| Deepwater Horizon’ rig in the Gulf of Mexico has resulted in oil hitting the US shoreline |
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 The explosion and subsequent sinking of BP/Transocean’s ‘Deepwater Horizon’ rig in the Gulf of Mexico has resulted in oil hitting the US shoreline.According to McQuilling Services, the US Gulf of Mexico is home to the majority of US PAD III (Alabama through New Mexico) refinery operations, accounting for 8.5 mill barrels per day of refining throughput, or 48% of total US crude runs. Major refiners contribute more than 7 mill barrels per day to PAD III distillation, sourcing much of their crude from tanker borne imports. While some of their vessels deliver cargoes direct into the Gulf’s ports, others lighten their crude onto smaller vessels from offshore anchorage sites. Frontline has said that as a result of the incident the single hull ban could be tightened. At present single hull tankers are allowed to call at LOOP and other discharge areas off the US coast until 2015. At least one lightering company has halted ship-to-ship transfers of crude oil off Pascagoula, Mississippi, a tanker company official said on Tuesday. "We're open everywhere but offshore Pascagoula, and people that do lightering there can easily shift to Southwest Pass," said an official from a major tanker company that serves Chevron Corp's 330,000 barrel per day Pascagoula refinery, talking to newswires. Shipping companies want to avoid the spill because they can be required to clean their vessels of any contamination before entering ports, sources said. However, the Pascagoula lightering zone is lightly used and does not account for a big share of lightering activity in the Gulf. The major offshore terminal at LOOP has not been affected thus far. But shipbrokers were warning of potential changes in traffic patterns in days to come, Reuters said. There could be some tanker re-routing seen soon, they said. Another reaction to the spill was that Aframax rates from the Caribbean to the US Gulf surged by up to 50% earlier this week. Stormy weather also helped to boost earnings to the area. “Some are either reluctant to go to the region, or reluctant to stay if they are already there,” a shipping source said, requesting anonymity. “The fears include getting stuck in the river or being required to have hulls cleaned, although they are being allowed through without cleaning at the moment,” he added talking to Reuters. It is thought that the US Coast Guard will keep the Mississippi River open at all costs, but may require traffic to pass inspections and potentially submit to hull cleaning. The USCG is establishing hull-cleaning stations in the region. 
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