentially worse" for the U.S. refining sector than Hurricane Katrina, with some models pointing to extreme flooding in the key refining centers of Port Arthur and Beaumont, Texas, an official with the Texas Oil and Gas Association said Friday.
Hurricane Rita is "as bad, potentially worse," for Gulf Coast refining, said Ben Sebree, the association's vice president for government affairs. "This storm looks like another Katrina."
His association represents major integrated oil companies.
The Port Arthur/Beaumont area is home to four major refineries operated by Exxon Mobil Corp. (XOM) (capacity of 348,000 barrels per day); Motiva Enterprises (235,000 barrels); Total SA (TOT) (180,000); and Valero Energy Corp. (VLO) (250, 000).
Under some current models, Hurricane Rita would produce a 25-foot storm surge in eastern Texas, which Sebree said would place Port Arthur under 10 feet of water. Because Port Arthur is above sea level, the water would drain more quickly than New Orleans but the consequences could still be dire.
"The fear is serious flooding and facility damage from the wind that could result in weeks to get them operational again," he said.
Bad flooding damages key electrical systems that could potentially require months to repair, Sebree said.
"When the ocean comes in and floods your facility, you've got a big problem," he said. |
