As more domestic U.S. natural gas production shifts from offshore fields in the Gulf of Mexico (GOM) to onshore basins, potential natural gas supply disruption risks have shifted as well. For many years, tropical storms and hurricanes in the GOM occurring in the summer and fall were the principal weather-related threat to natural gas production. Tropical Storm Lee in early September 2011 and the hurricanes of 2005 and 2008 illustrate that weather can reduce natural gas supplies, at least for short durations, by 2.5 to over 12 billion cubic feet per day (Bcf/d). Much colder than normal weather in the Southwestern United States in early February 2011 curtailed over 7 Bcf/d of natural gas production due to well freeze-offs (see chart); this disruption rivaled losses from major summer storms.
Although there can be similarities in initial supply curtailment, there are important distinctions between well freeze-offs and hurricane disruptions.
Event | Estimated Peak Supply Disruption (Bcf/d) |
Hurricane Dennis | 6.1 |
Hurricanes Katrina and Rita | 12.2 |
Hurricanes Gustav and Ike | 9.5 |
February Freeze-offs | 7.5 |
Tropical Storm Lee | 2.5 |
Source: U.S. Energy Information Administration, based on Bentek Energy, LLC.
Note: Values are calculated using the average daily dry-gas production for the 30-day period that preceded the event minus the lowest daily dry-gas production during the event. |
Tags: natural gas, offshore, production/supply, weather