Midwest Fuel Shortage
Exxon's Joliet Refinery Remains Offline, Threatening Midwest Diesel and Gasoline Supplies
Anonymous
Exxon Mobil’s 275,000-barrel-per-day Joliet refinery in Illinois remains offline after a power outage triggered a safety flare, with the company attributing the outage to ComEd’s electrical lines and saying power has since been restored. Floodwater also overwhelmed a pump, prompting a cleanup operation with a containment boom, while Exxon has not confirmed whether the flooding was related to the outage. The refinery produces about 11 million gallons of gasoline and diesel daily and is a major supplier to the Midwest, so a prolonged shutdown could further tighten regional fuel supplies. The disruption comes as U.S. diesel prices exceed $6 a gallon amid broader global refining and supply pressures linked to Middle East conflict and attacks on Russian refineries. Analysts are watching for a restart because continued downtime could push Midwest gasoline and diesel prices higher, though the timing of a full return to production remains uncertain.
Key Points
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Industry monitor IIR Energy had expected the Joliet refinery to return to normal service by the end of the week, but Wood Mackenzie still listed the facility as offline on Thursday.
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The refinery reportedly flared again on Wednesday, according to Patrick De Haan, head of petroleum analysis at GasBuddy, indicating continuing operational activity after the initial shutdown.
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Joliet accounts for roughly 6% of Midwest refining capacity and about 1.5% of U.S. refining capacity, underscoring its regional importance beyond its stated daily fuel output.
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The refinery primarily processes Canadian crude, and analysts linked the outage to a fresh increase in Alberta fuel prices, with pump prices in Edmonton and Calgary rising above 1.80 Canadian dollars per liter.
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GasBuddy's Patrick De Haan said Great Lakes spot diesel prices had reached $240 per barrel—the highest in the country—and warned that gasoline prices in Ohio, Wisconsin and Indiana faced moderate-to-large increases, with Illinois and Michigan potentially exceeding $5 per gallon.
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