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BP restarts U.S. refinery of Alberta oilsands crude after shutdown

BP Whiting
In this March 25, 2014 photo, a worker dumps soil into a bag in Whiting, Ind. as part of the clean up of an undetermined amount of crude oil that spilled into Lake Michigan near Chicago following a malfunction at BP's northwestern Indiana refinery. AP Photo/Sun-Times Media, Jim Karczewski)

CALGARY – BP says it has restarted operations at a major unit of a U.S. refinery that processes oilsands crude from Alberta after a malfunction earlier this month.

The forced shutdown of the 240,000-barrel-a-day crude distillation unit in Whiting, Ind., on Aug. 8 caused gasoline prices to spike across Western Canada.

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The closure also led to a wider discount on Canadian heavy crude, which dropped to more than US$20 below the North American benchmark price.

READ MORE: Western Canadian gas prices set to decrease after refinery outage spike, says analyst

BP says the Whiting restart is increasing the refinery’s fuel production as it ramps up output over time.

The resumption of operations comes a day after oil closed at a fresh six-year low of US$38.24 a barrel for the West Texas Intermediate benchmark crude after dropping $2.21 on the day.

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Analysts say many oilsands operations are producing at a loss at these prices.

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