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 gas prices to record highs. Rita has only made the situation worse, as October natural gas futures rallied in electronic trading to $13.42 per million British thermal units on Thursday, which was a new contract high. Prices eased on Friday, but remained extremely high.
Hundreds of workers have been evacuated by the energy firms as Rita approaches, although industry analysts took heart from the fact that the storm had weakened.
Officials at the US Energy Information Agency said 19 of the region’s 26 refineries, with a combined daily output of 5 million barrels of oil, had been shut down ahead of the storm.
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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
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
BP, Shell say Gulf of Mexico ops still suspended
BP PLC and the Royal Dutch Shell said their operations at the Gulf of Mexico remained suspended even as initial inspection showed the offshore facilities sustained little damage from Hurricane Rita.
'The (US Gulf) facilities as of Monday are still completely shut. The situation is still the same,' said a BP spokeswoman.
BP continues to check the facilities and will not allow operations to resume until it is completely certain that it is safe to do so.
'Initial assessment on Sunday via aerial overflights and small crews placed on several BP-operated deepwater
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
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.
Newfield Reports on Resumption of Gulf of Mexico Production Following '05 Storms
Newfield Exploration Company (NYSE: NFX - News) today provided a progress report on the resumption of its production in the Gulf of Mexico following 2005 storms and hurricanes. Newfield estimates that the storms will result in the deferral of approximately 22 billion cubic feet equivalent (Bcfe) of anticipated 2005 production. As a result, Newfield now expects that full-year 2005 production will total approximately 242 Bcfe.
David A. Trice, Newfield Chairman, President and CEO, commented: "Recovery from Hurricane Rita has been much slower than we originally projected with most of the
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
Rita strengthens to Category 3 over Gulf of Mexico
KEY WEST, Fla. Hurricane Rita's top sustained winds are up to 120 miles per hour, and forecasters say the storm is expected to reach Category Four strength sometime today.
Category Four hurricanes pack sustained winds of at least 131 miles per hour.Rita, the fifth major hurricane of the season, largely spared the Florida Keys. But it's aimed for the Gulf Coast, where people are worried.Rita's raging eye did not hit land in the Florida Keys.Thousands of relieved residents who evacuated are expected to begin returning today. Copyright 2005 Associated Press. All rights reserved.
BHP could face write-offs from Gulf of Mexico hurricane damage
BHP Billiton may be forced to write off its Typhoon oil and gas platform after extensive damage caused by hurricanes in the Gulf of Mexico earlier this year, the Age reported, citing analysts.
The newspaper said that analysts downgraded their forecasts for BHP Billiton's oil and gas production after the company provided a briefing on the impact of the hurricanes to investors last Friday.
BHP Billiton did not change its production forecast but warned of the potential for delays on some projects and said no decision had yet been made on
