The U.S. energy industry on Tuesday was preparing for a major hurricane strike, cutting crude production at a rate approaching the level of 2005's Hurricane Katrina and halting oil refining at plants along the Texas-Louisiana coast.
HOUSTON - The U.S. energy industry on Tuesday was preparing for a major hurricane strike, cutting crude production at a rate approaching the level of 2005’s Hurricane Katrina and halting oil refining at plants along the Texas-Louisiana coast.
Oil producers on Tuesday had evacuated 310 offshore facilities and shut 1.56 million barrels per day of crude output, 84% of Gulf of Mexico’s offshore production, near the 90% outage that Katrina brought 15 years ago. The impact on refineries so far is less than Hurricane Harvey, whose drenching rains took down nearly one quarter of U.S. refining capacity three years ago.
“There will be a significant storm surge from Galveston to the Sabine River,” an area encompassing some of the region’s largest refineries, said DTN’s Kerr. “There are ideal conditions in central and west Gulf for rapid intensification.” Motiva Enterprises, Total SA and Valero Energy began cutting operations at their Port Arthur, Texas, refineries, according to people familiar with the matter.
FILE PHOTO: The Exxon Mobil Beaumont Polyethylene Plant is seen during tropical storm Harvey in Beaumont, Texas, U.S. August 28, 2017. REUTERS/Jonathan Bachman/File Photo
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