Reduced offshore share in U.S. oil and healthy gas prolongation lowers risk from hurricanes

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Offshore appetite prolongation in a Gulf of Mexico has gifted comparatively teenager disruptions since of pleasant storms and hurricanes in new years, and a National Oceanic and Atmospheric Administration (NOAA) has likely a below-normal 2015 whirly deteriorate in a updated Atlantic Hurricane Season Outlook, expelled on Aug 6.

Image credit: U.S. Energy Information Administration

Image credit: U.S. Energy Information Administration

Hurricane-related risk to sum U.S. wanton oil and healthy gas prolongation has decreased over new years as a share of sum U.S. prolongation imagining in a Gulf of Mexico has declined sharply. In 2003, 27% of a nation’s wanton oil was constructed in a Gulf of Mexico; by 2014, that share had declined to 16%. The Gulf of Mexico’s share of healthy gas prolongation has also declined from a high of 26% in 1997 to 5% in 2014.

This decrease in a Gulf of Mexico’s share of prolongation has reduced a disadvantage of U.S. wanton oil and healthy gas supply to hurricanes. Based on NOAA’s outlook, EIA estimated in a Jun Short-Term Energy Outlook that storm-related disruptions in a Gulf of Mexico during a 2015 whirly deteriorate would sum 9.7 million barrels of wanton oil and 15.9 billion cubic feet of healthy gas, or 3.5% and 2.8% of sum Gulf of Mexico oil and healthy gas production, respectively, and even smaller percentages of sum U.S. production. No wanton oil or healthy gas prolongation in a Gulf of Mexico was close in during a 2014 whirly season, and EIA estimated a 14% luck that prolongation during a stream whirly deteriorate will also be unaffected.

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Image credit: U.S. Energy Information Administration

Strong storms are still able of causing poignant prolongation outages. Hurricane Katrina, that done landfall on a U.S. Gulf Coast 10 years ago Saturday, and Hurricane Rita, distinguished reduction than a month after Katrina, close down roughly all offshore healthy gas and wanton oil prolongation for several days, with prolongation remaining during reduced levels for months after a hurricanes. In Sep 2008, Hurricanes Gustav and Ike close down roughly all prolongation in a Gulf of Mexico. Even if a offshore rigs are not directly in a projected trail of a hurricane, these rigs might be evacuated as a precautionary measure.

The Gulf Coast is also home to about half of U.S. enlightening capacity, and several healthy gas estimate and placement comforts that could also be influenced by serious weather. However, high levels of wanton oil inventories, both domestically and globally, could lessen a supply impacts of weather-related disruptions. Similarly, natural gas estimate ability has been combined in areas over a Gulf Coast in new years, alleviation a intensity outcome of storm-related estimate outages.

Energy infrastructure in other areas of a eastern United States is also receptive to hurricane-related disruptions. Hurricanes Irene (2011) and Sandy (2012) caused endless repairs to appetite delivery and placement lines in a Mid-Atlantic and Northeast states. In further to approach impacts to millions of electricity customers, a repairs to a appetite infrastructure temporarily close down some petroleum enlightening capacity, healthy gas processing, and placement terminals.

To assistance analysts consider intensity charge impacts along a Gulf Coast, EIA maintains an appetite disruptions page and a Gulf of Mexico fact sheet. The map contains information on appetite infrastructure and real-time charge information. The fact piece combines this map with some-more minute information on wanton oil and healthy gas prolongation in a region.

Source: EIA