Wednesday, August 10, 2022

Monster hurricane pushes Gulf of Mexico oil, refining output almost to zero

Must Read

OilNOW
OilNOW is an online-based Information and Resource Centre

Seeking Alpha – Hurricane Ida Update

  • More than 90% of oil production in the Gulf of Mexico has shut down as Hurricane Ida plows toward the Louisiana coast, threatening an area that is home to 17% of U.S. oil production, 5% of natural gas output and 15% of U.S. refining capacity.
  • Flooding and power outages in the region also could affect major pipelines that carry gasoline to the east coast, energy consultant Andy Lipow says.
  • Lipow notes if New Orleans-area refineries take a direct hit from a Category 4 storm, gas prices likely would rise by ~$0.10/gallon in the southeast and Mid-Atlantic markets.
  • Exxon Mobil (NYSE:XOM) reportedly has cut production at its Baton Rouge refinery to 50% of its 520K bbl/day capacity.
  • The company apparently was maintaining operations at the Baton Rouge Fuels Terminal, which has supplied 6.3M gallons of fuel this week to southeast Louisiana.
  • Valero Energy (NYSE:VLO) is said to have idled production units at its Meraux refinery southeast of New Orleans.
  • Phillips 66 (NYSE:PSX) has fully shut down its 255K bbl/day Alliance refinery, which the company wants to sell in part because it has been hit so frequently by hurricanes.
  • Royal Dutch Shell (RDS.A, RDS.B) shut its 230K bbl/day Norco refinery and Geismar petrochemical plant.
  • Kinder Morgan (NYSE:KMI) has shut down its International Marine Terminals facility, which stores 1.7M tons of coal and petroleum coke, as well as its Harvey and Seven Oaks terminals.
  • BP, Chevron (NYSE:CVX), Exxon, Equinor (NYSE:EQNR), BHP and Murphy Oil (NYSE:MUR) shut in and evacuated all of their offshore platforms.
  • ETFs: XLE, USO, UCO, XOP, VDE, GUSH, OIH, CRAK
  • Based on the projected path, Ida apparently will spare refineries in southwestern Louisiana, which were closed for more than a month after Hurricane Laura in 2020.

spot_img

Latest News

House ratifies Guyana’s low carbon development strategy

Following several months of technical work and extensive nationwide consultations, the National Assembly ratified Guyana’s new and expanded Low...

More Articles Like This

spot_img