PwC’s Morrison Says Refineries in Texas Are Okay for Now

The video discusses the impact of a storm on the US fuel-making capacity, with over 10% affected. Reid Morrison from PwC explains the preventive shutdowns of refineries and the ongoing movement of refined products through pipelines. The energy sector's flexibility is highlighted, noting that current inventories can handle a short pause, but prolonged disruptions pose logistical challenges. The restoration of pipelines depends on electrical systems and inspections, with a typical cycle of 8 to 15 days.

What percentage of US fuel-making capacity was affected by the storm?

• 5%

• 10%

• 15%

• 20%

Why is the current time considered fortunate for the energy sector?

• Weather conditions are stable

• There is less demand for fuel

• Inventories are built up during this period

• Refineries are at full capacity

What is a major challenge if the production pause extends beyond a few weeks?

• Lack of storage facilities

• Shortage of skilled labor

• Logistics of crude oil and refined products

• Increased fuel prices

What is crucial for bringing back the pipelines after a shutdown?

• Hiring more staff

• Reducing fuel consumption

• Increasing fuel prices

• Inspecting electrical systems and compressor stations

How long does it typically take to restart pipeline operations after inspections?

• 3 to 5 days

• 15 to 20 days

• 5 to 7 days

• 8 to 15 days