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US Weather Snarls Some Oil, Products Flows In Midwest, South

December 30, 2015

Severe weather in parts of the U.S. South and Midwest has disrupted regional shipments of some refined products and oil, including a trickle of crude trucked into the storage hub of Cushing, Oklahoma. Sources said several truck racks, which serve as distribution centers to move refined products such as gasoline and diesel to market, reported outages following a weekend of tornadoes and flooding that killed 43 people, leveled buildings and snarled transportation.

The storms caused a power outage at Phillips 66’s refined products distribution rack in Ponca City, Oklahoma, and the company has not yet provided a timeline for a return to normal operations, a source familiar with the matter said. The refiner’s rack in North Wichita, Kansas, also was down due to an ice storm but was expected to return to service at noon CST (1800 GMT), and its Glenpool, Oklahoma rack is closed due to flooding and is not expected to return to service until Tuesday morning, the source said.

A representative for Phillips 66 said it had not experienced any operational problems due to weather. Kinder Morgan said it had closed terminals in St. Louis and in Sauget and Rockwood, Illinois. “We expect those terminals to be operational again as soon as floodwaters subside,” a spokeswoman for Kinder Morgan said.

In Cushing, truck deliveries slowed due to dangerous road conditions, according to a source familiar with operations in the area. Although the majority of oil is piped into Cushing, truck deliveries can total between roughly 25,000 to 50,000 barrels per day, according to sources. One company that delivers oil via truck into Cushing said it was not operating trucks on Monday due to weather conditions.

While western and central Oklahoma were hit with severe winter weather, highways in the eastern part of the state were closed due to flooding, according to a notice posted on Sunday on the state’s website. Other states, including Missouri and New Mexico, have issued states of emergencies. 

 

 

 

 

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