Recovery of Oil Production and Processing in the Gulf
Energy futures prices dropped sharply upon the Sept. 2 announcement that the Paris-based International Energy Agency and the European Union Commission unanimously approved a measure to release 2 million b/d of oil from strategic storage for 30 days to help offset US loss of 1.5 million b/d of oil production and 2 million b/d of refining capacity damaged by Hurricane Katrina (OGJ Online, Sept. 2, 2005).
President George W. Bush earlier authorized the US Department of Energy to take crude from the Strategic Petroleum Reserve (SPR) for refiners whose supplies were disrupted by the hurricane (OGJ Online, Sept. 1, 2005).
The US Minerals Management Service said Sept. 5 that 228 platforms and 37 drilling rigs remained evacuated in the Gulf of Mexico with a little over 1 million b/d of oil production and 5.2 bcfd of natural gas production still shut in.
From Aug. 26 through Sept. 5, the industry had lost cumulative production from the gulf totaling 11.98 million bbl of oil and 64.09 bcf of natural gas.
Colonial Pipeline Co.'s 5,500-mile pipeline system was reported operating at 100% capacity on Sept. 5 after electrical power was restored to its facilities.
Plantation Pipe Line Co., Houston, said its mainlines were operating at full capacity with a throughput of 620,000 b/d after electric power was restored to its primary pump stations.
The Louisiana Offshore Oil Port was operating virtually at full capacity Sept. 5, although power had not been restored at the Clovelly, La., storage facility.
The Association of Oil Pipelines reported Dixie Pipeline Co.'s propane line is at 50% of normal capacity, or 200 million gal/day.
In testimony Sept. 6 before the Senate Committee on Energy and Natural Resources, Bob Slaughter, president of the National Petrochemical and Refiners Association, said, "Although some of the affected refineries may restart and return to capacity or near-capacity levels this week, there are indications that several facilities may be out of service for a longer period."
Motiva Enterprises LLC's 226,500 b/d refinery in Norco, La., suffered limited damage from the hurricane, but workers were making repairs, and the facility might restart by midweek.
Motiva's 235,000 b/d refinery in Convent, La., was reported to have restarted and "may be fully operational in a few days."
Marathon Petroleum Co. LLC's 245,000 b/d refinery in Garyville, La., was one of the first refineries to restart and was expected to be fully operational by Sept. 6.
Marathon's 222,000 Catlettsburg, Ky., previously was operating at reduced capacity but was expected to return to full capacity Sept. 6.
Valero Energy Corp. said Sept. 6 that its two newly acquired refineries in Memphis, Tenn., and Lima, Ohio, as well as its 80,000 b/d Krotz Springs, La., refinery, "all returned to normal operations this weekend" after DOE earlier approved the company's request for the loan of 1.5 million bbl of SPR crude.
Valero's 185,000 b/d St. Charles, La., refinery will starg up midweek .
No power and major damage to ConocoPhillips' 247,000 b/d facility at Belle Chasse, La.
No power and water damage to ExxonMobil Corp.'s 187,000 b/d Chalmette, La., refinery.
Major damage but power restored at Chevron Corp.'s 325,000 b/d Pascagoula, Miss., unit.
Murphy Oil Corp.'s 125,000 b/d refinery at Meraux, La., was still without power Sept. 5; however, DOE said workers were assessing damage and had repaired a leaking crude oil tank while water was receding.
Officials at DOE said they were unable to contact and therefore had no information on the status of Shell Chemical LP's 55,000 b/d refinery at St. Rose, La., or its 80,000 b/d Saraland, Ala., facility.
ConocoPhillips' 239,400 b/d Lake Charles, La., refinery was said to be returning to full capacity Sept. 5.
ExxonMobil's 493,500 b/d Baton Rouge refinery is now fully operational with crude borrowed from SPR.
No damage nor disrupted operations of the Gulf Gateway Energy Bridge deepwater LNG port or the regasification vessel Excellence, which was discharging natural gas into the Sea Robin and Blue Water pipeline systems at the time of the storm.