Sixth District Energy Updates

September 11, 2008

The Federal Reserve Bank of Atlanta's Research Department produces updates on the impact of recent tropical cyclone activity on the Gulf of Mexico and the coastal area's energy sector. These reports are developed from a variety of publicly available resources and are updated as events dictate.

Preparations for Hurricane Ike
The projected path for Hurricane Ike has been shifted north, and the National Hurricane Center now predicts landfall between Corpus Christi and Galveston, Texas, late Friday or early Saturday.
A hurricane warning is currently in effect along the Texas and southwestern Louisiana coast.
Despite forecasts that the storm should miss most of the offshore oil and gas fields, operators have stopped re-boarding platforms and rigs following Hurricane Gustav and are resuming evacuated status in preparation for Hurricane Ike.
Texas refineries appear to be most at risk. Eight refineries, with a combined capacity of 2.4 million barrels per day (or 14 percent of the U.S. total), are shutting down in anticipation of Hurricane Ike.

Recovery from Gustav
Recovery efforts from Hurricane Gustav are being put on hold as the Gulf Coast energy industry braces itself for Hurricane Ike.
As of 11:30 a.m. on Sept. 11, 97 percent of oil production and 93 percent of natural gas production in the federal portion of the Gulf of Mexico was shut in.
Personnel have been evacuated from 78 percent of the 717 manned platforms and 77 percent of the 121 rigs currently operating in the Gulf.
On Wednesday morning, the Louisiana Offshore Oil Port suspended marine operations for incoming vessels.
Rising water has prompted a mandatory evacuation at Port Fourchon and areas south of the floodgates as well as for a portion of Lafourche Parish.