Obama Asks ConocoPhillips to Delay 45-Day Shutdown of Wood River Refinery to Prevent Gas Price Increase
Monday, September 26, 2005
Printable FormatFOR IMMEDIATE RELEASE
Obama Contact: Robert Gibbs or Tommy Vietor, (202) 228-5511
Illinois Contact: Julian Green, (312) 886-3506
Date: September 26, 2005
Obama Asks ConocoPhillips to Delay 45-Day Shutdown of Wood River Refinery to Prevent Gas Price Increase
WASHINGTON - In a letter to ConocoPhillips CEO James Mulva, U.S. Senator Barack Obama (D-IL) today requested that ConocoPhillips delay a scheduled 45-day maintenance shutdown of the Wood River Refinery in Roxana, Illinois to ensure that a decrease in fuel supply doesn't exacerbate already high gas prices.
"This shutdown could exacerbate the problems with reduced refining capacity caused by recent Hurricanes Katrina and Rita," said Obama. "Although initial indications are that Hurricane Rita did not cause significant additional damage to Gulf Coast refineries, many refineries were shut down prior to the hurricane, and it is expected to take one to two weeks before these plants can begin processing again."
On September 2, 2005, the Alton Telegraph reported that the Wood River Refinery had been planning to shut down for 45 days in mid-September for maintenance. This refinery is the tenth largest in the country and processes 306,000 barrels of crude oil per day, sending gasoline all over the Midwest. Obama said that shutting down this facility when U.S. refining capacity is already diminished could increase already high gasoline and diesel fuel prices.
"In light of the uncertain situation in the Gulf Coast, I urge ConocoPhillips to consider delaying the shutdown of this refinery, unless the shutdown is absolutely necessary for safety reasons," said Obama. "President Bush recently urged U.S. refiners to postpone all scheduled maintenance for four to six weeks. I hope ConocoPhillips will heed the President's suggestion as long as any postponement does not compromise safety."
Obama requested that ConocoPhillips notify him by September 29, 2005, as to whether the facility will delay its scheduled maintenance.
September 26, 2005
James Mulva, CEO
ConocoPhillips
600 North Dairy Ashford (77079-1175)
P.O. Box 2197
Houston, TX 77252-2197
Dear Mr. Mulva:
I am writing to express my serious concerns about the planned shutdown of the ConocoPhillips Wood River Refinery and its implications for gasoline supply at a time of record high prices.
According to a September 2, 2005, story in the Alton Telegraph, the Wood River Refinery had been planning to shut down for 45 days in mid-September for maintenance. My staff has since learned that this shutdown date has been moved to September 29. This refinery, which is the tenth largest in the country, processes 306,000 barrels of crude oil per day and sends gasoline all over the Midwest.
I understand that refineries are required to shut down once or twice a year for maintenance, often in September or October. Although the shutdown of the Wood River facility apparently has been planned for a while, this shutdown could exacerbate the problems with reduced refining capacity caused by Hurricane Katrina. Although initial indications are that Hurricane Rita did not cause significant additional damage to Gulf Coast refineries, many refineries were shut down prior to the hurricane, and it is expected to take one to two weeks before these plants can begin processing again.
Numerous constituents have expressed their concern that the shutdown of the Wood River Refinery could cause gas prices to go even higher at a time when gas prices are already causing significant hardships for average Americans. In a few months, the price of home heating oil and natural gas will likely reach new heights as well.
In light of the uncertain situation in the Gulf Coast, I urge ConocoPhillips to consider delaying the shutdown of this refinery, unless the shutdown is absolutely necessary for safety reasons. Indeed, President Bush recently urged U.S. refiners to postpone all scheduled maintenance for four to six weeks. I hope ConocoPhillips will heed the President's suggestion as long as any postponement does not compromise safety.
I request that you notify me by September 29, 2005, as to whether the Wood River maintenance will be delayed and if so, by how many weeks. If ConocoPhillips is determined to go forward with the maintenance, I request that you provide me with an explanation for this decision.
Thank you for your prompt attention to this request.
Sincerely,
Barack Obama
United States Senator