236 MBOPD, 568 MMcf/day offline

Production is beginning to come back online after Hurricane Harvey, according to today’s assessment from the BSEE.

Based on reports from operators, the BSEE estimates that personnel remain evacuated from 94 production platforms, 12.75% of the total. This is eight less than were shut down yesterday, when 102 were offline.

This has corresponded to increasing production, as operations begin to return to normal. About 236 MBOPD is currently offline, 13.5% of normal production. Gas projects are having more difficulty restarting, as the 568 MMcf/d that is still shut in represents 17.6% of expected production.

Rigs remain unchanged, with five non-dynamically positioned rigs evacuated and no dynamically positioned rigs moved off location.

Gasoline prices up 35%

The effects of Harvey are rippling outward, beyond the path of the storm itself. Many refineries are still offline, which is creating major disruptions in refined products markets. Gasoline futures have risen sharply in the past two weeks, rising to the highest levels in more than two years. Prices began rising on the 21st, as the storm began to approach. According to Bloomberg, gasoline closed that day at $1.58/gal. Since then, prices have risen by 35%, reaching $2.14/gal in trading today.

According to IHS, 3.3 MMBBLPD of distillation capacity is currently offline, with another 2.2 MMBBLPD either presumed idle, operating at severely reduced rates or still under threat. This represents over 30% of the total U.S. refining capacity.

The shutdown of such a large portion of U.S. refining has affected other operations. According to Bloomberg, Colonial Pipeline, the largest gasoline conduit in the country, was forced to shut down parts of its main diesel line in late Wednesday. The pipeline plans to halt a part of its gasoline line today due to the shutdown of such a large portion of U.S. refining capacity.

It is uncertain when things will begin to return to normal, as companies are still assessing when restarts may begin. According to IHS, the four refineries near Corpus Christi each plan to begin restart operations this week, representing 800 MBBLPD of capacity. However, recovery for Houston and Beaumont-Port Arthur markets is less certain. Waters have not yet receded in many locations, preventing damage assessment, much less restarts.

Harvey has dissipated to a tropical depression, and continues to move Northeast through Louisiana and Mississippi. Fortunately, the forecast for Houston over the next few days calls for sunshine, which should assist recovery efforts.

Oil & Gas Operations Begin to Resume after Harvey Departs Texas

Source: AccuWeather


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