Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )

Reuters:  Oil refineries along the U.S. Atlantic Seaboard braced for Hurricane Sandy on Friday, putting in place emergency plans ahead of the storm’s expected landfall in the Northeast early next week.

Six East Coast oil refineries representing 1.19 million barrels per day, or 7 percent of total U.S. capacity, could potentially be hit by the deadly storm, which left 21 dead as it passed through the Caribbean and churned northward.

The threat of the storm has boosted gasoline and heating oil futures and cash product prices in the New York Harbor over the past two sessions.

Forecasters say Sandy is expected to be pulled in by another storm system moving from the west, making it come ashore in the northeast late Monday or early Tuesday and unleashing heavy rains, storm surges and possibly near hurricane-force winds.

Some forecasters say Sandy has the potential to be a multibillion-dollar disaster, wreaking greater damage than last year’s Hurricane Irene, but it was too soon to tell its actual trajectory and refiners were taking early steps to prepare.

“Both our East Coast refineries have comprehensive hurricane preparedness procedures in place that they will implement based on the storm track, as they did last year for Hurricane Irene,” said Michael Karlovich, a spokesman for PBF Energy.

PBF Energy owns and operates two East Coast refineries, the 190,000 barrel per day Delaware City plan and the 180,000 Paulsboro plant in Southern New Jersey, across the Delaware River from the Philadelphia area.

Hurricane Irene, which hit the region in August 2011, caused severe flooding and power outages all along the East Coast, and some refinery disruptions. Phillips 66 closed its 238,000 barrel per day Bayway refinery in Linden, New Jersey and other refiners cut back rates but the oil industry escaped Irene with minor, if any, damage.

Hess Corp. said on Friday it had implemented its storm plan for its 70,000 bpd refinery in Port Reading, New Jersey and that it would continue to watch Sandy’s progress.

In addition, two other plants are potentially within the storm’s path, Philadelphia Energy Solutions’s 330,000 bpd Philadelphia refinery and Delta’s Monroe Energy 185,000 bpd Trainer, Pennsylvania plant.

Oil markets are closely watching for any potential disruptions to gasoline and heating oil supplies, as lean fuel stockpiles of fuel in the region make the East Coast vulnerable to price spikes, especially ahead of the winter heating season.

Read more

Hurricane Threatens East Coast Refineries – CNBC

Hurricane Sandy could send gas prices up – CBS

 Hurricane Sandy is on track to hit the East Coast early next week and along with growing weather-related concerns about the so-called “Frankenstorm,” analysts warn that gas price may increase as a result of Sandy’s landfall.

CBS News business and economics correspondent Rebecca Jarvis reports that Hurricane Sandycould shut down production and close off supply coming out of the East Coast refineries, sending gas prices up. Another factor in a potential increase could be disruption to tanker traffic in the oil shipping channels around the East Coast.

Six-and-a-half percent — or approximately 3.1 million barrels daily — of the gasoline used in the United States is produced on the East Coast, home to five operation refineries — in Delaware City, New Jersey, and Pennsylvania.

Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable.  This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note.  This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary.  Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results.  EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services.  In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies.  As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note.  The company or companies covered in this note did not review the note prior to publication.


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.