Gulf oil producers scramble to come back online

Sanitize this!

This uptick in demand comes as the Gulf Coast is still trying to get back to normal and believe it or not, right in the Gulf of Mexico there is another tropical disturbance that the National Hurricane Center says that at this time has a 50% chance of becoming a tropical cyclone.

As of yesterday the Bureau of Safety and Environmental Enforcement (BSEE) said that from operator reports, it is estimated that approximately 49.33% of the current daily oil production in the Gulf of Mexico has been shut-in. It is also estimated that approximately 25.71% of the current daily natural gas production in the Gulf of Mexico has been shut-in. If we get another cyclone in the Gulf, obviously that could push back progress even further.

The BSEE also says that based on data from offshore operator reports submitted as of 11:30 a.m. CDT yesterday, personnel remain evacuated on a total of 18 production platforms, equivalent to 3.02% of the 596 manned platforms in the Gulf of Mexico. Production platforms are the structures located offshore from which oil and natural gas are produced. Unlike drilling rigs, which typically move from location to location, production facilities remain in the same location throughout a project’s duration. Personnel remain evacuated from one rig, equivalent to 1.32% of the 76 rigs currently operating in the Gulf. Rigs can include several types of self-contained offshore drilling facilities including jackup rigs, submersibles and semi-submersibles.

Bloomberg News reported that Valero Energy Corp. estimates the startup of a new hydrocracker at its St. Charles refinery in Louisiana will be delayed until the second quarter of 2013 from the first quarter. The startup was pushed back because of Hurricane Isaac and a shooting Aug. 16 near the plant, Bill Day, a spokesman for the refiner in San Antonio, said in an interview.

About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

Futures and options trading involves substantial risk of loss and may not be suitable for everyone. The information presented by The PRICE Futures Group is from sources believed to be reliable and all information reported is subject to change without notice.


Comments
comments powered by Disqus