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Report: Chevron looking to expand refining operations in US Gulf

Chevron Corp. is looking to expand its refinery operations along the U.S. Gulf Coast in order to process crude oil from its Permian Basin operations, according to an Oct. 9 Reuters article, citing a senior executive with the company.

The company would like to have refining operations on the Houston Ship Channel to complement its existing refinery in Mississippi, Chevron head of downstream and chemicals Pierre Breber told Reuters.

Most of Chevron's existing refineries are located in California.

In March, executives announced plans to expand Chevron's upstream fleet, ramp production in the Permian and continue to improve cash flow. Chevron's Permian shale and tight production in the second quarter was 270,000 barrels of oil equivalent per day, up about 92,000 boe/d, or 50%, from the same quarter last year.

By expanding its refining operations to Houston, Chevron would be able to process Permian crude closer to where it is produced. The Houston Ship Channel is one of the busiest U.S. seaports and is home to many refineries.