ORLEN Signs Deal with Poland's National Food Industry Group

ORLEN Spó?ka Akcyjna, a Polish oil refining and distribution company, has signed a deal with the National Food Industry Group. The deal aims to strengthen the company's position in the Polish market. ORLEN specializes in refining and distribution of oil products, with net sales broken down into various activities such as natural gas production, crude oil refining, and distribution of petroleum products. The company operates primarily in Poland, with a smaller presence in Germany, the Czech Republic, and the Baltic states.

Chevron's recent offshore well start-up has led to zinc contamination in Mars crude, causing a tight crude oil supply in the Gulf Coast refining hub and prompting the U.S. government to release barrels from its emergency stockpile. The Department of Energy (DOE) authorized the exchange of oil to maintain stable regional supply of transportation fuels. Exxon Mobil, facing disruptions in its Baton Rouge refinery, requested barrels from the Strategic Petroleum Reserve (SPR), which the DOE authorized.

The Mars crude stream, which supplies about 575,000 barrels per day of oil to the Gulf Coast, has seen a 15-cent premium over U.S. crude prices at the Cushing, Oklahoma, hub [1]. The contamination issue has led to operational challenges for refineries, which are typically configured to run specific crude grades for optimal yields of different fuels. Exxon Mobil has indicated it will not buy the Mars crude oil grade until the zinc contamination issue is resolved [1].

The DOE has agreed to provide up to 1 million barrels of crude oil from the SPR to Exxon Mobil to support the restoration of refinery operations [2]. Chevron is actively working to resolve the contamination issue and does not expect it to impact current production guidance [3]. The company has pinpointed a likely source for the alterations in the Mars crude oil composition, linking it to the initiation of a new well [3].

The tight supply of crude oil and the zinc contamination issue underscore the importance of the U.S. Gulf Coast as a key refining hub. The DOE's exchange of oil with Exxon Mobil is part of broader efforts to maintain stable regional supply of transportation fuels across Louisiana and the broader Gulf Coast [2].

References:
[1] https://uk.finance.yahoo.com/news/chevron-says-offshore-well-start-161325893.html
[2] https://www.marketwatch.com/story/department-of-energy-agrees-to-crude-exchange-with-exxon-mobil-554ab801
[3] https://www.gurufocus.com/news/2972933/chevron-cvx-addresses-mars-crude-composition-changes-cvx-stock-news