US oil majors benefit from high prices in Q1

(hydrocarbonprocessing) -- First-quarter profits of US integrated oil companies are expected to rise year-over-year mainly thanks to higher Brent crude prices, which traded at more than USD118/bbl during the quarter, or about 12% higher than the same period a year earlier.

ExxonMobil, however, is likely to be the exception, as the world's largest publicly traded oil company is expected to report lower profits due to its large exposure to low natural gas prices, which during the first quarter tumbled 40.5% to USD2.50 per million BTUs compared with a year earlier.

US oil majors' quarterly results are expected to benefit also from a rebound in refining and marketing profits, which are expected to see a boost from a year earlier thanks to improved refining margins.

"Two factors are going to boost oil majors' earnings: higher crude prices and improved refining margins," says Alan Good, an analyst with Morningstar. "In Exxon's case, its unwavering focus on natural gas is going to hold it back."

MRC

(ei.wtin) -- The German speciality chemicals group Evonik has invested over EUR100m (GBR131m) in a new hydrogen peroxide plant in Jilin, China.

The plant is scheduled to be completed by the end of 2013 where it will annually produce 230,000 tons of hydrogen peroxide, which is mostly used as a bleaching agent in the textile and pulp industry.

Recently, Evonik founded Evonik Specialty Chemicals to run the new production facility in Jilin. The company will then supply H202 from the site directly to the adjacent propylene oxide plant run by Jishen Chemical via a pipeline that connects the two.

A long-term agreement is in place between the two companies and Jishen will use the new HPP0' process to make propylene oxide from the hydrogen peroxide.

Propylene oxide is mainly used in the manufacturing of polyurethane intermediates, with the polyurethanes then going into making things like upholstery for car seats or furniture.

MRC

(refinerynews) -- An oil spill in the Russian Arctic affected an area of up to 8,000 square meters after workers tried to open an old well, causing oil to gush uncontrollably for 37 hours, officials said.

The spill at the Trebs field started Friday and continued through the weekend, spurting out up to 500 metric tons of oil a day, the Nenets autonomous district administration said.
The oil well was in the area operated by a joint venture between Russian companies Lukoil Holdings and Bashneft, which received the license to work on the northern Trebs field last year.

The accident was most likely caused by breakage of an old well's corroded plug when workers attempted to operate it, said Viktor Ivkin, head of the Nenetsky autonomous district emergency ministry branch.

Workers managed to stop the fountain of oil Sunday morning, and work was under way to construct a storage facility for the spilled oil, he said.
MRC

(Reuters) -- State-owned refiner Mangalore Refinery and Petrochemicals Limited has declared force majeure on crude feedstock supply as well as refined product deliveries after having to shut its 15 million tpa (300,000 bpd) refinery due to a water shortage. A general force majeure has been declared for both incoming and outgoing shipments.

There was no immediate information on when India's Mangalore Refinery and Petrochemicals (MRPL) could restore operations at its 300,000 barrels per day (bpd) refinery after it shut due to a water supply shortage. It has declared force majeure and asked for crude shipments to its plant to be deferred. "The shutdown of MRPL is holding up the market for now," a trader said.

India's 60,000 bpd Numaligarh refinery has also been temporarily idled following a fire.

MRC

(canplastics) -- A deadly fire and explosion at a German chemical plant is creating big headaches for the global auto industry.

The explosion on March 31 at Evonik Industries, in the North Rhine-Westphalia region of Germany, has resulted in a shortage of a chemical compound used in plastic fuel and brake lines. Called CDT, it's a key ingredient used in the manufacturing of PA-12, or Nylon-12, which is used to make a specialized plastic for fuel and brake lines. PA-12 is favored because it can withstand heat and can stand up to corrosive gasoline additives.

About 40 percent of the global supply of PA-12 was cut off after the explosion, which killed two company employees. "A significant portion of the global production capacity of PA-12 (Nylon-12) has been compromised," declared a statement issued by the Automotive Industry Action Group. The chemical isn't easily replaced, the group also said, noting, "These are highly engineered products produced via a very complex manufacturing process."

Major automakers are reportedly concerned, but not yet panicked, about the situation. ⌠We are monitoring the situation and working with our suppliers, Ford spokesperson Todd Nissen said in a statement. ⌠At this point, we have not had any production disruptions. Nissen added that Ford has also not altered its future production schedule.
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