Daily status report on energy industry recovery efforts in the US Gulf

 

-- Tropical Storm Wilma was 235 miles south-southeast of Grand Cayman at 2 p.m. EDT on Oct 17 (1800 GMT) with maximum sustained winds near 50 mph. The storm was expected to turn west over the next 24 hours and could strengthen into a hurricane on Oct 18, according to the US National Hurricane Center. The agency's latest forecast track has Wilma brushing Mexico's Yucatan Peninsula before entering the southern Gulf of Mexico early on Oct 15. If that path is maintained, Wilma would cut through the central Gulf next week and made landfall eventually along the battered Gulf Coast.

-- Valero Energy on Oct 17 said its 250,000 b/d Port Arthur refinery was currently running at 75% of typical capacity and that it expected the facility to be at full rates by the end of this week. The refinery was idled ahead of Hurricane Rita and damaged by the storm. It was brought back online last week.

-- Royal Dutch Shell on Oct 17 said the 333,700 b/d Deer Park refinery near Houston was operating at normal rates following its restart after a pre-Hurricane Rita shutdown.

-- Lyondell-Citgo early on Oct 17 was performing a damage assessment of the fluid catalytic cracker at its 268,000 b/d refinery in Houston after an explosion and fire hit the unit on Oct 16, a company spokesman said. The spokesman told Platts there was no timetable for the return of the unit, which was hit by the blast as it was again attempting to restart in the aftermath of Hurricane Rita.

-- Hurricanes Katrina and Rita damaged so many links in the natural gas supply chain, from producing platforms to pipelines to processing plants, that before a full recovery is completed sometime next year, up to 711 Bcf of gas production will have been shut-in, the energy consultants in the Houston office of Wood Mackenzie said on Oct 17.

-- The Louisiana Department of Natural Resources on Oct 17 reported no increase over the weekend in oil and natural gas production from onshore and shallow-water wells hit by Hurricanes Katrina and Rita. The agency said an estimated 52,312 b/d of oil production, or 25.75% of the region's pre-storm output of 203,139 b/d had been restored. DNR put restored natural gas production at 756,600 Mcf/d, about 33.85% of the region's pre-storm output of roughly 2.235 Bcf/d. Both figures were unchanged from DNR's Oct 14 update.

-- The US Minerals Management Service said on Oct 17 in its daily production update in the wake of Katrina and Rita, that oil shut-ins were 996,291 b/d, or 66.42% of normal production of 1.5-mil b/d. On Oct 14, oil shut-ins were 1.009-mil b/d, or 67.26% of normal. MMS also said natural gas shut-ins as of Oct 17 stood at 5.498 Bcf/d, or 54.98% of normal output of 10 Bcf/d. On Oct 14, gas shut-ins were 5.647 Bcf/d, or 56.47% of normal.

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