Anyone watching Port Fourchon?

mrbill
Posts: 77
Joined: Fri May 07, 2010 3:58 pm

Anyone watching Port Fourchon?

Post by mrbill »

Port Fourchon, practically in Grand Isle, LA, is the "Bagram Air Base" of the Gulf Of Mexico offshore oil industry.
Huge open ended metal buildings on the water for loading and unloading of the GOM marine offshore vessel fleet.
The offshore supply boats are built to take weather punishment like "Hurricane Ida".

However, they load and unload under those metal buildings. Knock out all the electrical, overhead cranes, etc.
and there will be an immediate problem supplying the offshore rigs in the GOM.

Weather Channel keeps showing the beach homes on Grand Isle getting hit, but have seen nothing so far about
Port Fourchon. The offshore platforms will survive, but they need supplies, food, liquid mud, fuels, etc. to run
after the storm passes. Knock out all the electrical in Fourchon and all the cranes and pumps, etc. will be down.
Hope I'm wrong.
mrbill
Posts: 77
Joined: Fri May 07, 2010 3:58 pm

Re: Anyone watching Port Fourchon?

Post by mrbill »

11:45 a.m. Weather Channel says Ida storm eye wall just hit Port Fourchon. A direct hit. Hope they built that port infrastructure with an event like this in mind. Roads South will be under water, they are at sea level normally.
Besides Fourchon, this storm will beat up the heart of the South Louisiana oil biz. Lots of shipyards.

Now Stephanie Abrams/Weather Channel in Morgan City is saying 150mph winds at Port Fourchon. This is super serious.
dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Re: Anyone watching Port Fourchon?

Post by dan_s »

Pray for that town because not much can withstand 150 mph winds. Flooding will be the big problem outside of the areas getting 100+ mph winds.
Dan Steffens
Energy Prospectus Group
mrbill
Posts: 77
Joined: Fri May 07, 2010 3:58 pm

Re: Anyone watching Port Fourchon?

Post by mrbill »

Steph Abrams now reporting 35 ft. waves in Port Fourchon at 12:30. The human impacts starts big time when it
moves North to Golden Meadow, Galliano, and Houma. There has always been talk in Louisiana about the
"perfect storm" that brings in the Gulf water and it never goes back out to sea.

Sadly, this will have a huge negative impact on Gulf Of Mexico oil and gas production through the support industry.
Port Fourchon is like Pearl Harbor with all the boats in. Knock out the loading facilities and the offshore boats are
crippled. Could not be much worse.
dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Re: Anyone watching Port Fourchon?

Post by dan_s »

Sounds like Grand Isle, that is just above sea level, is in bad shape. ~40 people decided to stay and ride out the storm. I sure pray that they make it. 10+ feet of storm surge will make it tough.
Dan Steffens
Energy Prospectus Group
mrbill
Posts: 77
Joined: Fri May 07, 2010 3:58 pm

Re: Anyone watching Port Fourchon?

Post by mrbill »

Port Fourchon is walking distance to Grand Isle. Did they move the offshore vessels out? We will see.
If they stayed there it's conceivable to see them end up on the banks, maybe in groups. Like the floating casino vessels in Katrina. And the buildings might end up only girders at best. If so, how are the offshore platforms supplied? Choppers can't do it.

LOOP offshore oil port: Hope that was locked down. Will delay crude unloading from super tankers.

This is a knock out punch to the GOM offshore oil and gas production. Jim Cantore/Weather Channel is on Canal St. on New Orleans looking at overturned dumpsters. When Fourchon clears be prepared for a shock. It has to negatively affect GOM oil/gas production for a long time. And usher in shortages fast.
Fraser921
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Joined: Mon Mar 22, 2021 11:48 am

Re: Anyone watching Port Fourchon?

Post by Fraser921 »

Port Fourchon, the service hub for almost all of the Gulf of Mexico oilfield, was dealing with some of Hurricane Ida's strongest winds and storm surge on Sunday.

“We’re still seeing impacts,” Chett Chiasson, the port's executive director, said in a telephone interview early Sunday afternoon from the facility's administrative offices a few miles north in Galliano. “We were ground zero during landfall and received high winds and high water. There will be considerable damage when it will be all said and done.”
Fraser921
Posts: 2955
Joined: Mon Mar 22, 2021 11:48 am

Port Fourchon impacts? How to play this

Post by Fraser921 »

From Josh Young:

Port Fourchon, an important supply base to the offshore Gulf of Mexico oil and gas industry, was devastated by Hurricane Ida. Videos show damaged cranes and boats, along with depot buildings having essentially disappeared. Conversations with oil services executives and engineers indicated concern about destroyed servicing capacity from Port Fourchon and elsewhere. As the port itself rebuilds, there may not be the people, equipment and supply chain to effectively repair and restart the numerous offline rigs and production platforms in the Gulf. What could have taken days could potentially take weeks or longer, with smaller and older platforms possibly pushed into retirement. This could keep hundreds of thousands of barrels a day of production offline for days and possibly weeks. Perhaps there is another possible upcoming +5-10% move in the price of oil when the impact of Port Fourchon devastation is better understood to be taking hundreds of thousands of barrels offline for weeks instead of days.

On the natural gas side, assuming a similar impact from the storm and Port Fourchon, this could mean about 0.5 Bcf/d of gas offline for weeks. Even with low natural gas inventory levels, this may not impact short term natural gas prices too much as incremental thermal coal is burnt in the short term. However, with extra gas pulled out of inventories, the risk of a shortfall in the winter may increase, potentially sending futures prices for December - March higher.

He recomends: Unhedged, value-priced producers in unaffected areas may be the best way to "play" this

My take based on this : CLR unhedged with production in Bahken, Wyoming, Oklahoma..2.4 b in free cash flow (See Dans latest update) MRO & COG
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Re: Anyone watching Port Fourchon?

Post by dan_s »

Great reporting!
Dan Steffens
Energy Prospectus Group
Fraser921
Posts: 2955
Joined: Mon Mar 22, 2021 11:48 am

Re: Anyone watching Port Fourchon?

Post by Fraser921 »

Credit Mr Bil for posting original comment: I didnt know where Port Fourchon was and the importance.

Prompted me to do searches on whats going on. Very interesting..so thanks Mrbill for the original comment
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