at approx 1:21 PM (CST) a major explosion rocked the BP Amoco refinery in Texas City, a southeast Houston, TX suburb.
The area of the plant involved in the explosion processes approx 450,000 gallons per day of octane enhancers, more commonly known in the industry as gasoline additives.
Oil prices initially spiked on the news, but industry analysts say the loss of this processing facility will have more effect on retail gasoline prices than it will oil prices, since the output of this facility is used to boost the octane of already-refined gasoline. Consumers of mid and high octane grades as well as consumers in areas of the country where special additives are required to meet state-mandated emission standards.
This refinery provided 30% of BP Amoco's total daily output of refined fuels and 3% of the US daily total.
Initial reports indicate at least 4 dead and more than 100 injured. The death toll is expected to rise as cleanup operations get underway.