Several Permian-focused U.S. shale producers — including Occidental Petroleum, Diamondback Energy and a host of smaller companies — are forecasting lower oil output in the first quarter as a result of last week’s storm.
Texas power sales totaled $50.6 billion last week compared to just $4.2 billion for the week prior, with utilities expected to pass the costs of Winter Storm Uri repairs onto customers and taxpayers for decades to come. The state’s government ordered utilities not to cut customers’ power over payment issues.
At least seven Texas refineries were trying to restart as of early Monday, with varying degrees of success. Several lacked the power needed, and others struggled with storm-related damage, including water leaks, burst pipes, cracked pumping and other equipment damage.
Texas’s grid was mere seconds away from facing involuntary, cascading blackouts that would take months to restore, similar to a 2012 disaster in India that cut power for 700 million people.
Commodities trader Macquarie Group realized a $215 million windfall by shifting gas and electricity around the country to take advantage of soaring energy demand caused by Uri.
Following is our compilation of force majeure and production disruption announcements:
BASF declared force majeure on nylon products and intermediates made at its Freeport, Texas, plant and on Ultraform® POM Q600 grades.
Braskem declared force majeure on polypropylene products.
Celanese declared force majeure on a broad list of products.
Chevron Phillips declared force majeure on polyethylene products.
Covestro announced a new force majeure effective Feb. 14 on all polycarbonate products, superseding a prior force majeure that was in place.
DuPont declared a global force majeure for Zytel® (including Zytel® HTN and Zytel® Specialty Nylons), Crastin®, Rynite®, Selar®, Minlon® and Pipelon®.
Flint Hills declared force majeure on polypropylene products due to the storm.
ExxonMobil said it is allocating polypropylene products.
Formosa expanded and extended its force majeure declaration to all Formolene® polyolefin products.
Ineos declared force majeure on polypropylene products due to the storm.
Ineos Styrolution declared force majeure on Luran® S ASA, Terluran® ABS, and Novodur® high heat ABS.
Invista declared force majeure on U.S. supply of PA66 intermediate chemicals.
LyondellBasell declared force majeure on polyethylene and polypropylene products due to the storm.
LyondellBasell announced a partial lifting of force majeure, affecting Line 5 at its Morris, Illinois, facility and LD1, LD2 and PF4 at its Clinton, Iowa, facility.
Occidental, the second largest producer in the Permian Basin, declared force majeure on oil deliveries.
OxyChem declared force majeure on U.S.-based PVC products.
Sabic declared force majeure on LEXAN™ resins, CYCOLOY™ resins, XENOY™ resins, GELOY™ XP series resins, VALOX™ FR resins and XYLEX™ resins, as well as ABS product from its Tampico, Mexico, plant.
Total declared force majeure on polypropylene products made at its La Porte, Texas, facility.
Vestolit declared force majeure on suspension, copolymer and emulsion PVC resins produced in Colombia and Mexico due to feedstock disruptions from the Gulf Coast.
Crude prices were higher in early trading today, with WTI up 0.2% to $61.94/bbl and Brent up 0.4% at $65.52/bbl. Natural gas was off 2.0% at $2.89/MMBtu.
Early reports suggest Russia and Saudi Arabia are at odds over whether to keep OPEC cartel production flat into next month or further ease restrictions. A decision is expected next week.
Many manufacturing sectors, including aerospace, appliances and automotive, are suffering disruptions due to a national shortage of steel, with the hot-rolled steel price at the highest level in 13 years.
We expect continuing logistics disruption in the U.S. from severe winter conditions that blanketed much of the country last week.
Logistics conditions remain strained, with trucking demand exceeding availability and continued congestion at ports due in part to operating challenges related to the pandemic. Clients are advised to provide expanded lead times on orders to help ensure delivery dates.
In the U.S. yesterday, there were 56,044 new COVID-19 cases and 1,413 deaths.
The White House held a candlelight vigil commemorating the 500,000 COVID-19 deaths suffered over the past 11 months.
More vaccines are coming: Moderna received encouragement from regulators to expand the number of COVID-19 vaccine doses in each of its vials, Pfizer is ramping up production, and Johnson & Johnson’s vaccine could be approved as early as this week.
An anti-inflammatory drug traditionally used to treat rheumatoid arthritis is showing signs of promise in treating COVID-19 as well, helping the most severely infected patients battle many symptoms.
Commodities hit their highest levels in almost eight years amid booming investor demand, with the Bloomberg Commodity Spot Index for 23 raw materials rising 67% since reaching a four-year low last March.
Portugal, recently suffering the highest per-capita COVID-19 infection rate in the world, saw daily infections drop below 1,000 yesterday, the lowest level since October, after imposing strict lockdowns on Jan. 15.
Global debt last year rose by $24 trillion to $281 trillion, representing 355% of global GDP, a higher debt-to-GDP ratio than during the Great Recession. Government debt jumped to 105% of GDP from 88% in 2019.
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We will provide further COVID-19 bulletins as circumstances dictate. For all COVID-19 updates and notices, please refer to the M. Holland website.
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