Interior's Norton: Slow rebound for offshore oil, gas ~ 90 % & 63 %... / oil/ NG ...offline yet

MarketWatch ^ | 10/04/05 3:09pm | William L. Watts

[Ernest_at_the_Beach]

Interior's Norton: Slow rebound for offshore oil, gas By William L. Watts
​ ​​​​WASHINGTON (MarketWatch) -- Damage to onshore facilities and other bottlenecks created by Hurricane Katrina and Hurricane Rita have slowed the recovery of offshore oil and natural gas production in the Gulf of Mexico, Interior Secretary Gale Norton said Tuesday. Figures released by the department's Minerals Management Service showed that 90% of oil production and 72% of natural gas production in the Gulf remains off line. The agency said that Hurricane Rita destroyed a total of 63 offshore platforms in the Gulf, and damaged 30 fixed platforms.td>

[Ernest_at_the_Beach]

fyi

[Ernest_at_the_Beach]

Should have been 72% of Natural Gas production is still offline....and 63 platforms were damaged.

[MNJohnnie]

Current Energy Prices-It would appear the Market insiders don't know about this report.

_____________________PETROLEUM ($/bbl)
____________________PRICE* CHANGE % CHANGE TIME
Nymex Crude Future ___63.90 -1.57 -2.40 10/04
IPE Crude Future _____61.22 -1.58 -2.52 15:09
Dated Brent Spot _____60.10 -1.86 -2.99 15:09
WTI Cushing Spot _____63.50 -1.97 -3.01 14:01

[WOSG]

I know about ... nervous but remaining short.
Basically, the bigger story is the demand destruction from the high prices, and it proves the high prices are unsustainable. At these prices, demand softening will more than make up for any lost production.

while a lot of GOM production is still offline, it is mostly not due to permanent/long-term damage, but simply lack of power to onshore facilities to move the stuff. So the corner will be turned soon...

http://tonto.eia.doe.gov/oog/special/eia1_katrina.html

[thackney]

Should have been 72% of Natural Gas production is still offline....and 63 platforms were damaged.

There are over 6,000 platform in the Gulf of Mexico.
Gulf of Mexico Facts Database

Do you have a link showing 72% NG production offline?

[thackney]

I am a little slow this morning. I reread the article at the top. Sorry.

[Ernest_at_the_Beach]

OK, I know the morning slowness very well.

[thackney]

A little additional information.

Interior Secretary Gale Norton Reports on Gulf of Mexico Energy Status
October 4, 2005

except:

Of the 4,000 platforms that the MMS administers, 3,050 platforms were in the path of Hurricanes Katrina and Rita. The preliminary damage assessment indicates that 108 of the older “end of life” facilities not built to MMS’ upgraded design standards were destroyed. They account for only 1.7% of the Gulf’s oil production and 0.9% of the Gulf’s gas production. Another 53 platforms suffered significant damage. As a result, only a very small percentage of production is expected to be permanently lost. Major new facilities withstood the storms better, with only one major facility destroyed and four receiving significant damage. Repairs are already underway on the damaged facilities, but a substantial portion of production is expected to require several months to resume. “Those offshore facilities that withstood the storms best were those constructed to the 1988 MMS upgraded design standards,” said Norton. “Of all of the facilities constructed after the 1988 upgraded standards, only one platform was significantly damaged. We are currently working to determine whether that damage was a result of the storm itself or whether another facility collided with it.”