Hurricane Petroleum Recovery Thread

[BoeingBoy]

With Rita fading away and recovery efforts beginning, I thought a new thread for recovery updates was in order.....

As of Sept 25:

* MMS reports today that as a result of damage from Hurricane Katrina and precautionary actions in advance of Hurricane Rita, shut-in oil production in the Gulf is currently at 1,501,863 barrels of oil per day. The shut-in oil production is equivalent to 100 percent of the normal daily oil production in the Gulf, which is currently approximately 1.5 million barrels of oil per day.

* 81.32 percent of 819 manned platforms and 68.66 percent of 134 rigs currently operating in the Gulf are evacuated.

* Four refineries damaged by Hurricane Katrina remain shut down, with combined refining capacity of 879,000 bbls/day.

* Seven refineries in the Lake Charles/Port Arthur area are shut down, with combined refining capacity of 1,715,700 bbls/day.

* Nine refineries in the Houston/Texas City area are shut down, with combined refining capacity of 2,291,850 bbls/day.

* Five refineries in the Corpus Christi area are either operating at reduced capacity or are restarting. The combined normal refining capacity is 706,126 bbls/day.

* Grand Total: 4,886,500 bbls/day of refining capacity is shut down and another 706,126 bbls/day of capacity is operating at reduced levels.

* Several pipelines shut down their systems as a result of Hurricane Rita. The primary reason for the service disruption was the evacuation of personnel and lack of product to transport as refineries in the Texas and Louisiana Gulf Coast area closed. Oil pipeline operators are in the process of getting personnel back to facilities to assess the situation. Once on site, personnel will perform safety inspections to determine if any physical damage has occurred. If no damage is detected, the primary requirement to resume normal operations will be reliable access to the electric grid and access to product to transport.

* Crude oil pipelines:

- Seaway Crude Pipeline from the Texas Gulf to Cushing, OK, has power restored and will be restarting shortly.

- Capline St. James, LA to Patoka, IL is operating at 75% capacity.

- Sun Pipeline Nederland, TX terminal is shut down and undergoing damage assessments.

- TEPPCO Crude from Texas City to Pasadena, TX is awaiting restoration of power.

* Product Pipelines:

- Explorer from LA to OH is operating using stored product, which will run out on 9/26. Operation beyond that will depend on product supply.

- Colonial operating with reduced capacity. Currently 5 pumping stations are without power.

- Longhorn from Houston west to NM/AZ operating with reduced capacity.

- Centennial System from Beaumont, TX to Creal Springs, IL is shut down.

- Magellan Pipeline serving TX/OK is partially operational, though sections are closed.

- Plantation from Baton Rouge, LA to Washington, DC sustained no damage and is operational.

- TEPPCO from Beaumont, TX to NY sustained no damage but is awaiting restoration of power.

* Ports:

- Louisiana Offshore Oil Port (LOOP) - Power outage; suspended offshore operations.

- Port of Houston closed – assessments being conducted.

- Port of Freeport - closed – assessments being conducted.

- Port Arthur - closed.

- Port of Corpus Christi - shut down – may open late 9/24.

- Mississippi River - reopened for daylight hours only.

Jim

 

[Busdrvr]

Good stuff Jim!
Thanks for taking the time to compile it.

 

[BoeingBoy]

Cut and Paste is sooooo taxing......

Jim

 

[BoeingBoy]

Recovery update for Tuesday, 9/26/05.....

* MMS reports today that as a result of damage from Hurricane Katrina and precautionary actions in advance of Hurricane Rita, shut-in oil production in the Gulf is currently at 1,527,630 barrels of oil per day. The shut-in oil production is equivalent to 100 percent of the normal daily oil production in the Gulf, which is currently approximately 1.5 million barrels of oil per day.

* I neglected to put it in yesterday's report, but as of today the cumulative shut-in oil production for the period 8/26/05-9/26/05 is 34,811,397 bbls, which is equivalent to 6.358 % of the yearly production of oil in the Gulf.

Refinery status:

* In the Port Arthur/Lake Charles area, the Citgo refinery is expecting to resume partial operations today (full capacity is 324,300 bbls/day). The remainder of those reported yesterday are still off-line.

* In the Houston/Texas City area, the Lydonell Citgo refinery is in the process of restarting (full capacity is 270,200 bbls/day), the ConocoPhillips refinery is restarting with full capacity expected by Thursday (full capacity is 229,000 bbls/day), and the Valero refinery may restart soon (full capacity is 83.000 bbls/day). Those remaining are still off-line.

* In the Corpus Christi area, all refineries are ramping up to full capacity.

* As before, the 4 refineries damaged by Katrina remain idle.

* In other refinery news, two Valero refineries (Lima, OH, and Memphis, TN) are operating at reduced levels.

* Totals - of 4,713,676 bbls/day of refinery capacity affected by Rita, 3,508,350 bbls/day remain shut down. 879,000 bbls/day affected by Katrina remain shut down.

Crude oil pipelines:

* the Seaway Crude Pipeline from the Texas Gulf coast to Cushing, OK, is back in operation.

* Capline from St. James, LA to Patoka, IL isoperating at 75% capacity.

* Sun Pipeline serving the Nederland, TX terminal remains shut down.

Refined product pipelines:

* Explorer from LA to OH resumed limited service early today from the company’s Pasadena and Houston, TX, facilities, which provide two-thirds of the company’s normal volumes. The company’s origin facilities at Lake Charles, La., and at Port Arthur, TX, are not yet ready to resume operations.

* Colonial has restarted its origin pipeline segments in Houston and Pasadena, Texas. The initial restart enabled the pipeline system to achieve 42 percent of its normal, mainline operational capacity from Houston.

* Plantation from Baton Rouge, LA to Washington, DC is operating.

* TEPPCO from Beaumont, TX to NY is operating at 45 percent capacity.

Ports:

* LOOP plans to restart operations today.

* Port of Houston is open for daylight hours only, 35 foot draft restriction, but no commercial traffic.

* Port of Freeport , TX is open for daylight hours only, 28 foot draft restriction, but no commercial traffic.

* Port of Corpus Christi is open.

* Port of New Orleans reopened the Lower Mississippi River, daylight hours only.

* The U.S. Coast Guard reported yesterday that in Louisiana, the following ports and
waterways remained closed: SabinePass, Lake Charles (Calcasieu ship channel), Baton Rouge, Morgan City, Fourchon, Houma, New Orleans, Venice, Plaquemines, St. Bernard Parish, Grand Isle, and Port of Shreveport.

Finally, some numbers from the EIA to put the Gulf Coast into perspective petroleum-wise:

* 28.5% of domestic off-shore crude oil production comes from the Gulf.

* 47.4 % of domestic refining capacity is in the Gulf Coast region.

* 60.4% of crude oil imports enter the U.S. thru Gulf Coast ports (including LOOP).

* 23.5% of crude oil imports enter thru ports in LA, AL, & MS.

* 8.5% of curde oil imports enter thru LOOP.

Jim

 

[BoeingBoy]

Recovery update for 9/27/05.

* MMS reports today that as a result of damage from Hurricane Katrina and precautionary actions in advance of Hurricane Rita, shut-in oil production in the Gulf is currently at 1,512,937 barrels of oil per day. The shut-in oil production is equivalent to 100 percent of the normal daily oil production in the Gulf, which is currently approximately 1.5 million barrels of oil per day.

* These evacuations are equivalent to 83.39 percent of 819 manned platforms and 64.93 percent of 134 rigs currently operating in the Gulf.

Refinery status:

* Port Arthur/Lake Charles:

- The Citgo refinery that was expected to restart did not - power outage.

- Seven refineries with a combined 1,715,700 bbls/day capacity remain shut down.

* Houston/Texas City:

- Of nine refineries, 6 are restarting, 2 are attempting to restart, and 1 is shut down. Of a combined 2,291,850 bbls/day capacity, 980,650 is shut down.

* Corpus Christi:

- all refineries are operating. Combined capacity is 706,126 bbls/day.

* The two Valero refineries in Lima, OH and Memphis, TN, are operating again.

* Katrina:

- The same 4 refineries remain shut down.

* Total of 3,575,350 bbls/day of refinery capacity is shut down with 2,696,350 due to Rita.

* Crude oil pipelines:

- Capline from St. James, LA, to Patoka, IL is operating at 80 percent of capacity.

- Sun Pipeline Nederland, TX, terminal is shutdown; performing assessment.

* Product pipelines:

- Colonial is operating at 55% capacity.

Ports:

- LOOP is operating at 100% capacity.

- Freeport, TX, is open with no restrictions.

- Houston for daylight hours only, over 40 ft. draft not authorized.

Jim

 

[SpinDoc]

* Four refineries damaged by Hurricane Katrina remain shut down, with combined refining capacity of 879,000 bbls/day.

* Seven refineries in the Lake Charles/Port Arthur area are shut down, with combined refining capacity of 1,715,700 bbls/day.

* Nine refineries in the Houston/Texas City area are shut down, with combined refining capacity of 2,291,850 bbls/day.

* Five refineries in the Corpus Christi area are either operating at reduced capacity or are restarting. The combined normal refining capacity is 706,126 bbls/day.

* Grand Total: 4,886,500 bbls/day of refining capacity is shut down and another 706,126 bbls/day of capacity is operating at reduced levels.

SpinDoc replies:

Jim, doesn't this just BEG the U.S. Govt. to get
involved and force these greedy oil companies
to spend some of their RECORD profits to build
refineries in the Midwest or upper West?

It's crazy. The secret is out now. The oil co's
have avoided building new refinery capacity
for years because they don't want their
profits to shrink with plentiful supplies on the
market. Plus, there is some evidence that
they have supported environmental groups
in their quest to prevent the building of new
refineries, all in the name of sickening profits.

Wake up call gentlemen. Time to do the right
thing for this country.

 

[BoeingBoy]

9/28/05 Update:

* The Department of Energy has completed delivery of the first cargo of Strategic Petroleum Reserve crude oil sold as a result of the on-line competitive sale earlier this month. The 550,000 barrel cargo of sweet crude intended for Marathon Petroleum was delivered from the Bryan Mound, Texas, site. Transfer of all of the contracted crude oil will continue in batches throughout October. In addition to the competitive sale of crude oil, the Strategic Petroleum Reserve also approved loans of crude oil of up to 13.2 million barrels to refiners whose deliveries were interrupted. Over six million barrels of oil have been delivered to date.

* The two SPR sites of West Hackberry (LA) and Big Hill (TX) remain without power due to Hurricane Rita. The sites may be out of power for 5-10 days and, therefore, are unable to drawdown crude oil.

* On Late Monday, the Department of Homeland Security in coordination with Department of Transportation’s (DOT) Maritime Administration, issued another Jones Act waiver. The waiver, which allows foreign ships to serve between U.S. ports in the movement of fuels, is effective until October 24. The DOT Federal Motor Carrier Safety Administration (FMCSA) also extended the driver-hours waiver for the nation until October 26.

* Last night the Environmental Protection Agency (EPA) extended waivers for the following areas: Houston/Galveston, Dallas/Forth Worth, TX, and Richmond, VA, to continue to use conventional gasoline in lieu of reformulated gasoline (RFG) until October 20. EPA also issued an RFG waiver for the St. Louis, MO, area until October 7. The Atlanta, GA, area received an extension on its low sulfur gasoline waiver until October 25. The Texas Commission on Environmental Quality was granted a waiver to delay the use of the Texas low-emission diesel until October 21.

* El Paso reports that all of its platforms in the Eastern Gulf of Mexico are now manned and have power restored. Production should resume soon.

* MMS reports today that as a result of damage from Hurricane Katrina and precautionary actions in advance of Hurricane Rita, shut-in oil production in the Gulf is currently at 1,511,715 barrels of oil per day. The shut-in oil production is equivalent to 100 percent of the normal daily oil production in the Gulf, which is currently approximately 1.5 million barrels of oil per day.

* These evacuations are equivalent to 72.40 percent of 819 manned platforms and 47.76 percent of 134 rigs currently operating in the Gulf. There are reports that as many as 18 Gulf rigs and 40 platforms may be missing, damaged and/or detached from their moorings. We will attempt to gain further clarity in the next situation report.

* Refinery Status:

- Port Arthur/Lake Charles: 7 refineries shut down with combined capacity of 1,715,700 bbls/day

- Houston/Texas City: 1 refinery shut down , 2 attempting to restart, 6 restarting resulting in a combined 980,650 bbls/day capacity reduction.

- Corpus Christi: All 6 refineries operational.

- The 4 refineries damaged by Katrina remain shut down.

- Total unavailable capacity is 3,575,350 bbls/day.

* Crude oil pipelines:

- Capline from St. James, LA, to Patoka, IL is operating at 80 percent of capacity.

- Sun Pipeline Nederland, TX has partial operation – Nederland terminal not operating.

* Refined product pipelines:

- Colonial is operating at 72% capacity. Full capacity expected later this week.

- Longhorn from Houston west to NM/AZ is partially shut down - update not available.

- Longhorn at Galena Park terminal (Houston) is shut down - update not available.

- Centennial System from Beaumont, TX, to Creal Springs, IL. - Shut down – no commercial power, assessment continues.

- Magellan Pipeline TX/OK is operational, portions closed- update not available.

- TEPPCO from Beaumont, TX to NY is operating at 45 percent capacity.

 

[BoeingBoy]

Update for Thursday, 9/29/05:

* Service restoration to the seven refineries served by Entergy in the Port Arthur and Lake Charles areas remains a priority following establishment of grid service to generation sources. Limited 230KV service into the Port Arthur area is projected within a few days, but the refineries are served from the 69KV system that has substantial structural damage. In the Lake Charles area, Entergy projects limited transmission service for restoration and clean up activities in a few days and start up capacity in a week to 10 days.

* In support of restoration activities in Texas, Secretary Bodman issued an order to authorize and direct CenterPoint Energy to temporarily connect and restore power to
Entergy Gulf States, Inc. Entergy, CenterPoint, TXU, and American Electric Power met yesterday to finalize a strategy for power restoration in the Entergy service area.

* According to MMS, 1,478,780 barrels of oil per day are currently shut-in which equates to 98.6 percent of the normal daily oil production in the Gulf. Evacuations are quivalent to 59.95 percent of 819 manned platforms and 26.87 percent of 134 rigs currently operating in the Gulf.

* According to MMS’s review of the evacuations, 35 platforms are destroyed while 16
platforms have extensive damage. Thirteen rigs went adrift, of which six are now grounded, and nine others have reported problems. The remainder are being re-manned, re-powered, or repaired. Approximately 2,900 platforms were in the path of Katrina and Rita. Eighteen deepwater facilities report no significant damage.

* ConocoPhillips reports that the company’s largest offshore asset in the Gulf of Mexico, Magnolia, has minimal damage and production is expected to resume shortly, contingent on resumption of operations at related onshore infrastructure such as pipelines and utilities. Initial assessments at three smaller fields have identified damage, but the production impact is not expected to be significant.

Refinery Status:

* Port Arthur/Lake Charles:

- There remain 7 refineries shut down with combined capacity of 1,715,700 bbls/day.

* Houston/Texas City:

- Seven refineries are in the process of restarting

- One refinery remains shut down with a capacity of 437,000 bbls/day

- Unconfirmed reports that one refinery that was restarting has shut back down - furthur information in tomorrow's update.

* Corpus Christi:

- All refineries operating and will be omitted in future reports unless there's a change.

* Including the 4 refineries that were damaged by Katrina, there is 3,031,700 bbls/day of refining capacity shut down.

* Refined product pipelines:

- Explorer from LA to OH is operational from Pasadena/Houston, TX, facilities to Chicago. IL. The company’s origin facilities at Lake Charles, La., and at Port Arthur, TX, have not yet resumed operations.

- Colonial is operating at 72 percent of capacity. No power at Lake Charles.

- Longhorn from Houston west to NM/AZ is supply constrained.

- Centennial System from Beaumont, TX, to Creal Springs, IL. is shut down – no commercial power. Generators secured for possible restart.

- Magellan Pipeline from TX to OK is operational but supply constrained.

- TEPPCO from Beaumont, TX to NY is operating at 45 percent capacity.

* Ports, LOOP, and the Mississippi are open, though restrictions apply in some cases. Furthur reports will be omitted unless there is adverse news.

Jim

 

[BoeingBoy]

Another day, another update - this for Friday, 9/30/05. For brevity, only changes from the last report will be given.

* According to MMS, 1,467,577 barrels of oil per day are currently shut-in which equates
to 97.8 percent of the normal daily oil production in the Gulf. Evacuations are equivalent to 57.5 percent of 819 manned platforms and 24.6 percent of 134 rigs currently operating in the Gulf.

* Lydonell Citgo Refinery in Houston, TX has confirmed restart - capacity 270,200 bble/day.

* Total refining capacity that remains shut down – 3,031,700 bbls/day.

* Colonial refined product pipeline is operating at 66 percent of capacity.

Jim

 

[WorldTraveler]

Jim,
do you know if there are certain refineries that specifically or predominantly produce jet fuel? Restoring refineries might not help airlines if they aren't the right ones.

 

[BoeingBoy]

WT,

I don't - that might be a question that jimntx could answer....

Jim

 

[SpinDoc]

WT,

I don't - that might be a question that jimntx could answer....

Jim

[post="307442"][/post]​

And yet we still see inaction from Congress
to coerce the oil companies into doing the
right thing.

What needs to happen NOW, is that Congress
needs to make a law that freezes gasoline
prices at a pre-determined maximum any
time the gulf coast refineries are threatened
by a hurricane. That might be enough of an
incentive to get these crackpots in the oil
biz to look to the midwest to build refineries.

The Weather Channel has decreed that we
are currently in a 30 year cycle where hurricanes
are going to be more frequent, and more
powerful. Both of those predictions bring
an urgency to move the refineries to a more
stable region of the U.S.

 

[BoeingBoy]

Update for Monday, 10/3/05....

* According to MMS, 1,391,926 barrels of oil per day are shut-in [an improvement of about 90,000] which equates to 92.80 percent of the normal daily oil production in the Gulf [an improvement of about 5%]. Evacuations are equivalent to 57.5 percent of 819 manned platforms and 24.6 percent of 134 rigs currently operating in the Gulf.

* The cumulative shut-in oil production for the period 8/26/05-10/3/05 is 45,119,329 bbls, which is equivalent to 8.241 % of the yearly production of oil in the Gulf (approximately 547.5 million barrels).

Refineries:

* In the Port Arthur/Lake Charles area, 7 refineries remain shut down. One, the ConocoPhillips refinery at West Lake, LA, is estimating restart in mid-October. A second, the Valero (Premcor) refinery at Port Arthur, TX, estimates 2 weeks to one month for repairs and restart.

* In the Houston/Lake City area, news is better. Of the 9 refineries, three are operating at full capacity - Valero at Houston, Marathon at Texas City, & ConocoPhillips Sweeny - with a combined capacity of 384,000 bbls/day. One refinery - Valero at Texas City - with a capacity of 209,950 bbls/day, is operating at reduced capacity.

* The four refineries damaged by Katrina remain shut down.

* Total shut down capacity is 3,031,700 bbls/day.

* Outside the damage area, Valero reports its Krotz Springs, LA, and Ardmore, OK, refineries are currently at minimum rates due to crude availability and pipeline issues. The Krotz Springs refinery is currently running at 48,000 BPD vs. 85,000 BPD and the Ardmore refinery is running at 49,000 BPD vs. 85,000 BPD. Crude production from the Gulf is shut in, which is restricting crude availability through the ExxonMobil pipeline that feeds the Krotz Springs refinery. The Ardmore refinery is at minimum rates as it awaits crude from the Nederland pipeline, which was shut down due to power outages in the area.

* According to CNBC this afternoon, jet fuel spot prices FOB Gulf Coast continue to rise and there is some worry that refiners may declare force majure to void delivery contracts. They gave no other details.

Jim

 

[a320av8r]

"* According to CNBC this afternoon, jet fuel spot prices FOB Gulf Coast continue to rise and there is some worry that refiners may declare force majure to void delivery contracts. They gave no other details."

That would help us by leveling the playing field with Southwest, still very little solace. Look for more airlines shutting down. Thank God we've finished our merger and, hopefully, can weather this current storm.

 

[ClueByFour]

That would help us by leveling the playing field with Southwest, still very little solace. Look for more airlines shutting down. Thank God we've finished our merger and, hopefully, can weather this current storm.

[post="308358"][/post]​

If it's only jet fuel, it'll only hurt LUV in the very short term. They actually hold heating oil futures--I don't think you can even buy jet fuel hedges.