Evacuations were underway on Sept. 13 from offshore U.S. Gulf of Mexico oil platforms as onshore oil refiners began preparing for rain and heavy winds from a second hurricane in as many weeks.
Hurricane Nicholas was taking aim at the central Texas coast with 75 miles per hour (120 kph) winds, threatening to bring heavy rain to Texas and parts of Louisiana still recovering from Hurricane Ida.
Life-threatening flash floods from up to 12 inches of rain are possible along the upper Texas coast to southwest Louisiana. Nicholas intensified into a category one hurricane late Sept. 13 but is not expected to strengthen further, the National Hurricane Center said.
Nicholas is the second cyclone to threaten the U.S. Gulf Coast energy complex in recent weeks. Hurricane Ida wreaked havoc on oil production and refining facilities in late August and early September. Some 113,000 Louisiana homes and businesses have been without power since Ida struck.
Ida Damage
More than 40% of the U.S. Gulf of Mexico’s oil and gas output remained offline on Sept. 13, two weeks after Ida slammed into the Louisiana coast, according to offshore regulator Bureau of Safety and Environmental Enforcement (BSEE).
Damages to an offshore hub that pumps oil and gas from three major oil fields for processing onshore and power outages at onshore processing plants are responsible for the production losses.
Royal Dutch Shell Plc said it had begun evacuating non-essential personnel from its Perdido platform, which was unaffected by Ida. Occidental Petroleum Corp. said it was implementing procedures to safeguard workers, signaling its own offshore evacuations.
Shippers were warned of hurricane-force winds at oil export terminals on the Texas coast. The Houston Ship Channel, a 53-mile (85 km) waterway crucial to oil and fuel exports, halted all traffic, and the Aransas-Corpus Christi pilots suspended activities due to heavy seas.
There were 55,000 homes and businesses without power late Sept. 13, according to tracking website PowerOutage.com.
Oil refiners Citgo Petroleum, Exxon Mobil Corp., Phillips 66, and Shell said they were preparing some of their Texas and Louisiana coastal plants for severe weather.
Slow Storm
“The big thing is going to be the rain. I’'s going to be a slow-moving storm. When storms move at 5 of 8 miles per hour it can take a while for them to clear out,” said Phil Klotzbach, a researcher at Colorado State University.
WTI crude oil futures in the U.S. rose at the open in Asia on Sept. 14 after climbing 1% the day before to $70.45/bbl on continued disruptions to offshore production.
Oil imports and exports face potential delays from Nicholas. Vessels that were unable to load or discharge during Ida could be prevented from reaching ports again, shippers said.
The first supertanker scheduled to dock since Ida at the Louisiana Offshore Oil Port (LOOP), the largest U.S. privately owned terminal for crude exports and imports, has yet to load, according to Refinitiv Eikon vessel tracking.
Editor’s note: This story was updated at 4:05 a.m. CST Sept. 14.
Recommended Reading
Enbridge Cuts Toll to Transport Crude from Canada to Gulf
2024-08-23 - The change comes three months after Canada tripled capacity to 890,000 bbl/d on the Trans Mountain Pipeline.
Tidewater Midstream Completes $122MM Strategic Transaction
2024-09-13 - Tidewater Midstream and Infrastructure purchased assets from its renewables-focused subsidiary Tidewater Renewables.
Entergy Picks Cresent Midstream to Develop $1B CCS for Gas-fired Power Plant
2024-09-20 - Crescent will work with SAMSUNG E&A and Honeywell on the project.
Matterhorn NatGas Pipeline Ramps Up Faster Than Expected
2024-10-22 - The Matterhorn Express natural gas pipeline has exceeded expectations since its ramp up on Oct. 1 for deliveries to interstate systems owned by Kinder Morgan, Williams and Enbridge.
Tallgrass Holds Open Season for Pony Express Capacity
2024-09-23 - Tallgrass Energy is running a binding open season for commitments on the network’s terminal in southeastern Wyoming.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.