Harvey: Oil & gas industry starts to assess the hit

NOAA satellite image

AUGUST 29, 2017 — Analysts are attempting to predict the longer term impact as Tropical Storm Harvey continues its rampage through America’s oil and gas industry heartland taking a toll on production, processing and distribution facilities including ports.

Based on data from offshore operator reports submitted to BSEE (Bureau of Safety and Environmental Enforcement) as of 11:30 CDT yesterday, personnel had been evacuated from a total of 98 production platforms, 13.3 percent of the 737 manned platforms in the Gulf of Mexico.

Personnel had been evacuated from five rigs (non-dynamically positioned (DP) rig), equivalent to 50 percent of the 10 rigs of this type currently operating in the Gulf.

None of the 21 DP rigs currently operating in the Gulf had moved off location out of the storm’s path as a precaution.

From operator reports, BSEE yesterday estimated that approximately 18.94 percent of the current oil production of 1,750,000 barrels of oil per day in the Gulf of Mexico had been shut-in, equating to 331,370 barrels of oil per day. It was also estimated that approximately 18.12 percent of the natural gas production of 3,220 million cubic feet per day, or 583.39 million cubic feet per day in the Gulf of Mexico had been shut-in.

ONSHORE PRODUCTION

The U.S, Department of Energy Information reports that, as of August 26, the Texas Railroad Commission estimated that approximately 300,000 to 500,000 b/d of crude production had been shut-in in the Eagle Ford region from a pre-storm production estimate of 870,000 b/d. In addition, approximately 3.0 Bcf/d of natural gas production had been shut-in from a pre-storm production estimate of about 6.0 Bcf/d. The Commission had expected most idled production to come back online in the next few days.

PETROLEUM REFINERIES

The Department of Energy says that, as of 08:00 AM EDT, August 29, all six refineries in the Corpus Christi area and five refineries in
the Houston/Galveston area were shut down, according to public reports. These refineries have a combined refining capacity of 2,361,149 b/d, equal to 24.4% of total Gulf Coast (PADD 3)refining capacity and 12.8% of total U.S. refining capacity. In addition, four refineries in the Houston/Galveston region area, one refinery in the Beaumont/Port Arthur area, and two refineries in the Lake Charles area were operating at reduced rates.

PORTS

The U.S. Coast Guard has set the conditions shown below for ports and waterways in the U.S. Gulf Coast region as a result of Harvey.
In addition, Louisiana Offshore Oil Port (LOOP) facilities are currently reporting normal operations. LOOP is executing its Inclement Weather Plan and will update shippers accordingly.

STATUS OF TEXAS AND LOUISIANA GULF COAST PORTS

Port                                              Status                                                                                                                                           Date

Brownsville                                  Open                                                                                                                                              8/26/17

Corpus Christi                            Closed. Port Condition Zulu. Port is assessing damage. Working to reopen by 9/4                       8/28/17

Freeport                                      Closed. Port Condition Zulu. To remain at Zulu for next 48 hours.                                                8/28/17

Galveston                                    Closed. Port Condition Zulu. To remain at Zulu for next 48 hours.                                               8/28/17

Houston                                       Closed. Port Condition Zulu. To remain at Zulu for next 48 hours.                                               8/28/17

Texas City                                   Closed. Port Condition Zulu. To remain at Zulu for next 48 hours.                                               8/28/17

Beaumont                                    Closed. Port Condition Zulu.                                                                                                         8/28/17

Lake Charles                                Closed. Port Condition Zulu.                                                                                                        8/28/17

Orange                                         Closed. Port Condition Zulu.                                                                                                        8/28/17

Port Arthur                                  Closed. Port Condition Zulu.                                                                                                          8/28/17

Sabine Pass                                 Closed. Port Condition Zulu.                                                                                                        8/28/17

Source: U.S. Coast Guard