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Forbes/ Associated Press: Shell Cuts Crude Runs at Texas Refinery

Associated Press 08.22.07, 5:55 PM ET
DEER PARK, Texas – Royal Dutch Shell PLC said on Wednesday that it would cut crude runs at its Deer Park, Texas, refinery due to a shutdown of Mexican oil production caused by Hurricane Dean.

Shell and a subsidiary of Mexico’s state-owned oil company, Petroleos Mexicanos, entered a joint venture at the South Texas refinery in 1993, with each holding a 50 percent stake. Pemex began shutting down offshore production on Sunday in the Bay of Campeche, which was along the hurricane’s path.

About 80 percent of the 340,000 barrels of crude oil that are refined each day at Deer Park come from Mexico. Shell did not say how much it would crude oil it would reduce processing.

Pemex rigs remained shut down Wednesday afternoon, suspending a daily production of 2.7 million barrels of oil and 2.6 billion cubic feet of natural gas. However, the company said its offshore platforms and loading facilities should emerge without major damage.

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