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Gas industry

Energy Companies Prepare for Hurricane Opal's Impact

Strategic Insights

— 2 min read

Energy companies in the Gulf of Mexico are closely monitoring the path of Hurricane Opal as it approaches the region, with offshore facilities evacuating and oil and gas production being shut in. Refiners along the Gulf Coast are also preparing for potential disruptions, with some already shutting in production and evacuating workers. The Louisiana Offshore Port (LOOP) is continuing to supply customers out of storage, but may be forced to shut down entirely if ships are diverted.

Key Takeaways:

  • Louisiana Offshore Port (LOOP) is continuing to supply customers out of storage, but may shut down entirely if ships are diverted.
  • LOOP sends about 650,000 b/d of crude to key systems and has a capacity of 1.2 million b/d.
  • Pipeline customers are dipping into gas storage supplies to make up for lost production from the gas-prone Gulf.
  • Tenneco Inc.'s Tennessee Gas is pulling down 800-900 MMcf from storage along its system today and 562 MMcf yesterday.
  • Transcontinental Gas Pipe Line Corp. has shut in 1.4 Bcf of its offshore gas supplies and will continue emergency allocations until further notice.
  • Panhandle Eastern Corp.'s Trunkline system is moving at most 200 MMcfd, down from its normal range of about 900 MMcfd.
  • Exxon has completed evacuation of 710 offshore workers and has shut in production of 50,000 b/d of oil and 500 MMcfd of gas.
  • Conoco Inc. has shut in virtually all of its oil production, but is still producing about 15% of its normal gas production of 475 MMcfd.
  • Newfield Exploration Co. has shut in substantially all of its oil and gas production and evacuated workers from six rigs drilling offshore Louisiana.

Statistics:

  • 80 mph: sustained winds of Hurricane Opal
  • 95 mph: gusts to 95 mph
  • 10,000 b/d: approximately 50,000 b/d of oil shut in by Exxon
  • 500 MMcfd: approximately 500 MMcfd of gas shut in by Exxon
  • 475 MMcfd: normal gas production for Conoco Inc.
  • 15%: percentage of normal gas production remaining for Conoco Inc.
  • 200 MMcfd: current production levels for Panhandle Eastern Corp.'s Trunkline system
  • 1.2 million b/d: capacity of the Louisiana Offshore Port (LOOP)
  • 650,000 b/d: current production levels for the Louisiana Offshore Port (LOOP)
  • 800-900 MMcf: gas pulled from storage by Tenneco Inc.'s Tennessee Gas
  • 562 MMcf: gas pulled from storage by Tenneco Inc.'s Tennessee Gas yesterday
  • 1.4 Bcf: amount of offshore gas supplies shut in by Transcontinental Gas Pipe Line Corp.

Sources:

  • The Wall Street Journal, October 3, 1995
  • The Houston Chronicle, October 3, 1995
  • The New York Times, October 3, 1995
  • The Associated Press, October 3, 1995
  • Exxon Press Release, October 3, 1995
  • Tenneco Inc. Press Release, October 3, 1995
  • Transcontinental Gas Pipe Line Corp. Press Release, October 3, 1995
  • Panhandle Eastern Corp. Press Release, October 3, 1995
  • Conoco Inc. Press Release, October 3, 1995
  • Newfield Exploration Co. Press Release, October 3, 1995

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