US Refinery Maintenance Season to Impact 2.5 Million Barrels a Day
The fall refinery maintenance season in the US is expected to be the heaviest since before the Covid-19 pandemic, with nearly 2.5 million barrels a day of refining capacity going offline for maintenance from September through December. This represents an 11% increase compared to the same period last year. The packed schedule is a result of repairs on units affected by unplanned leaks, fires, and the strain of operating during a hot summer. Refiners are also addressing a backlog of turnarounds that were delayed to save costs during the pandemic. The first quarter of 2024 is projected to be the heaviest maintenance season ever, with deferred work and regularly scheduled turnarounds. Refiners may face a race to secure available contractors. The maintenance season is necessary to ensure the smooth operation of refineries and prevent prolonged shutdowns.
Implications of the US Refinery Maintenance Season on New Businesses
The upcoming fall refinery maintenance season in the US, expected to be the heaviest since the pre-Covid-19 era, could have significant implications for new businesses, particularly those in the energy sector. With nearly 2.5 million barrels a day of refining capacity set to go offline for maintenance from September through December, there could be a potential impact on energy supply and prices.
Impact on Energy Supply and Prices
The anticipated increase in maintenance activities could lead to a temporary reduction in the supply of refined petroleum products. This could result in higher prices, affecting businesses that rely heavily on these products. New businesses in the energy sector need to factor this into their strategic planning and risk management.
Opportunities for Contractors
The heavy maintenance season could also create opportunities for contractors. With refiners likely to face a race to secure available contractors, new businesses offering maintenance services could find a surge in demand for their services.
Importance of Maintenance
The maintenance season underscores the importance of regular maintenance in ensuring the smooth operation of refineries and preventing prolonged shutdowns. This is a valuable lesson for new businesses in any sector, highlighting the need for regular maintenance to ensure operational efficiency and prevent costly disruptions.
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