Hurricane Rita idles refineries, oil and gas output

Bob Tippee
Editor

HOUSTON, Sept. 25 -- Twenty US refineries, all Gulf of Mexico oil production, and 75% of the gulf's gas output are idle the day after Hurricane Rita pounded ashore east of the Texas—Louisiana border early Sept. 24.

Shut down on Sept. 25 because of Rita or Hurricane Katrina, which made landfall between New Orleans and Gulfport, Miss., on Aug. 29, are 5.6 million b/d of refining capacity, 1.5 million b/d of oil production, and 10 bcfd of natural gas output.

That's roughly one third of the country's refining capacity, a fourth of its oil production, and a fifth of its gas output.

Much of the shut down production and processing equipment will have sustained no or minor damage and will be back online as soon as companies complete assessments and get workers back in place. Extent of the more lasting effects won't be known for at least several days.

Whatever its size and duration, Rita's disruption to US oil and gas supplies comes while oil and gas markets are still reeling from Katrina. Although public attention has been riveted on the immediate increase in gasoline prices, another challenge looms: wintertime supplies of natural gas and distillate heating oil.

Rita's aftermath
In the wake of Rita, nine of the idle refineries, representing a total of 2.3 million b/d of distillation capacity, are in the Houston and Texas City areas and are unlikely to have received much damage from the storm, which until a northward turn on Sept. 23 seemed headed directly for the Houston-Galveston area.

Four of the disabled refineries, three in Louisiana and one in Mississippi with a total of nearly 900,000 b/d of capacity, are Katrina victims, thought still to be weeks away from restart.

The remaining facilities are in areas most heavily damaged by Hurricane Rita and await assessments. In Texas they include plants operated by Motiva Enterprises LLC, 285,000 b/d, Total SA, 233,500 b/d, and Valero Energy, 255,000 b/d, in Port Arthur and Exxon Mobil Corp., 285,000 b/d, in Beaumont. In Louisiana, refineries in Rita's path are around Lake Charles: Citgo Petroleum Corp., 324,300 b/d, Conoco Phillips, 239,400 b/d, and Calcasieu Refining Co., 30,000 b/d.

Four refineries with capacities totaling about 675,000 b/d around Corpus Christi are operating at reduced rates but resuming normal operations, according to the Department of Energy. Capacities reported here are from DOE.

In addition to the refinery outages, the Seaway Crude Pipeline is shut down, and the Capline, which carries crude from the Louisiana Offshore Oil Port to Houston and the Midwest, is operating at 75% capacity. LOOP suspended offshore operations.

DOE reported that the Dixie, Explorer, Colonial, Longhorn, Magellan, and TEPPCO product pipelines are shut down or operating with various degrees of disruption. The Plantation products line is working, having suffered no effects from Rita.

The Texas ports at Houston, Freeport, Port Arthur, and Corpus Christi are closed. Petrochemical plants along the Texas coast also are closed.

Most of the more than 60 gas treatment and processing plants in the area threatened by Rita, from New Mexico to Alabama, had been shut down prior to the storm's landfall, according to DOE.

Most gas pipelines in the region also are idle because of the loss of gas supply.

Contact Bob Tippee at bobt@ogjonline.com.

Related Articles

US House panel grills PHMSA’s interim chief over pipeline safety delays

07/14/2015 Members of a US House Energy and Commerce subcommittee asked US Pipeline and Hazardous Materials Safety Administration Interim Executive Director S...

Sibur to expand gas processing in Western Siberia

07/14/2015 Russian conglomerate PJSC Sibur Holding, Moscow, plans to expand gas fractionation capacity by 1.4 million tonnes/year (tpy) at its Tobolsk-Neftekh...

Market seen balancing with OPEC at target

07/14/2015 Target-level production of crude oil by members of the Organization of Petroleum Exporting Countries would balance the oil market in 2016, accordin...

BG starts LNG shipment from Queensland Curtis CSG-LNG project’s Train 2

07/14/2015 BG Group PLC has loaded its first cargo of LNG from the second train of the Queensland Curtis coal seam gas-LNG (QCLNG) plant. The LNG was loaded o...

MARKET WATCH: Crude oil futures prices settle lower on Iran uncertainty

07/14/2015 Crude oil futures prices alternated between gains and losses in July 13 trading before settling lower on both the New York and London markets on un...

PHMSA issues state pipeline excavation damage prevention programs rule

07/14/2015 The US Pipeline and Hazardous Materials Safety Administration issued a final rule to establish the process for evaluating state excavation damage p...

EIA: US shale oil production to fall 91,000 b/d in August

07/13/2015 Crude oil production in August from seven major US shale plays is expected to decline 91,000 b/d to 5.36 million b/d, according to the US Energy In...

Halliburton, Baker Hughes agree to extend DOJ review of planned merger

07/13/2015 Halliburton Co. and Baker Hughes Inc. reached a timing agreement with the US Department of Justice’s Antitrust Division to extend DOJ’s review of H...

EIA’s estimates for state crude oil production to be helped by direct survey

07/13/2015 Understanding how crude oil production in US key states has been affected by recent changes in crude oil prices and drilling activity is of great i...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected