US stands ready to tap emergency oil reserve after Saudi attacks

MOSCOW (MRC) -- The Trump administration is prepared to tap US emergency oil reserves if necessary after drone attacks shut oil output in Saudi Arabia, the world's largest crude exporter, reported Reuters with reference to a Department of Energy spokeswoman's statement.

Energy Secretary Rick Perry "stands ready to deploy resources from the Strategic Petroleum Oil Reserves if necessary to offset any disruptions to oil markets as a result of this act of aggression," spokeswoman Shaylyn Hynes said.

Yemen's Iran-aligned Houthi group claimed credit for Saturday's attacks on two plants at the heart of Saudi Arabia's oil industry, including the world's biggest petroleum processing facility Abqaiq.

Perry directed department leaders to work with the Paris-based International Energy Agency (IEA) "on potential available options for collective global action if needed," Hynes said.

The IEA said on Twitter earlier in the day that it was in contact with Saudi authorities and other major oil-producing nations, and that markets for now are well-supplied.

The United States has occasionally coordinated with the IEA on collective draw downs of oil from international reserves.

The SPR, held in heavily-guarded underground storage caverns on the Texas and Louisiana coasts, currently holds nearly 645 million barrels, or about the amount the United States consumes in a month.

President Donald Trump has often urged countries in the Organization of the Petroleum Exporting Countries, of which Saudi Arabia is a member, to produce more oil to moderate crude prices. US sanctions on OPEC members Iran and Venezuela have removed millions of barrels of oil from global markets.
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MOSCOW (MRC) -- Yemen's Iran-aligned Houthi group said it attacked two plants at the heart of Saudi Arabia's oil industry on Saturday, knocking out more than half the Kingdom's output, in a move expected to send oil prices soaring and increase tensions in the Middle East, reported Hydrocarbonprocessing.

The attacks will cut the kingdom's output by 5.7 million barrels per day (bpd), according to a statement from state-run oil company Saudi Aramco, or more than 5% of global oil supply.

The pre-dawn strikes follow earlier cross-border attacks on Saudi oil installations and on oil tankers in Gulf waters, but these were the most brazen yet, temporarily crippling much of the nation's production capacity. Saudi Arabia is the world's biggest exporter, shipping more than 7 million barrels of oil to global destinations every day, and for years has served as the supplier of last resort to markets.

While the Houthis claimed responsibility for the attack, US Secretary of State Mike Pompeo put the blame squarely on Iran, writing on Twitter that there was "no evidence the attacks came from Yemen."

"Amid all the calls for de-escalation, Iran has now launched an unprecedented attack on the world's energy supply," Pompeo said.

Saudi de facto ruler Crown Prince Mohammed bin Salman told US President Donald Trump by telephone that Riyadh had the will and capability "to confront and deal with this terrorist aggression," according to Saudi state news agency SPA.

The United States condemned the attacks and Trump told the crown prince that Washington was ready to work with the kingdom to guarantee its security, according to the White House. The U.S. Department of Energy also said it was ready to release oil from its strategic petroleum reserve if necessary. Energy Secretary Rick Perry also said his department would work with the International Energy Agency, which coordinates energy policies of industrialized nations, if global action is needed.

Saudi Arabia, leading a Sunni Muslim coalition that intervened in Yemen in 2015 against the Houthis, has blamed regional rival Shi'ite Iran for previous attacks, which Tehran denies. Riyadh accuses Iran of arming the Houthis, a charge denied by the group and Tehran.

Coalition spokesman Colonel Turki al-Malki said an investigation had been launched into who planned and executed the strikes. He said the Western-backed alliance would counter threats to global energy security and economic stability.

Aramco Chief Executive Amin Nasser said there were no casualties from the attacks.

Saudi Energy Minister Prince Abdulaziz bin Salman said Aramco would have more information within 48 hours, and it will draw down oil in storage to compensate for the loss. Aramco is in the process of planning what is expected to be the world's largest initial public offering.
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MOSCOW (MRC) -- In a Sept. 12 statement, Maag said it is bundling the activities of the companies it has acquired in recent years into what it calls “four centres of excellence”: pump and filtration systems, pelletizing systems, pulverizing systems, and recycling systems, said the Canplastics.

All of the companies will be managed as product brands – Automatik, Ettlinger, Gala, Maag, Reduction, and Scheer – that will be under the Maag Group umbrella brand.

The company says that the Maag Group is the visually identifiable umbrella brand; with the product brands each distinctively echoing it.

“The focused market orientation, with our products and services spread across four centers of excellence, will play a major role in the Maag Group’s further international growth in the coming years,” Group president Ueli Thuerig said in the statement. "Our aim with the new umbrella brand strategy is to strengthen our identity on the market. The established product brands enjoy great trust and confidence among their customers, and will remain specialists in their respective market segments, yet work close together when integrated systems solutions are required."

The Maag Group supplies customizable, integrated process technology systems for the polymer, chemical, petrochemical, pharmaceutical, and food industries.
MRC

MOSCOW (MRC) -- Kuwait National Petroleum Company spokesman, Abdullah Al-Ajmi, said the steam production system reopened in Kuwait’s Mina Abdulla refinery, reported Hydrocarbonprocessing with reference to a statement issued by KNPC.

The spokesman added that restoring full production is under the works.

The steam production system was shut down temporarily on Thursday after it stopped working and it was replaced by the hot circulation system.

As MRC informed earlier, in November 2018, Kuwait Petroleum Co prepared a study to transform its al-Zour refinery into a commercial one to increase its profitability.
MRC

MOSCOW (MRC) -- Valero Energy, together with Darling Ingredients, has initiated an engineering and development cost review for a new renewable diesel plant in Port Arthur, Texas in the US, said Biofuels-news.

In response to the increased demand for renewable diesel in low-carbon markets, the facility under review would be designed to produce 400 million gallons of clean fuel per year, as well as 40 million gallons of renewable naphtha.

The plant will be owned and operated by Diamond Green Diesel, which is the 50/50 joint venture between Valero and Darling.

The proposed facility in Port Arthur would be the first renewable diesel plant in the state of Texas; its location will leverage Valero’s existing refinery and optimise logistics management.

Production from the new plant would increase Diamond Green Diesel’s annual renewable diesel production capacity to around 1.1 billion gallons, with almost 100 million gallons of renewable naphtha.

According to Valero, final investment decision on the project is expected in 2021, subject to further engineering, obtaining necessary permits, and approval by both company boards. If plans go ahead, plant construction could begin in 2021, with operations slated to start in 2024.

“We expect low-carbon fuel mandates across the globe to continue to drive demand growth for renewable fuels,” said Joe Gorder, Valero chairman, president and CEO. “This project would meaningfully expand our renewable diesel segment, which continues to generate strong results, and demonstrates our commitment to environmentally responsible operations."

The joint venture’s future total production capacity includes volumes from Diamond Green Diesel’s plant in Louisiana, which is currently being expanded to produce 675 million gallons of renewable diesel and 60 million gallons of naphtha. The expansion should be complete by the end of 2021.
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