Approximately 30% of Gulf of Mexico production shut in. Tropical Storm Barry, which could yet turn into a hurricane, forced the shuttering of about 30 percent of the oil production in the Gulf of Mexico. About 44 percent of natural gas output was also closed down.
Wind is not going to be a major problem from Berry, but heavy rains and flooding are going to cause a lot of damage and may impact onshore production and refining operations. Keep in mind that our gasoline distribution network is basically a "just in time" system. This means local filling stations from Texas to Florida may run out of gasoline and diesel. Fill up today.
Tropical Storm Berry
Tropical Storm Berry
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Tropical Storm Berry
The storm — with current top winds of 50 miles an hour — may drop as much as 25 inches of rain in some places, according to an advisory from the U.S. National Hurricane Center. Ship traffic was disrupted in the Mississippi River, where water levels are rising. Companies have cut 53 per cent of oil and 45 per cent of natural gas output in the Gulf.
Read more: https://www.investing.com/analysis/trop ... -200439202
Read more: https://www.investing.com/analysis/trop ... -200439202
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Tropical Storm Berry
Gulf of Mexico operators have shut-in 1.01 million barrels a day of oil production because of the storm, the Bureau of Safety and Environmental Enforcement said in a notice. Almost 1.24 billion cubic feet a day of natural gas production is also closed.
The Gulf offshore region accounts for 16 per cent of U.S. crude oil output and less than three per cent of dry natural gas, according to the Energy Information Administration. More than 45 per cent of U.S. refining capacity and 51 per cent of gas processing is along the Gulf coast.
While the offshore platforms could return to normal operations in a few days, there is a chance widespread flooding could close some refineries and make it difficult for ships to make deliveries across the region, Jim Rouiller, chief meteorologist at the Energy Weather Group near Philadelphia, said by telephone.
“The first impact is to the rigs and platforms, then the second risk shows up on Friday and Saturday to the refinery areas,” Rouiller said. “The thing that is going to be really worrisome is the amount of flooding rains across Louisiana. I think the worst is yet to come.”
The Gulf offshore region accounts for 16 per cent of U.S. crude oil output and less than three per cent of dry natural gas, according to the Energy Information Administration. More than 45 per cent of U.S. refining capacity and 51 per cent of gas processing is along the Gulf coast.
While the offshore platforms could return to normal operations in a few days, there is a chance widespread flooding could close some refineries and make it difficult for ships to make deliveries across the region, Jim Rouiller, chief meteorologist at the Energy Weather Group near Philadelphia, said by telephone.
“The first impact is to the rigs and platforms, then the second risk shows up on Friday and Saturday to the refinery areas,” Rouiller said. “The thing that is going to be really worrisome is the amount of flooding rains across Louisiana. I think the worst is yet to come.”
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group