OT: Major explosion at Houston Refinery

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.
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snipped-for-privacy@dodgecity.cc wrote:

The loss of life is a terrible thing. Let me get that out right now.
Even so, to us out here in California where the gas prices have been going through the roof lately already, this is _not_ good news. Our reformulated gas is exactly what they're talking about in this article.
Great. :-(
Jeff
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Local news just broke into American Dreams. Refinery death toll now at 14. I work in a downtown office building approx 40 miles from the blast and we felt it. From TV coverage ground-zero looks like a small nuke hit it. Homeowners as far as 2 blocks away reporting sporadic glass damage (windows blown out).

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Jeff Mayner wrote:

Interesting to note that this will affect production of 3% of the fuel used daily. But I bet ALL fuel goes up by more than 5%. Bend over, here it comes again.
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.boB
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Yep, another kick in the ass for GM and Ford as well.
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If at first you don't succeed, you're not cut out for skydiving


".boB" < snipped-for-privacy@access4less.nospam.net> wrote in message
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The 3% number is correct. However, Fortune Magazine thinks that BP/Amoco will take a hit well into the $billions$ in liability claims (which it will of course pass on to consumers). Now that the dust has settled we're seeing more of the effects of the explosion. A few nearby homes and businesses were blown up to a foot off their foundation from the force of the blast. Glass damage claims are coming in from as far as 5 blocks away. On the up side, the plant is located in an impoverished area where most of the homes are little more than shotgun-modest shacks. On the down side the death toll now stands at 15. There were 109 people admitted to area hospitals, tonight 23 are still hospitalized and 1 of those is in ICU with 2nd & 3rd-degree burns over 90% of his body. Here in Houston the price bump (6 a gallon) hit immediately and of course is unjustified because whatever the effect on the wholesale price of gasoline won't actually be felt directly by the retailers for at least a month, at which time they'll of course bump the pump price another 6 to compensate.
Unfortunately for BP/Amoco their track record at this refinery shows a number of blemishes and safety violations. OSHA has hit them for $109,000 in fines just in the past year. At this same time last year (Mar '04) two BP/Amoco workers were scalded to death in another plant accident.
Of course the FBI descended on the scene like flies on a manure pile, looking for any possible link to terrorism, but found nothing. I really don't know how they could make that assessment so soon. Maybe they thought someone flew a private jet into the facility or some crazy thing like that.
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Jeff Mayner wrote:

Might be a good time for all of you to get on the phone with your state representatives. The Governor has the authority to ease those restrictions in a emergency and allow use of non formulated gas to come into the state.........
Jerry
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