Oil, Gasoline Rise as Hurricane Rita Shuts Gulf of Mexico Rigs
Crude oil and gasoline climbed as Hurricane Rita threatened rigs, refineries and platforms in the Gulf of Mexico, less than a month after Hurricane Katrina struck.
Producers including BP Plc and Anadarko Petroleum Corp. evacuated staff and shut off-shore operations in the Gulf. Rita may reach the coast of Texas, the producer of a quarter of the nation’s refined fuel, by Friday. The storm is expected to grow as strong as Katrina, which shut down nearly 10 percent of U.S. refining capacity when it hit last month.
“Rita is more an issue for refining than it is for production,'’ Adam Sieminski, an oil strategist at Deutsche Bank AG, said in London today. “There are more refineries in Texas than there are in Louisiana,'’ so damage could “possibly'’ be more severe than after Hurricane Katrina.
Crude oil for November delivery rose as much as $1.40, or 2.1 percent, to $67.60 a barrel in after-hours electronic trading on the New York Mercantile Exchange. It was up $1.07 at 10:55 a.m. in London. The price is 43 percent higher than a year ago.
More: bloomberg.com
Rita shuts down oil production in Gulf of Mexico
The impending strike of Hurricane Rita on the Texas coast poses as much of a risk to chemical output as it does to oil production and refining, analysts say, threatening shortages of key chemicals in coming days and weeks.
An estimated 72 percent of all U.S. production capacity for ethylene was in the strike area of Rita.
"About 72 percent of U.S. ethylene capacity is in the risk area, while 26 percent of U.S. refinery capacity is there," said an analyst .
The devastating effects of Katrina on the Gulf of Mexico also pushed natural
Oil Production Down 78 Percent in Gulf of Mexico
The U.S. government says oil production in the Gulf of Mexico was nearly 80 percent below normal as of Saturday, five days after Hurricane Katrina tore through the region.
A report from the U.S. Minerals Management Service said Katrina had cut oil production in the Gulf by about 1.18 million barrels of oil per day. It said more than 280 offshore oil-drilling rigs and platforms remained evacuated.
The figures represent a slight improvement from Friday, when oil production in the Gulf was nearly 90 percent below normal.
Katrina's disruption to Gulf-area oil production and refineries
Chevron evacuating Gulf of Mexico workers before Rita
Chevron Corp. said Monday it is evacuating oil rig workers in the Gulf of Mexico before Tropical Storm Rita hits, a move which could reduce oil production in the region.
based Chevron (NYSE:CVX) told Reuters that its evacuations were a normal procedure, similar to what it did before Hurricane Katrina blew through the Gulf.
Chevron didn't say how the evacuation will affect its oil or natural gas production.
Tropical Storm Rita was heading toward the Florida Keys and several weather models projected it would enter the Gulf and become a category one hurricane.
Reuters
All Gulf of Mexico crude prod halted
Essentially all Gulf of Mexico crude oil production and 30 percent of U.S. oil refinery production was shut as Hurricane Rita approached the Texas and Louisiana coasts.
Oil prices dropped Friday afternoon as Rita was downgraded to a Category 3 at maximum sustained winds of 125 mph.
About 72 percent of natural gas production was shut in by Friday, the U.S. Minerals Management Service said.
The MMS said 99.1 percent of crude production was shut.
The storm has forced shut 15 big U.S. refineries, adding to the four that had remained shut after Hurricane Katrina
All Gulf of Mexico rigs, platforms remanned: MMS
All 953 oil and natural-gas rigs and platforms in the Gulf of Mexico have been remanned following the evacuations last week because of Hurricane Dennis, according to the latest report from the U.S. Minerals Management Service. A total of 5.3 million barrels of oil production and 23.2 billion cubic feet of natural-gas output were shut in between July 8 and July 14, the MMS said
This story was supplied by MarketWatch. For further information see www.marketwatch.com
More: futures.fxstreet.com
BHP Billiton says Gulf of Mexico production remains shut
Australia's BHP Billiton Ltd. (BHP) said Wednesday that oil production at its Gulf of Mexico rigs is still shut after hurricane Katrina caused devastation in the area.
There is little damage to BHP's facilities, but the disruption at refineries means production will be stopped for much longer than previously thought, a BHP spokeswoman said.
She said the company doesn't know how long.
Last week, BHP said it expected oil production to be shut off for a couple of days, after it evacuated crews and moved its rigs in preparation for the hurricane.
Gulf of Mexico oil ops in 'relatively good shape' after Rita - Texas governor
Oil platforms in the Gulf of Mexico and the hub of refineries along the southern coast of the US appear to have survived Hurricane Rita without major damage, the governor of Texas said on Sunday.
'The refineries appear to be in relatively good shape,' Governor Rick Perry told Fox News Sunday.
One pipeline was ruptured 'but it's being repaired as we speak,' Perry said.
While oil companies said it would take some time to figure out the full effect of the storm, Perry expressed cautious optimism
Crude Oil Is Little Changed as Hurricane Wilma Nears Mexico
Crude oil was little changed amid forecasts Hurricane Wilma, a storm with winds of up to 150 miles per hour (240 kilometers per hour), would hit Mexico's Yucatan peninsula and then swerve northeast, away from oil and gas rigs.
Forecasts show the storm will reach southern Florida during the weekend, the National Hurricane Center said on its Web site. The path of the storm is moving away from the oil and gas production areas in the Gulf of Mexico, which are recovering from damage caused by earlier Hurricanes Katrina and Rita.
Hurricane Rita ploughs across the Gulf of Mexico
Hospital and nursing home patients were evacuated and as many as one million others were ordered to clear out along the Gulf Coast today as Hurricane Rita intensified into a Category 4 storm with 140mph winds that could batter Texas and bring more misery to New Orleans by the weekend.
Galveston, parts of Houston and New Orleans were under mandatory evacuation orders, one day after Rita sideswiped the Florida Keys as a Category 2 storm and caused minor damage.
Having seen what Hurricane Katrina did just three weeks ago, many people decided not to take
Hurricane Rita - Cuba/Gulf of Mexico: OCHA Situation Report No. 1
This report is based on information provided by the Office of the United Nations Resident Coordinator in Cuba and several media report.
1. The Hurricane RITA, classified already category IV event according to the Saffir-Simpson scale, has been affecting the territory of Cuba during the last days. RITA continues advancing in the Gulf of Mexico due west, leaving behind in Cuba torrential rains.
2. Torrential rains and thunderstorms, accompanied by strong wind squalls, some of them up to 100 km an hour, pounded many areas of Cuba for several days.
