Reports related to this article:
Project(s): View 8 related projects in PECWeb
Plant(s): View 5 related plants in PECWeb
Released November 15, 2018 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Rising oil prices have bolstered BP plc's (NYSE:BP) (London, England) bottom line, offsetting (for now) fears about global trade conflicts and falling U.S. crude and product stocks. The company acquired BHP Billiton plc's (NYSE:BHP) (Melbourne, Australia) U.S. shale assets during the quarter, and is upgrading operations at several refineries in anticipation of further production growth. Industrial Info is tracking nearly $33.5 billion in active projects involving BP worldwide, including about $19 billion worth that are under construction.
Click on the image at right for a graph detailing the top five industrial sectors for global BP projects.
"In the Downstream, we expect lower industry refining margins and we also expect higher levels of turnaround driven by activity at our Whiting refinery in the United States," said Brian Gilvary, the chief financial officer of BP, in recent earnings-related conference call.
BP's downstream business reported quarter-over-quarter growth, attributed to higher refining and petrochemical availability, and an improved retail performance. But the company expects to see lower industry refining margins through the end of 2018, with the company's Whiting Refinery in Whiting, Indiana, driving higher levels of turnaround spending. The facility is undergoing an $8 million planned outage on Unit 1, a natural gas-fired, combined-cycle (NGCC) combustion turbine that generates 549 megawatts, and has been at work on a $360 million naphtha hydrotreater unit addition that will have an 85,000-barrel-per-day (BBL/d) capacity and reduce sulfur content in gasoline from 30 to 10 parts per million (ppm) to meet Tier 3 regulations.
The turnaround will is expected to wrap up later this month, while the naphtha hydrotreater unit, which began construction in early 2017, is expected to be completed by the end of first-quarter 2019. Next quarter also is expected to see the refinery begin work on a $10 million turnaround and a $10 million upgrade to the Crude Pipestill 11A Unit, which will enhance the existing, 75,000-BBL/d unit by modifying its main fractionation column. Later in 2019, a $10 million upgrade to the FCCU 600 unit is expected to enhance the 65,000-BBL/d fluid catalytic cracking unit (FCCU) by modifying the main fractionation column and replacing the reactor and regenerator internals.
For more information, see Industrial Info's project reports on the Unit 1 outage, naphtha hydrotreater unit, the Crude Pipestill 11A turnaround and upgrade, and the FCCU 600 unit upgrade.
Another major refining project is in its early phases, where plenty of factors could alter, delay or eliminate spending: the $150 million coke-drum replacement at the Cherry Point Refinery in Blaine, Washington. BP plans to replace four drums that have reached the end of their useful lives in the 55,000-BBL/d Delayed Coker unit. For more information, see Industrial Info's project report.
"Looking specifically at the fourth quarter, we expect Upstream reported production to be higher than the third quarter, with the addition of BHP assets in the U.S. Lower 48," Gilvary said in the conference call.
BP continued to make strides on one of its largest projects, the $9 billion Mad Dog 2 crude oil production platform in the Gulf of Mexico, which is co-owned by Chevron Corporation (NYSE:CVX) (San Ramon, California) and BHP. The owners signed BMT Group Limited (Teddington, England) to provide a variety of marine-monitoring systems, including those pertaining to environmental monitoring and facility response. Mad Dog 2 is expected to produce 140,000 barrels per day (BBL/d) following its expected completion in early 2021. For more information, see Industrial Info's project report.
One of BP's messier projects is facing a long permitting process: the estimated $187 million Superfund cleanup and remediation of the Silver Bow Copper Mine in near Butte, Montana. According to Montana Public Radio, the parties in charge of the cleanup, including BP subsidiary Atlantic Richfield, have been holding a series of public workshops in the area, inviting local residents to help determine what the site will look like after the cleanup is over.
A recent presentation from Atlantic Richfield indicated the toxic mining and smelting waste could give way to a "lush greenway" with "interwoven trails and wetlands, and parks and playgrounds," according to Montana Public Radio, although the cleanup is not expected to be completed until fourth-quarter 2024 at the earliest. For more information, see Industrial Info's project report.
Higher oil prices more than doubled BP's third-quarter net profits to roughly $3.8 billion, compared with the same period last year. Oil prices have soared nearly 17% so far this year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right for a graph detailing the top five industrial sectors for global BP projects."In the Downstream, we expect lower industry refining margins and we also expect higher levels of turnaround driven by activity at our Whiting refinery in the United States," said Brian Gilvary, the chief financial officer of BP, in recent earnings-related conference call.
BP's downstream business reported quarter-over-quarter growth, attributed to higher refining and petrochemical availability, and an improved retail performance. But the company expects to see lower industry refining margins through the end of 2018, with the company's Whiting Refinery in Whiting, Indiana, driving higher levels of turnaround spending. The facility is undergoing an $8 million planned outage on Unit 1, a natural gas-fired, combined-cycle (NGCC) combustion turbine that generates 549 megawatts, and has been at work on a $360 million naphtha hydrotreater unit addition that will have an 85,000-barrel-per-day (BBL/d) capacity and reduce sulfur content in gasoline from 30 to 10 parts per million (ppm) to meet Tier 3 regulations.
The turnaround will is expected to wrap up later this month, while the naphtha hydrotreater unit, which began construction in early 2017, is expected to be completed by the end of first-quarter 2019. Next quarter also is expected to see the refinery begin work on a $10 million turnaround and a $10 million upgrade to the Crude Pipestill 11A Unit, which will enhance the existing, 75,000-BBL/d unit by modifying its main fractionation column. Later in 2019, a $10 million upgrade to the FCCU 600 unit is expected to enhance the 65,000-BBL/d fluid catalytic cracking unit (FCCU) by modifying the main fractionation column and replacing the reactor and regenerator internals.
For more information, see Industrial Info's project reports on the Unit 1 outage, naphtha hydrotreater unit, the Crude Pipestill 11A turnaround and upgrade, and the FCCU 600 unit upgrade.
Another major refining project is in its early phases, where plenty of factors could alter, delay or eliminate spending: the $150 million coke-drum replacement at the Cherry Point Refinery in Blaine, Washington. BP plans to replace four drums that have reached the end of their useful lives in the 55,000-BBL/d Delayed Coker unit. For more information, see Industrial Info's project report.
"Looking specifically at the fourth quarter, we expect Upstream reported production to be higher than the third quarter, with the addition of BHP assets in the U.S. Lower 48," Gilvary said in the conference call.
BP continued to make strides on one of its largest projects, the $9 billion Mad Dog 2 crude oil production platform in the Gulf of Mexico, which is co-owned by Chevron Corporation (NYSE:CVX) (San Ramon, California) and BHP. The owners signed BMT Group Limited (Teddington, England) to provide a variety of marine-monitoring systems, including those pertaining to environmental monitoring and facility response. Mad Dog 2 is expected to produce 140,000 barrels per day (BBL/d) following its expected completion in early 2021. For more information, see Industrial Info's project report.
One of BP's messier projects is facing a long permitting process: the estimated $187 million Superfund cleanup and remediation of the Silver Bow Copper Mine in near Butte, Montana. According to Montana Public Radio, the parties in charge of the cleanup, including BP subsidiary Atlantic Richfield, have been holding a series of public workshops in the area, inviting local residents to help determine what the site will look like after the cleanup is over.
A recent presentation from Atlantic Richfield indicated the toxic mining and smelting waste could give way to a "lush greenway" with "interwoven trails and wetlands, and parks and playgrounds," according to Montana Public Radio, although the cleanup is not expected to be completed until fourth-quarter 2024 at the earliest. For more information, see Industrial Info's project report.
Higher oil prices more than doubled BP's third-quarter net profits to roughly $3.8 billion, compared with the same period last year. Oil prices have soared nearly 17% so far this year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
