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Most GOM Production Shut-In as Isaac nears SE Louisiana as Hurricane
Rig Zone ^ | August 28, 2012 | Karen Boman|

Posted on 08/28/2012 11:17:16 AM PDT by thackney

Seventy-eight percent of U.S. Gulf of Mexico oil production and almost half of U.S. Gulf natural gas production has been shut in as Tropical Storm Isaac is set to make landfall as a Category 1 hurricane late Tuesday or early Wednesday.

Anadarko Petroleum Corp. reported Tuesday that production continues at its operated Boomvang and Nansen tension leg spars in the western Gulf, but the company evacuated Monday all non-essential workers from these platforms as precaution.

The company in total has evacuated approximately 195 workers from its Gulf of Mexico operations. Anadarko has evacuated all workers from and shut in production at its operated facilities in the eastern and central Gulf, including Independence Hub, Constitution, Marco Polo, Red Hawk, Neptune and Gunnison.

Australia-based Petsec Energy said Tuesday it has shut in production at its Main Pass 19/18 and Chandeleur 31/32 offshore gas fields and evacuated workers from these fields ahead of Isaac.

Tropical Storm Isaac is expected to strengthen into a Category 1 hurricane as it makes landfall over southeastern Louisiana on the anniversary of Hurricane Katrina's landfall in 2005, but is expected to begin slowly weakening thereafter, the National Hurricane Center (NHC) reported at 10 a.m. Central Standard Time Tuesday.

Isaac was moving through the Gulf at just below hurricane strength, NHC reported Tuesday morning, moving northwest at near 10 mph, with maximum sustained winds of nearly 70 mph.

A hurricane warning is in effect for the Gulf Coast from east of Morgan City, La., to the Mississippi-Alabama border, including New Orleans, and a hurricane watch is in effect from Intracoastal City, La., to Morgan City, La. A tropical storm warning is in effect for the Mississippi-Alabama border, including Destin, Fla.; Morgan City, La.; and Cameron, La.

No Major Onshore, Offshore Damage Expected to O&G Infrastructure No major onshore or offshore damage to energy infrastructure is anticipated from Isaac, according to an Aug. 28 research note from Tudor Pickering Holt Energy Research.

"The slow forward motion is likely to cause flooding inland but should not create long term impact to oilfield operations," said Tudor Pickering Holt in the note.

The upgrades to design standards for Gulf production platforms made in response to Hurricanes Katrina, Rita and Ike mean that platforms are better prepared to face a large hurricane, said Satish Nagarajaiah, professor of civil engineering and mechanical engineering at Rice University in Houston, told Rigzone in an interview Monday.

Operators implemented other lessons from Katrina and Rita into their offshore evacuation processes and shut-in procedures as well. The Deepwater Horizon incident in April 2010 has also impacted operations, with significant improvements in equipment to allow for quick responses to equipment failure, Nagarajaiah said.

Isaac is expected to generate a large storm surge expected across a large portion of the Gulf Coast and as far as Illinois and the Carolinas, with rainfall expected to reach over 15 inches in local areas near New Orleans.

"The risk of onshore power outages combined with offshore disruptions suggested a period of some disruptions to crude oil production and refinery operations," according to an Aug. 28 analyst note from GHS Research.

West Texas Intermediate (WTI) and Brent crude prices eased on news that Isaac might become a weaker system, resulting in fewer disruptions than feared, GHS noted. WTI prices backed off of the $97 handle to trend at approximately $95.50 in late Monday electronic trading, GHS said.

Brent prices also declined from highs seen in trading late Sunday, abandoning the $115 handle in favor of $112, GHS reported.

Prices for the November natural gas contract traded lower on Monday, opening at $2.970 and closing at $2.865, indicating significant doubts about Isaac's ability to sufficiently disrupt gas output in the near term to offset the gas market supply glut, GHS said.

TOPICS: News/Current Events
KEYWORDS: energy; naturalgas; offshore; oil

1 posted on 08/28/2012 11:17:22 AM PDT by thackney
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To: thackney

Blarg. I’d better get gas in the van before the hysteria-driven price spike.

2 posted on 08/28/2012 11:19:34 AM PDT by Tax-chick (Now a hit television series starring Judi Dench!)
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To: thackney

The Gulf of Mexico produces 20% of the US domestic oil production. 78% of the Gulf production is ~15% of the US production.

US Crude Oil Production

3 posted on 08/28/2012 11:20:22 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney
Gasoline went up here in W. Michigan by 21 cents/gal today between 11am & 1pm. I assumed it would be over $4/gal by Thursday, but it's now already $4.09. I missed by two days.

The labor day screwing will raise it some more.

4 posted on 08/28/2012 11:45:34 AM PDT by ASA Vet (Natural-born citizens, are those born in the country, of parents who are citizens. De Vattel)
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August 28, 2012- Gulf of Mexico Oil and Gas Activities are Being Monitored by Hurricane Response Team

BSEE Hurricane Isaac Activity Statistics: August 28, 2012


NEW ORLEANS — Offshore oil and gas operators in the Gulf of Mexico are evacuating platforms and rigs in the path of Hurricane Isaac. The Bureau of Safety and Environmental Enforcement (BSEE) Hurricane Response Team is activated and monitoring the operators’ activities. The team will continue to work with offshore operators and other state and federal agencies until operations return to normal and the storm is no longer a threat to Gulf of Mexico oil and gas activities.

Based on data from offshore operator reports submitted as of 11:30 a.m. CDT today, personnel have been evacuated from a total of 503 production platforms, equivalent to 84.4 percent of the 596 manned platforms in the Gulf of Mexico. Production platforms are the structures located offshore from which oil and natural gas are produced. Unlike drilling rigs, which typically move from location to location, production facilities remain in the same location throughout a project’s duration.

Personnel have been evacuated from 49 rigs, equivalent to 64.47 percent of the 76 rigs currently operating in the Gulf. Rigs can include several types of self-contained offshore drilling facilities including jackup rigs, submersibles and semisubmersibles.

As part of the evacuation process, personnel activate the applicable shut-in procedure, which can frequently be accomplished from a remote location. This involves closing the sub-surface safety valves located below the surface of the ocean floor to prevent the release of oil or gas. During previous hurricane seasons, the shut-in valves functioned 100 percent of the time, efficiently shutting in production from wells on the Outer Continental Shelf and protecting the marine and coastal environments. Shutting-in oil and gas production is a standard procedure conducted by industry for safety and environmental reasons.

From operator reports, it is estimated that approximately 93.28 percent of the current daily oil production in the Gulf of Mexico has been shut-in. It is also estimated that approximately 66.7 percent of the current daily natural gas production in the Gulf of Mexico has been shut-in. The production percentages are calculated using information submitted by offshore operators in daily reports. Shut-in production information included in these reports is based on the amount of oil and gas the operator expected to produce that day. The shut-in production figures therefore are estimates, which BSEE compares to historical production reports to ensure the estimates follow a logical pattern.

After the hurricane has passed, facilities will be inspected. Once all standard checks have been completed, production from undamaged facilities will be brought back on line immediately. Facilities sustaining damage may take longer to bring back on line. BSEE will continue to update the evacuation and shut-in statistics at 1:00 p.m. CDT each day as appropriate.

Total Percentage of GOM
Platforms Evacuated 503 84.4%
Rigs Evacuated 49 64.47%
Total shut-in Percentage of GOM Production
Oil, BOPD Shut-in 1,287,275 93.28%
Gas, MMCF/D Shut-in 3,001.52 66.7%

This survey information is reflective of 79 companies’ reports as of 11:30 a.m. CDT today.

5 posted on 08/28/2012 12:09:35 PM PDT by thackney (life is fragile, handle with prayer)
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To: ASA Vet

Gas went up about $.20/gal here since the last time I was out ... mid-day yesterday, I suppose. I was going to stop then, but the baby was grumpy and I decided to wait.

6 posted on 08/28/2012 1:53:58 PM PDT by Tax-chick (Now a hit television series starring Judi Dench!)
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To: Tax-chick

The local corner kwik-e-mart went up around 17 or cents today here in Columbia.

7 posted on 08/28/2012 3:20:34 PM PDT by wally_bert (There are no winners in a game of losers. I'm Tommy Joyce, welcome to the Oriental Lounge.)
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