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EIA Report on Hurricane Impacts on U.S. Energy 


 As of Friday, September 26, 4:00 pm        


U.S. Oil and Natural Gas Market Impacts


Prices
NYMEX Futures Prices
(for October delivery)

9/26/2008
Pre-Gustav 8/29/2008 change Week Ago
9/19/2008
Year Ago
9/26/2007
  WTI Crude Oil ($/Bbl)
108.89
115.46
-8.57
104.55
80.30
  Gasoline RBOB* (c/gal)
266.51
285.42
-18.91
259.97
202.74
  Heating Oil (c/gal)
299.49
319.19
-19.70
289.78
218.26
  Natural Gas ($/MMBtu)
7.47
7.94
-0.47
7.53
6.40
*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 26, the Minerals Management Service was reporting that over 700,000 barrels per day (or about 57 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 26, the Department of Energy reported that there are 3 refineries in Texas that are shut down due to Hurricane Ike.  These 3 refineries have a total capacity of about 700,000 barrels per day (about 4 percent of U.S. operable capacity), and represent nearly 300,000 barrels per day of gasoline output (about 3 percent of U.S. gasoline demand in September) and over 100,000 barrels per day of distillate fuel output (over 2 percent of U.S. demand in September), based on recent historical data.  So far, since refineries first shut down before Hurricane Gustav, nearly 45 million barrels of products have not been produced, including nearly 21 million barrels of gasoline and over 14 million barrels of distillate fuel. This does not include reduced production from refineries that have reduced runs at various times during Hurricanes Gustav or Ike.  As of September 26, 10 refineries were running at a reduced rate.  As of September 26, the Colonial and Plantation product pipelines continue to operate at reduced rates.  Both of these are major product pipelines going from the Gulf Coast to the East Coast.

It takes several days for a refinery to get back to normal operation after first getting power restored, even if there is no significant damage following a hurricane.  Refined product supplies are still constrained in portions of the country because of refining capacity that is still significantly reduced from pre-hurricane levels, as noted above.  As refineries return to full production, supplies will increase into pipelines, thus providing more supplies to those that have seen constraints in the supply system.  But it could take several days or even a couple of weeks before the distribution system, from refineries to retail stations, is once again at pre-hurricane operation levels.

Natural Gas
As of 12:30 pm EDT (11:30 am CDT), September 26, the Minerals Management Service was reporting that 3.9 billion cubic feet per day (or about 53 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 10:30 am EDT September 26, seven major natural gas pipelines in the Gulf Coast area continue to report complete shut-in of their systems. Four of the seven pipelines have notified their customers that the pipeline is ready to return to service upon completion of damage assessments of interconnecting facilities and resumption of gas flow.  The other three pipelines have reported that repairs to the damage facilities are ongoing.  In addition, many of the natural gas pipelines that have commenced gas flow from their offshore receipt points continue to see improvements.  As additional offshore natural gas production becomes available some of the pipelines are either at or close to pre-Hurricane levels of gas flow on their systems.

There are 39 major natural gas processing plants in the path of Hurricane Ike with a total operating capacity of 17.7 billion cubic feet per day (Bcf/d). As of 10:30 am EDT September 26, seven plants remain shut down which includes those plants still impacted from Gustav, totaling an operating capacity of 4.68 Bcf/d (26 percent of the capacity in Hurricane Ike’s path).  In addition, 26 plants have resumed operations at reduced or normal levels with a total operating capacity of 10.02 Bcf/d.  Five plants continue to report that they are capable to restart (totaling 2.76 Bcf/d operating capacity) once power is restored and/or upstream gas flow are sufficient.



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

 

 

Hurricane Ike’s Path
as of 0700 EDT, September 13, 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 & Ike
September 25, 2008 Report
September 24, 2008 Report
September 23, 2008 Report
September 22, 2008 Report
September 19, 2008 Report
September 18, 2008 Report
September 17, 2008 Report
September 16, 2008 Report
September 15, 2008 Report
September 14, 2008 Report
September 13, 2008 Report
September 12, 2008 Report
September 11, 2008 Report
September 10, 2008 Report
September 9, 2008 Report
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