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EIA Report on Hurricane Impacts on U.S. Energy 


 As of Tuesday, September 9, 4:00 pm     See current        


U.S. Oil and Natural Gas Market Impacts


Prices
NYMEX Futures Prices
(for October delivery)

9/9/2008
Pre-Gustav 8/29/2008 change Week Ago
9/2/2008
Year Ago
9/10/2007
  WTI Crude Oil ($/Bbl)
103.26
115.46
-12.20
109.71
77.49
  Gasoline RBOB* (c/gal)
265.26
285.42
-20.16
273.37
197.86
  Heating Oil (c/gal)
292.47
319.19
-26.72
307.36
217.16
  Natural Gas ($/MMBtu)
7.54
7.94
-0.40
7.26
5.89
*RBOB = Reformulated Blendstock for Oxygenate Blending (RBOB), the base gasoline that needs to be blended with some type of oxygenate, now usually ethanol, to be turned into finished reformulated gasoline (RFG). Ethanol is not blended into the gasoline mixture until just before the gasoline is shipped to the retail stations.

Petroleum
As of 12:30 pm EDT (11:30 am CDT), September 9, the Minerals Management Service was reporting that 1.0 million barrels per day (or about 75 percent) of the federal portion of the Gulf of Mexico’s crude oil production was shut-in.  As of 10:00 am EDT (9:00 am CDT), September 9, the Department of Energy reported that the only refinery in the Gulf of Mexico region that remains shutdown is the ConocoPhillips refinery at Belle Chasse, LA, with a capacity of 247,000 barrels per day of capacity.  Another 11 refineries have reduced their crude oil throughput.  Additionally, the Department of Energy was reporting that the Colonial and Plantation product pipelines, which move supply from the Gulf Coast to the East Coast, are running, but at reduced rates.  The Centennial product pipeline, which moves supply from the Gulf Coast into the Midwest, is back operating normally.

With most of the petroleum infrastructure returning to normal operations and without any reports of significant damage to any petroleum facilities, oil prices have remain well below pre-Hurricane Gustav levels.  Compared to prices before Hurricane Gustav, crude oil for October delivery settled over $12 per barrel lower, while gasoline (RBOB) and heating oil were about 20 cents and 27 cents per gallon lower, respectively, at the close of trading on Tuesday, September 9.  Market analysts and traders may now start keeping a much closer eye on Hurricane Ike, which is expected to enter the Gulf of Mexico later this week.  However, the actual path of Hurricane Ike and the petroleum infrastructure that might be affected, at least temporarily, is still uncertain.  For now, Hurricane Ike does not seem to be affecting oil prices.

Natural Gas
As of 12:30 pm EDT (11:30 am CDT), September 9, the Minerals Management Service was reporting that 4.8 billion cubic feet per day (or well over 60 percent) of the federal portion of the Gulf of Mexico’s natural gas production was shut-in.  The Department of Energy (DOE) reported that as of 9:00 am EDT (8:00 CDT) September 9, three pipelines have no gas flow from offshore points. Flow from one of these offshore pipelines is expected to start sometime tomorrow. The DOE also reported that as of 10:00 am EDT (9:00 am CDT) 21 natural gas processing plants have resumed operations at either reduced (12 plants) or normal levels (9 plants).  Four processing plants are capable of restarting operations once power is restored and/or gas flow from upstream commences.  In addition, six plants remain shut down, including one plant that is undergoing scheduled maintenance.



Also see:
Hurricane Situation Reports from DOE's Office of Electricity Delivery & Energy Reliability
STEO Hurricane Analysis (pdf)

 

 

Hurricane Gustavís Path
as of 0500 EDT, September 2, 2008
maps courtesy of iMapData and Pennwell

Gulf of Mexico Oil & Natural Gas Facts
Energy Information Administration
Gulf of Mexico
Total U.S.
% from
Gulf of Mexico
Oil (million barrels per day)
  Federal Offshore Crude Oil Production (4/08)
1.35
5.16
26.15%
  Total Gulf Coast Region Refinery Capacity (as of 1/1/08) 
7.41
17.59
42.12%
Natural Gas (billion cubic feet per day as of 2007)
  Federal Offshore Marketed Production
7.67
NA
NA
  State Offshore Marketed Production
0.67
NA
NA
  Total
8.33
54.7
15.22%

State Energy Profiles
Louisiana
Mississippi
Texas



Archives
Hurricane Gustav
September 8, 2008 Report
September 5, 2008 Report
September 4, 2008 Report
September 3, 2008 Report
September 2, 2008 Report
September 1, 2008 Report

Previous EIA Hurricane Reports