Almost all Gulf oil production shuts down for Hurr
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Posted On: 08/29/2021 10:35:38 PM
Almost all Gulf oil production shuts down for Hurricane Ida.
Will gas prices be affected?
Short answer, not much....as of the moment.
Keith Magill
The Courier
https://www.houmatoday.com/story/business/202...639284001/
More than 90% of the Gulf of Mexico’s oil production was shut down Saturday as Hurricane Ida churned through the western Gulf of Mexico toward an expected landfall Sunday evening near Morgan City.
About 85% of the Gulf’s natural gas production had also been halted by midday, according to the federal Bureau of Safety and Environmental Enforcement.
Workers had been evacuated from half of the 560 production platforms in the Gulf, according to the bureau.
Hundreds of Houma-Thibodaux and south Louisiana residents work on rigs and platforms in the Gulf. Platforms are the stationary structures offshore from which oil and natural gas are produced. Drilling rigs, some of which are able to move to different locations, are used to explore for oil and gas.
Workers had been evacuated from all 11 stationary rigs, the agency said. Another 11, or nearly three fourths, of the 15 moveable rigs have relocated out of the storm’s path as a precaution.
Hurricane Ida:Governor John Bel Edwards: Ida 'One of the strongest storms to hit Louisiana since at least the 1850s'
"After the storm has passed, facilities will be inspected," the agency said. "Once all standard checks have been completed, production from undamaged facilities will be brought back online immediately. Facilities sustaining damage may take longer to bring back online."
The Gulf produces about 15% of the nation’s oil and 5% of its natural gas, according to the U.S. Energy Information Administration. That amounts to about 1.85 million barrels of oil and 2.7 billion cubic feet of natural gas per day.
Almost all of the Gulf’s rigs and platforms are serviced by boats that use Port Fourchon in south Lafourche as a base of operations. The port, just east of Ida's projected landfall, was under a mandatory evacuation starting at 5 a.m. Saturday.
Officials said Saturday via Facebook that they expect a Category 4 Ida to drop 10-15 inches of rain at the port Sunday through Tuesday. A 10-15 foot storm surge was expected in the area, which is outside Lafourche Parish's hurricane-protection levee.
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The state Transportation Department suspended tolls on the Leeville Bridge along La. 1 to help people evacuate from the port as well as Grand Isle, a community of about 1,400 permanent residents.
La. 1, the only road to and from the port and the island, was open Saturday but routinely floods during storms and high tides. The South Lafourche Levee District closed a floodgate that crosses La. 1 at the Leon Theriot Lock in Golden Meadow at 6 tonight in conjunction with a parish curfew.
"No traffic will be allowed to pass this area until further notice," the district said in a notice this evening.
About half of U.S. refinery capacity is also located along the Gulf Coast, stretching roughly from New Orleans to Houston.
Refineries in Louisiana process about 3.5 million barrels of crude oil a day, federal figures show. That's about 40% of the Gulf Coast's total, with Texas accounting for the rest. Louisiana accounts for about 19% of the nation's overall refinery capacity.
Whether Ida's effects on the oil and gas industry affect pump prices remains an open question. Analysts say some of it will depend on how severely Ida might damage the refineries and how long it takes them to come back online.
Platts Analytics said about 4.4 million barrels a day of refinery capacity was in the storm's path, mostly in Louisiana. The facilities produce about 1.5 million barrels of gasoline a day.
That's a small fraction of the 8 million barrels -- 337 million gallons -- the U.S. consumed per day last year, when demand was lower than normal because of the global COVID-19 pandemic.
"Hurricane Ida is expected to come ashore along the same path as other storms, which did extensive damage to USGC refining and petrochemical facilities," Platts said Saturday. "Many plants have been hardened against hurricanes, but disruptions in operations are still very likely due to flooding, power outages and personnel dislocations."
Patrick De Haan, head of petroleum analysis for GasBuddy, said despite a surge in gasoline demand from Louisiana motorists fleeing Ida on Friday, overall demand across the U.S. was down 1.8% from the previous Friday and 2.3% from the average over the past four Fridays.
"While a small nationwide gas price hike could happen, it's unlikely to lead ... to much beyond a nickel or dime, and since markets are closed over the weekend, this would be an impact felt mid-next week," De Haan said Saturday on Twitter.
— Executive Editor Keith Magill can be reached at 857-2201 or keith.magill@houmatoday.com. Follow him on Twitter @CourierEditor.
Will gas prices be affected?
Short answer, not much....as of the moment.
Keith Magill
The Courier
https://www.houmatoday.com/story/business/202...639284001/
More than 90% of the Gulf of Mexico’s oil production was shut down Saturday as Hurricane Ida churned through the western Gulf of Mexico toward an expected landfall Sunday evening near Morgan City.
About 85% of the Gulf’s natural gas production had also been halted by midday, according to the federal Bureau of Safety and Environmental Enforcement.
Workers had been evacuated from half of the 560 production platforms in the Gulf, according to the bureau.
Hundreds of Houma-Thibodaux and south Louisiana residents work on rigs and platforms in the Gulf. Platforms are the stationary structures offshore from which oil and natural gas are produced. Drilling rigs, some of which are able to move to different locations, are used to explore for oil and gas.
Workers had been evacuated from all 11 stationary rigs, the agency said. Another 11, or nearly three fourths, of the 15 moveable rigs have relocated out of the storm’s path as a precaution.
Hurricane Ida:Governor John Bel Edwards: Ida 'One of the strongest storms to hit Louisiana since at least the 1850s'
"After the storm has passed, facilities will be inspected," the agency said. "Once all standard checks have been completed, production from undamaged facilities will be brought back online immediately. Facilities sustaining damage may take longer to bring back online."
The Gulf produces about 15% of the nation’s oil and 5% of its natural gas, according to the U.S. Energy Information Administration. That amounts to about 1.85 million barrels of oil and 2.7 billion cubic feet of natural gas per day.
Almost all of the Gulf’s rigs and platforms are serviced by boats that use Port Fourchon in south Lafourche as a base of operations. The port, just east of Ida's projected landfall, was under a mandatory evacuation starting at 5 a.m. Saturday.
Officials said Saturday via Facebook that they expect a Category 4 Ida to drop 10-15 inches of rain at the port Sunday through Tuesday. A 10-15 foot storm surge was expected in the area, which is outside Lafourche Parish's hurricane-protection levee.
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Fuel your hometown passion and plug into the stories that define it.
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The state Transportation Department suspended tolls on the Leeville Bridge along La. 1 to help people evacuate from the port as well as Grand Isle, a community of about 1,400 permanent residents.
La. 1, the only road to and from the port and the island, was open Saturday but routinely floods during storms and high tides. The South Lafourche Levee District closed a floodgate that crosses La. 1 at the Leon Theriot Lock in Golden Meadow at 6 tonight in conjunction with a parish curfew.
"No traffic will be allowed to pass this area until further notice," the district said in a notice this evening.
About half of U.S. refinery capacity is also located along the Gulf Coast, stretching roughly from New Orleans to Houston.
Refineries in Louisiana process about 3.5 million barrels of crude oil a day, federal figures show. That's about 40% of the Gulf Coast's total, with Texas accounting for the rest. Louisiana accounts for about 19% of the nation's overall refinery capacity.
Whether Ida's effects on the oil and gas industry affect pump prices remains an open question. Analysts say some of it will depend on how severely Ida might damage the refineries and how long it takes them to come back online.
Platts Analytics said about 4.4 million barrels a day of refinery capacity was in the storm's path, mostly in Louisiana. The facilities produce about 1.5 million barrels of gasoline a day.
That's a small fraction of the 8 million barrels -- 337 million gallons -- the U.S. consumed per day last year, when demand was lower than normal because of the global COVID-19 pandemic.
"Hurricane Ida is expected to come ashore along the same path as other storms, which did extensive damage to USGC refining and petrochemical facilities," Platts said Saturday. "Many plants have been hardened against hurricanes, but disruptions in operations are still very likely due to flooding, power outages and personnel dislocations."
Patrick De Haan, head of petroleum analysis for GasBuddy, said despite a surge in gasoline demand from Louisiana motorists fleeing Ida on Friday, overall demand across the U.S. was down 1.8% from the previous Friday and 2.3% from the average over the past four Fridays.
"While a small nationwide gas price hike could happen, it's unlikely to lead ... to much beyond a nickel or dime, and since markets are closed over the weekend, this would be an impact felt mid-next week," De Haan said Saturday on Twitter.
— Executive Editor Keith Magill can be reached at 857-2201 or keith.magill@houmatoday.com. Follow him on Twitter @CourierEditor.
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