The U.S. Gulf Coast oil industry is struggling with unsustainable Ida recovery

Hurricane Norse production in Louisiana, USA, on August 30, 2021, flooding. REUTERS / Devika Krishna Kumar / File Photo

HOUSTON, Sept. 3 (Reuters) – Five days after the storm ended, labor, energy and fuel shortages were battling most of the Gulf Coast’s oil and gas production offline Friday to fight the U.S. Navy’s engine.

After the post-storm review, the ports reopened, workers returned to the beach facilities, and some pipelines resumed. But the damage to the facilities delayed the construction of large facilities, making it harder to refuel. Power shortages on the beach put some filters aside.

Half of the displaced communities were not captured and 93% of oil production and 89% of natural gas were offline, according to government data. Some wells in the Gulf of Mexico could shut down as much as a fifth of the United States for weeks, analysts say.

Emergency oil

The White House has teamed up with the National Strategic Petroleum Reserve (SPR) refinery Exxon Mobile and Plasid Filters to produce petrol to alleviate regional oil shortages by providing 1.8 million barrels of crude oil.

An oil and gas pipeline from three major oil fields was closed on Friday. According to government figures released on Friday, 1.7 million barrels of oil and 1.99 billion cubic feet of natural gas were offline.

The U.S. deep-sea export terminal near the site of the hurricane has also been closed, according to the Louisiana Coast Guard. Analysts say prolonged cuts could hamper US crude oil exports to Asia.

“If the pipelines from the Gulf are not ready in the middle of the month, they can go to the SSS to ask for the courage,” said Robert Campbell, head of the Petroleum Products Research Center. This will be a long recovery.


Chevron was unharmed and returned his staff to six by Friday. Two ENB.TO beaches were ready to return to service.

But Royal Dutch oil and gas giant RDSa.L, Mexico’s largest oil and gas producer, says it has recovered only 20% of its production.

Ida West Delta-143 said it had damaged the Gulf’s oil pipeline, which connects the country’s eight largest oil reserves. The extent of the damage was not immediately clear. Read more

“The situation in the West Delta is an indication of how slow the recovery will be at this time,” said Aaron Brady, an advisor to HS Marcit. We expect large amounts of oil to be offline for some time, perhaps weeks.

CoreLogic estimates that damage to overseas oil companies could cost insurers about $ 1 billion. Read more

Restoring ports

Most of Louisiana’s ports, including New Orleans Harbor, have reopened, but Port Forchon, a harbor rehabilitation center, reopened on Thursday for daylight-only operations. Analysts say widespread damage to Port Forchon has affected shipping on coastal platforms.

Louisiana’s largest utility, Entergy Corporation (ETN), took action late Friday to remove transmission lines that would prevent ships from accessing oil refineries in the Mississippi River west of New Orleans. The company did not immediately respond to requests for comment.

About 820,000 homes and businesses in the state have no power, according to Two-thirds of gas stations from New Orleans to Baton Rouge remain without gas, according to Gas Trainer.

Tony Odak, General Manager of Stone Oil Distribution, which supplies oil to overseas producers, said it has started receiving supplies from the ports of Texas at Arthur and Galveston.

“We are now getting back outside the Mississippi River,” Odak said.

Reported by Mariana Paraga, Liz Hampton, Sabrina Valle and Araty Nyir; Writing by Gary Mac Williams; Edited by Richard ull Lynn, Louis Sky, David Gregory and Cynthia Osterman

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