Sixth District Energy Updates: Hurricane Gustav
September 3, 2008
Preliminary reports indicate that damage caused by Hurricane Gustav appears
to be minimal. Full reports on the extent of the damage will not be ready until
later this week.
||Extensive damages to electricity transmission systems have been
reported. In Louisiana, 49 percent of customers remained without power,
including New Orleans and Baton Rouge areas as of 3 p.m. on September 2.
||Electricity outages are preventing some refineries and pipelines
from resuming operations. |
|Oil and Gas Production|
||Despite indications that there was no significant damage to
offshore platforms during Gustav, it will take several days before production is
resumed. As of September 2, the Minerals Management Service reported 100 percent
of crude production and more than 95 percent of natural gas remained shut in.
||It will likely take two weeks before oil and natural gas
production resumes at full capacity, Interior Secretary Dirk Kempthorne said
||Although a number of refineries remain shut down, early checks
indicate that damage was limited. |
||Numerous refineries remain without power in the District,
including ExxonMobil’s Baton Rouge plant, the second-largest U.S. refinery.
||Because the storm shut down key waterways and cut off refiners’
supply of oil, the Bush administration agreed to release supplies from the
Strategic Petroleum Reserve as requested by Citgo to allow operations to
continue. ExxonMobil and Shell Oil refineries are still considering their
||As of 3 p.m. on Tuesday, 13 refiners were shut down, totaling 2.5
million barrels per day of capacity. Ten refineries in the Gulf Coast region
also reduced runs. |
|Ports and Pipelines|
||According to the Department of Energy, most ports were still
closed as of Tuesday afternoon. |
||Port Fourchon, the key terminal for tankers bringing imported oil
to the United States, remained closed as of Sept. 3. The port experienced some
flooding Monday morning. Damage assessments are currently underway. |
||The storm passed directly over the Louisiana Offshore Oil Port
(LOOP), which handles 10 percent of U.S. oil imports and is the only U.S.
facility capable of offloading the largest oil tankers. According to LOOP
personnel, the company is currently performing damage assessments. |
||The Capline and LoCap crude lines and Centennial pipeline remain
shut down. The Colonial and Plantation pipelines, which supply the East Coast
with refined products, are both operating at reduced rates.