Oil and gas companies forged ahead restoring production in the U.S.-regulated northern Gulf of Mexico on Oct. 12, three days after Hurricane Delta made landfall, said the U.S. Bureau of Safety and Environmental Enforcement (BSEE).
Shut offshore crude oil production fell to 69.4%, or 1.28 million bbl/d, on Oct. 12 from 91%, or 1.68 million barrels, on Oct. 11, the regulator said.
BSEE also said 47%, or 1.28 Bcf/d, in offshore natural gas production remained shut as of midday on Monday. On Oct. 11, the agency said 62%, or 1.68 Bcf/d, was shut.
Onshore, Total SA completed restarting units at its 225,500 bbl/d Port Arthur, Texas, refinery on Oct. 12 that were shut by a power outage caused by Delta the night of Oct. 9, said sources familiar with plant operations.
Total spokeswoman Marie Maitre declined comment.
Phillips 66 said on Oct. 12 that Delta did not disrupt the power supply at its Lake Charles, La., manufacturing complex, which includes a 260,000-bbl/d refinery that has been shut since Aug. 25 because of extensive damage to the electrical power infrastructure by Hurricane Laura.
Phillips 66 plans to begin restart the Lake Charles refinery by the end of this week, the company said.
Royal Dutch Shell Plc, Chevron Corp. and BP Plc were returning workers to offshore platforms and restarting production as pipelines to carry crude onshore come back.
The Louisiana Offshore Oil (LOOP) said on Oct. 12 it resumed offloading tankers at its terminal in the Gulf, south of the Louisiana coast. The LOOP is the only U.S. port where the largest tankers can dock.
Between Oct. 6 and Oct. 12, a cumulative total of 10.1 million barrels of crude oil production and 9.6 Bcf of natural gas output from the Gulf has been shut because of Hurricane Delta.
Power generation demand, LNG exports and reduced production will combine to push prices higher than the market anticipates.
A colder winter will combine with lower production to boost prices.
Renewables will grow, too, as Asian electricity demand soars between now and 2050.