Energy News  
Most Gulf Production To Resume Soon

Some 11 percent of the facilities were damaged during Katrina's wrath. Supplies from the Gulf of Mexico provide 29 percent of U.S. domestic oil production and 21 percent of U.S. domestic gas production.

Washington (UPI) Sep 12, 2005
U.S. officials expect 90 percent of the Gulf oil and gas production facilities damaged in Katrina's fury to come back on line in less than a month, but it is not fast enough to alleviate immediate prices at the pump.

"Although Hurricane Katrina moved through a core area of offshore operations and damaged many production and exploration facilities, early reports indicate that the vast majority of facilities could be ready to come back on line in days and weeks, rather than months," Assistant Secretary for Land and Minerals Management Rebecca Watson said last week as she testified before the U.S. Senate Energy and Natural Resources Committee about the status of offshore oil and natural gas production in the Gulf of Mexico.

Gas prices are likely to remain above average due to a decrease in the nation's refining capacity.

"There is now a greater realization that we don't have much extra capacity," Edward H. Murphy, a refining specialist at the American Petroleum Institute, said.

As peak winter demand looms, the slow recovery in the aftermath of Katrina's fury leads industry analysts to fear supplies could remain tight for the consumer.

Without a functioning energy infrastructure, gas supplies will be challenged in meeting demand as oil refinement is delayed. Four producing refineries, which account for approximately 5 percent of total capacity, are expected to remain off line for several months, the Energy Department said. This is enough to make a difference in the skittish market.

Some 11 percent of the facilities were damaged during Katrina's wrath. Supplies from the Gulf of Mexico provide 29 percent of U.S. domestic oil production and 21 percent of U.S. domestic gas production.

Katrina's initial impact was greater than that of Hurricane Ivan and the pace of restoration is proceeding at a slower pace than after Ivan.

At this point after Ivan, approximately 64 percent of the shut-in production of gas and 68 percent of the oil production has been restored. The progress after Katrina, however, is slower with 54 percent of the gas and 40 percent of the oil back on line.

At its peak on Aug. 30, 95 percent of daily oil production and 88 percent of daily gas production was shut down for environmental and human safety. Those figures currently stand at 58 percent of oil production and 42 percent of natural gas production.

"A full assessment of the damage from Hurricane Katrina will require several more days," Watson said. "Many facilities have still not been inspected by their operators."

No significant spills have yet been reported.

"All safety systems worked to successfully shut down production on the OCS (Outer Continental Shelf) platforms," added Watson.

Katrina destroyed 4,000 U.S. Outer Continental Shelf production facilities and 37 shallow water platforms and four large deep-water platforms. The latter could take between three to six months to bring back on line.

Some pipelines suffered damage that could take months to repair, while others have been inspected, tested, and have already commenced operations.

"Despite this damage, about 90 percent of Gulf oil production could return to the market in one month, if refineries, processing plants, pipelines and other onshore infrastructure are in operation to receive, prepare and transport it to the consumer," Watson told the Senate Committee.

Despite a demand increase for refining, crude demand dropped.

In London, Brent crude Monday slipped $1.62 to settle at $62.28. West Texas Intermediate also slipped $1.43 to end At 63.70. Crude prices are now $8 below the Aug. 30 record of $70.85.

Community
Email This Article
Comment On This Article

Related Links
SpaceDaily
Search SpaceDaily
Subscribe To SpaceDaily Express
Powering The World in the 21st Century at Energy-Daily.com



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


Europe Debates Nuclear Energy
Washington (UPI) Jan 11, 2006
European Union countries are starting to rethink their opposition to nuclear energy amid a dispute between Russia and Ukraine over natural gas supplies, but energy analysts say a switch still lacks a green light.







  • Most Gulf Production To Resume Soon
  • US Oil Starts To Flow Week On From Katrina
  • GlobeTel Announces Letter Of Intent With Solar, Fuel Cell Research Consortium
  • Oil Prices Cool As US Energy Production Improves After Katrina

  • Russia To Build Nuke Waste Facility
  • Death, Environmental Toll From Chernobyl Less Than Feared: Report
  • China Won't Sign On To PSI
  • China Issues White Paper On Arms Control

  • Getting To The TOPP Of Houston's Air Pollution
  • Scientists Seek Sprite Light Source



  • Analysis: N.Korea No Longer Wants Food Aid?
  • Novel Compounds Show Promise As Safer, More Potent Insecticides
  • Agriculture Reviving In Aceh After Tsunami: Scientists
  • Analysis: EU Farm Aid Under Spotlight

  • Could Katrina Kill The SUV?
  • SUV Drivers Beware: Paris Can Be A Deflating Experience
  • Mitsubishi, TEPCO To Team Up On Electric Car: Report
  • Intelligent System Offers Safer Tunnel Traffic For Europe

  • Boeing Sells First Private Jet In China
  • Lockheed Martin Supporting Space-Based Navigation For FAA
  • Electrical Power Flows Into First Lockheed Martin F-35
  • Boeing's F-15 Shoots Down French Rafale For Key Singapore Fighter Deal

  • NASA plans to send new robot to Jupiter
  • Los Alamos Hopes To Lead New Era Of Nuclear Space Tranportion With Jovian Mission
  • Boeing Selects Leader for Nuclear Space Systems Program
  • Boeing-Led Team to Study Nuclear-Powered Space Systems

  • The content herein, unless otherwise known to be public domain, are Copyright 1995-2006 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA PortalReports are copyright European Space Agency. All NASA sourced material is public domain. Additionalcopyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement