BP (NYSE:BP) Refining Margins Lower in Fourth Quarter Says Company Economist

According to BP PLC's (BP) Chief Economist Christof Ruehl, refining margins for the company in the fourth quarter will drop because of the large amount of global oil inventory.

Ruehl said, "We have bloated OECD product stocks - the highest for at least 12 years - caused by an increase in crude runs over the last few quarters. Just when you thought there was a decent few weeks in terms of margins, the existing product overhang points to short-term pressure on margins."

Ruehl added that usually margins in refining are historically lower in the fourth quarter, with eight out of the last ten years experiencing that.

This is year is no different, as refiners raised production because of higher margins earlier in the year, but the demand hasn't met the supply, putting downward pressure on margins.

Problems in Europe's strategy of so-called clean and renewable fuels is a problem as well, with it causing refineries there to be much more costly and less competitive.

BP (NYSE:BP) Sued By Texas Over Refinery Pollution

The BP (NYSE:BP) refinery in Texas which killed 15 workers in 2005 continues to be an albatross around the neck of the oil giant, as it has been sued again by the state of Texas over pollution violations.

It doesn't help them at all to have this negative publicity in light of the progress they're finally achieving at the oil spill in the Gulf of Mexico.

This lawsuit is centered around a fire at the facility on April 6, when 500,000 pounds of pollutants were allegedly released into the air during a 40-day period.

Major elements of the case are the fire could have been prevented with proper maintenance, but probably more importantly, the pollutants could have been managed by shutting down the two units until repairs of the broken compressor were finished.

Texas Attorney General Greg Abbott said, "BP made very little attempt to minimize the emission of air contaminants caused by its actions, once again prioritizing profits over environmental compliance."

That determination was based around the decision of BP to restart not long after the fire.

Texas Emissions Violation a BP (NYSE:BP) Payback for Rejecting $25 Million Grant Request?

It was recently discovered that BP (NYSE:BP) had earlier this month rejected a request for a $25 million cleanup grant from the state of Texas to pay for cleaning up the tar balls on the coast.

BP instead said they would pay as they go with it, and not make a lump sum payment.

Here we are just a short time later listening to news that a BP Refinery is being investigated for allegedly releasing contaminants into the air. I wonder if they're $25 million in contaminants?

Allegedly, BP released up 500,000 pounds of pollution into the air from April 6 to May 16, but was referred by the Texas Commission on Environmental Quality on July 23. That was just after a heated exchange between Texas and BP over the proposed and rejected cleanup grant.