The New World of Tumult
Here's the news today: Russian security officers have again raided BP's offices in Moscow. Nigeria has ordered Exxon and Shell to pay up $1.9 billion of their oil revenues. Exxon's Rex Tillerson is under mounting pressure to give up one of his titles, that of company chairman. And oil futures brushed up against $140 a barrel.Welcome to the new world of energy tumult.
Taken separately, these events don't necessarily seem new -- the petro-powers have been flexing their muscles for some time; Exxon has put down previous attempts to appoint an independent chairman; and the surge in oil prices has seemed inexorable.
Yet the last two items merit attention.
The pressure on Exxon -- renown for going its own way regardless of attempts to influence it -- can no longer be put down to fringe dissidents. The more serious situation began with a push by the Rockefellers for an independent chairman and more attention to research on renewable fuels. And now, a growing number of investors are supporting the Rockefellers publicly ahead of next week's annual shareholder meeting in Dallas. Here is a piece about British investors posted by my colleagues at Business Week.
But today's $9.50 rise in oil futures, to $139.50 a barrel, resembles a panic. It looks like a tipping point in market sentiment about so-called peak oil -- traders seem convinced that indeed the tightness in world supply is a chronic problem, and not something to be overcome by added exploration and drilling.
Among the men of Big Oil, one of the most reasonable assessments is delivered by Christophe de Margerie, the chairman of France's Total. De Margerie says that the world has plenty of oil, but not the financial and technical means to deliver much more than it currently does to the market.
So the tightness in world supplies -- the fundamental reason behind this year's incredible runup in prices, and by extension the emboldened behavior of petro-powers like Russia and Nigeria -- is not going to lift any time soon, short of some economic debacle, or a dramatic public shift to the bicycle.
Photo: pingnews
Rights: Creative Commons
1 Comments:
Junction Intl Traders Inc.
3772 Fleet Ave South Plain Field NJ 07080
Ph: 516 707 5000
www.junctiontrader .com
Dear Sir:
We are an International Import / Export Physical Commodity Traders.
JUNCTION INTL TRADERS INC is a trading company in New York (USA) and it specializing in all kinds of Commodity & industrial good.We have more than 500 clients (local and International) all over the world. Weare also official traders of Govt and Non-Govt industries.
We work DIRECTLY with Sellers/Owners- and with Seller's Mandates all over the world
For Sale 45,000 BPD Oil
Refinery with 171 .8 acres of property at a
bargain price of US$21M
Golden opportunity to purchase existing oil refinery situated on 171 .8 acres of landlocated 50 miles from Houston, Texas.
The refinery can produce 45,000 bpd Gasoline (3grades), Jet Fuel, Diesel .
The facility is situated on 171 .8 acres of property out of which approximately 120acres of land are undeveloped and can be utilized for expansion to build a largerrefinery .
Refinery was shut down in 1986 due to the severe downturn in oil industry knowas "Oil Bust of 86" . After shut down refinery provided storage and blendingservices for a while, but never put back into refining operation .
The culmination of the years that have passed and circumstances have now
provided a "Golden Opportunity" to recapture refining facility at fraction of the
current value .
The facility has a number of "Down Stream Units" designed to produce maximum yield of Gasoline, Jet Fuel, and Diesel . These Units are :
1 . 5700 B/D High Pressure Platformer
2 . 2500 Low Pressure Platformer
3 . 3,000 B/D Hydrocraker
4. 10,000 B/D Naphta Desulferizer
5 . 1200 Udex Unit
6 . 500 B/D Hexane Unit
The refinery also has 35 tanks, which comprise a total storage capacity of 910,000barrels. The refinery has current value of $40 .5 Million in its current "idle"condition .
The refinery located in close proximity to two crude oil pipelines that can deliverup to 120,000 BPD as well as three production pipelines that can deliver product asfar away as Ohio, Chicago and New York. These pipelines in addition to the company's 30 miles pipelines that is connected to……………
Environmental permits are available for the refinery based on EPA regulation standards for compliance to meet environmental laws.
Delivery of oil
The delivery of crude oil can be made on crude oil pipelines from oil producing
sources throughout the continental USA, Canada and Mexico then shipped directlyto the refinery's oil storage tank farm . The crude oil also can be off-loaded innearby receiving ports, with carrying capacity supertankers from 500,000 bbls to2,500,000 bbls. The ports are deep-sea ocean facilities to accommodate the supertankers from all over the world, and include the nearby ports of Port Arthur and Port Neches located in the Gulf of Mexico .
The off-loading of crude can then be sending directly by pipeline from the port tothe oil storage tank farm of mentioned refinery .
Refinery production units can be refurbished units to minimize cost . The estimatedcost to bring the refinery operation into full production of 45,000 BPD would be inthe vicinity between $50M to $65M . Estimates of a construction cost are available from a major refinery construction companies to make this refinery a turnkey
operation .
To put the refinery into full operation and production of 45,000 BPD will take
between 9 to 12 month. Once in full operation refinery shall produce profit ranging from $75M to $160M per year depending on a crack spread .
The project margins are realistic and are based on cost of oil in the year of 2006
Below is projected profits at different crack spreads for different weeks and month of 2006
2
Projected Profit Minimum
(Six-Month Contract)
Crack Spread/$6.55 BBL/WK of 5-20-06
45,000 BPD x 95 .5% throughput = 43,000 BPD
- 1 % Loss
42,570 BPD (Finished Product)
x $6 .55 Crack-Spread
$278,833 .50 a day
-$34,400.00 refg.cost/day ($0 .80 Bbl)
$244,433 .50 day ($5 .74 Bbl)
x 30 days
$7,333,005 .00 Month
x 12 Month
$87,996,060 year (Net/Profit)
3
Projected ProfitMaximum
(One-Month Contract)
Crack-Spread /$11 .08 Bbl/wk 5-20-06
45,000 BPD x 95 .5% throughput = 43,000 BPD
- 1 % Loss
42,570 BPD (Finished Product)
x $11 .08 Crack-Spread
$471,675 .60 day ($10 .27 Bbl)
x 3 0 days
$13,118,268 .00 Month
x 12 Month
$157,459,216 year (Net/Profit)
4
Projected Profit vs Operating Cost
Light Sweet Crude Operation
Louisiana Sweet (50%)/ (50%) Texas Upper Gulf-Coast
45,000 @ 95.5% Thruput
43,000 BPD
Typical Week
Yld Product Prod . / Price/ Gross Profit
18 .12 Gasoline (89 oct)= $7,791 .6 Bbl/day @ $57 .48 Bbl = $447,861 .16 day
34 .84 Jet/Kero = $14,981 .2 Bbl/day @ $58 .45 Bbl = $875,651 .14 day
26 .34 Diesel = 11,326 .2 Bbl/day @$56.55 Bbl = $640,496 .61 day
19.70 #6 Fuel Oil = 8,471 .0 Bbl/day @ $35 .50 Bbl = $300,730 .50 day
Total 99.0 = 42570.0 Bbl/day @ $53.20 Bbl = $2,264,729.41 day
(43,000.0 Bbl/day $52 .67 Bbl)
Less Crude Cost = 43,000 .0 Bbl/day @ $41 .63 Bbl = $1,790,090 .00 day
$474,639.41 day
Less Refining Cost = 43,000 Bbl/day @ $0 .80 Bbl = $34,400 .00 day
5
Projected Profit
Maximum
(Six Month Contract)
' 1
1 1
, 1
F I isI_
45,000 bbls/day
n- o loss
44.550 bbls/day (finished product)
X $S 9.23 crksprd_
$ 411,196.50 day
- 54,000.00 refg.cost/day ($1 .20 bbl)
$ 357,196.50 day ($8.017 bbl)($7 .937 (~,D 45k,b/d)
x -..30 days
$10,715,895 .00 month
x~ _.., 12 n Qntha
$128,590,740 year (net profit)
Less Add. 33% Rcfg Cost ($0.40 bbl) S 6,480.000 year ($1 .60 bbl)
$ 122,110,740 year (net profit)
Minimum
(One Month Contract)
C rack_SnreadLS6.54 bbl/w .knf 9-08-06
45,000 bblslday
1 % LQW
44,550 bbl-,/day (finished product)
x$ 54 cr sprd
291,357_00 day
54,0.
Qrefg.cost/day ($1 .20 bbl)
$ 237,357 .00 day ($5 .327 bbl)($5 .274 @ 45k,b/d)
x 30 days
$ 7,120,710 .00 month
x
12 nmdm
$ 85,448,520 year (net/profit)
Less Add. 33% Rcfg Cost ($0.40 bbl) $ 6;0.0.DQ year ($1,610 bbl)
$ 78,968,520 year (net profit)
Source: Oil & Gas Journal (Sept . 18, 2006 Issue)
Potential Profit vs operating .Cost
Light-Sweet Crude Operation
45,000 bbls/day
week of 9-Q&-061
Less Crude Cost
= 45,000 .0 bblslday @ $59 .50 bbl = $.2,6,77.500.00 day
$ 218,494.48 day
Less l;Mining Cost
= 45,000 .0 bblslday @ $ 1 .20 bb] = $ 54.000Z day
Total Net Profit/Day
($ 3.65 bbl)
$ 164,494 .48 day
x 0 days
Total Net Profit/Month
$ 4,934,834.40 mo
x 12 months.
Total Net Profit/Year
$ 59,218,012.00 yr
*(Less Additional 33% Refining Costs ($0 .40 bbl)=$1 .60 bbl)
._-6,480.0Q0.00 yr
Total Net Proftl'Year
($ 3.25 bbl) $ 52,738,012.00 yr
Source :
Oil & Gas Journal (Sept. 18, 2006 issue (crude prices)) (Sept . 25, 2006 issue (product prices))
%YJd Product Probe Grogs Profit
29.63 Gasoline (89 oct) = 13,333 .5 bbls/day @ $67 .66 bbl = $ 902,144 .61 day
23 .33 Jet/Kero = 10.498 .5 bblslday @ $64.41 bbl = $ 676,208.38 day
26 .34 Diesel = 11,853 .0 bbls/day @ $75 .43 bbl = $ 894,071 .79 day
19.70 #6 Fuel Oil = _$,,865.0 bblslday, @ $47 .78 bb] = $ 423 .569 .70 day
99.00 44,500.0 bblslday ($65.00 bbl) $ 2,895,994.48 day
(45,000.0 bbls/day $64.35 bbl)
REFINERY PLOT PLAN
a~
OR
No 1
Pkant
H, P .
P~ a tUcxme
RI oft-*
WS4 i hokoft
Liquid
Energy
Leased to
4erichem
F",~Y771 2 ork-A
i
lash U6kaeg
Existing Processing Units
Process Unit BPSP Comments
Naphtha Desulfurization 10,000 450 PSIG, hydrotreats the feed to
both HP and LP Platformers
High Pressure Platformer 5,700 600 PSIG; four-reactor semi-regenunit, 90 RON clear _
Low Pressure Platformer 2,500 200 PSIG ; four-reactor semi-regen unit, reformate to Udex unit
Hydrocracker 3,000 1600 PSIG ; Isomax unit; expandableto 4,500 _BPD
Udex Unit 1,200 Fed from LP Platformer, to produce400 BPD Bzenene
Hexane Unit 500 Includes both fractionation andhydrotreating units
Unit _ Towers Reactors Drums Excl t hers_ Pumps Heaters CvnrPressurs
- DS Unit 1 1 1 5
6
1
2
Isomax Unit 3 2 10 14
24
2
3
LP Platformer 1 4 5 10
8
5
1
Hp Platformer I 4 5 7
4
1
Hexane 2 1 1 9
3
1
0
Hydrotreater
Udex Unit 4 0 15 14
30
REFINERY PLOT PLAN
lee]
4 .
C . t3 i3e'.id t ILVATE
010CONTra i 2c?Ca
F Low&i*SS . fCO9rmP p
1}t4i4 Press, r.~~orme
H , rh C+-t.X V it
TOTAL -.STORAGE 910,000
REFINERY TANKAGE
SHELL CAPACITY
TANK HBLS SUB TOTAL SERVICE
109 100,000 CRUDE
195 100,000 CRUDE
91 100,000 CRUCE
300,000
102 50,000 ATM_ RESID
101 50,000 VACUUM GAS OIL
100,000
103 50,000 ATM. GAS OIL
104 50,000 VACUUM GAS OIL
100,000
106 50,000 JET
45 10,000 JET
49 5,000 JET
65,000
50 50,000 DIESEL
54 10,000 DIESEL
55 10,000 DIESEL
70,000
108 50,000 NAPTHA
107 50,000 NAPTHA
41 10,000 H.P_ REFORMER CHARGE
42 10,000 H .P. REFORMER CHARGE
33 5,000 L.P. REFORMER CHARGE
72 10,000 L .P. PLATFORMATE
44 5,000 L.S.R.GASOLINE
40 10,000 L.S.R. GASOLINE
34 5,000 L.P_ REFORMER CHARGE
35 5,000 L.P_ REFORMER CHARGE
160,000
46 10,000 FINISHED GASOLINE
47 10,000 FINISHED GASOLINE
51 10,000 UNFINISHED GASOLINE
52 40,000 UNFINISHED GASOLINE
67 20,000 UNFINISHED GASOLINE
90,000
36 5,000 SLOP OIL
37 5,000 SLOP OIL
10,000
32 5,000 ISOMAX FEED
38 5,000 ISOMAX FEED
43 5,000 ISOMAX FEED
15,000
39 5,000 RAFFINATE BLENDSTOCK
Storage Opreratin
910,000 bbls x $0 .35 monthly "Shell Storage"fee = $ 318,500 x 12 mos . = $3,822,000 .00
x $0.10 1st refill "Throughput" fee = $. 91,000 x 12 mos. = $1.092M.00
$409,500
$4,914,000.00 yr
x $0.10 2nd refill "Throughput" fee = $ 91.000 x 12 mos = $ i,QU.000.00 $500,500
$ 6,006,000.00 yr
x $0.10 3rd refill "Throughput" fee = $ 91.001 x 12 mos = $1 .092,000.00
$591,500
$7,09S,000 .00 yr
TOTAL P .09
Refinery Value
For additional information please contact :
(Current idle condition)
5700 B/D High Pressure Platformer
2500 Low Pressure Platformer
3,000 B/D Hydrocraker
10,000 B/D Naphta Desulferizer
1200 Udex Unit
500 B/D Hexane Unit
Sub Total Value $23,000,000
Tankage 910-,000 bbls $12,000,000
Pipeline (10 in x 30 miles) $3,000,000
Other Offsite (Electrical, Utilities,
Pipelines, etc
Land (171 .883 acres with annual
Real Estate tax of $13,850) $500,000
Total Refinery Value $40,500,000
Crude oil storage tank farm for 1,000,000 bbls .
Refiner)
Refinery equipment to produce Gasoline (3 grades),
Jet fuel, Diesel .
M Waheed Jadoon
Junction Intl Traders Inc.
3772 fleet Ave South Plain Field
NJ 07080 Phone: 516 707 5000
Email: WAJADOON@YAHOO.COM
JUNCTION_TRADER@YAHOO.COM
www.junctiontrader.com
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