Energy Business Review: Chevron FIRE Implications, Statoil’s Shtokman DECISION

The fire at Chevron Corporation’s (NYSE:CVX) Richmond refinery in Northern California was put out by midday, but the damage and the likely outage of some or all of the 245,000 barrels per day facility could of course drive gasoline prices higher for consumers in the western states, as it accounts for almost 10 percent of the refining capacity in that area. Not unexpectedly, shares of Tesoro Corporation (NYSE:TSO) picked up as Tudor Pickering analysts commented that the fire could benefit the firm.

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Norway’s Statoil ASA (NYSE:STO) continues to mull its options connected with the huge Shtokman gas project, subsequent to reports in the Russian media that it had pulled out of development. The project is operated by Russia’s Gazprom, and Statoil holds a 24 percent interest, along with Total S.A. (NYSE:TOT) with 25 percent. Royal Dutch Shell (RDS.A) might be ready to join the project, perhaps replacing Statoil.

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