Weekly status report on the energy industry in the US Gulf

 

-- Crude output from the Gulf of Mexico may struggle to reach its 1.5-mil b/d level prior to Katrina and Rita during all of 2006, the International Energy Agency said Thursday. IEA said the short-term recovery profile for the Gulf in the aftermath of the hurricanes was unchanged, but that there were "indications that the impact running through 2006 could be deeper and lasting than previously believed."

-- ExxonMobil Wednesday completed the restart process at its 348,500 b/d Beaumont, Texas, refinery and said the facility was operating "normally." The refinery was shut down Sep 23 ahead of Rita, which made landfall the next day. ExxonMobil said Oct 18 that it was beginning the refinery's restart, adding that it expected the process to take around two weeks to complete.

-- Shut-in US Gulf of Mexico output will gradually decline through March 2006, when shut-in crude volumes should fall to 353,000 b/d, or 22.6% of pre-hurricane production levels, and shut-in gas volumes should fall to 2.1 Bcf/d, or 20.6% of prehurricane levels, the Energy Information Administration said Tuesday in its Short-Term Energy Outlook. Onshore Louisiana oil and gas production, which was less than 50% of capacity at end-October, was expected to be fully restored by the end of March, EIA said. Refinery capacity should be fully restored to pre-Katrina levels by end-February, the agency added.

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