USG oil production not back to normal 'for many months': Norton

Washington (Platts)--27Oct2005

It should take "many months" for US Gulf of Mexico oil and gas production
to return to normal levels, Interior Secretary Gale Norton said in prepared
testimony Thursday to the Senate Energy Committee.

     "Recovery is dependant on repairs to onshore facilities, offshore and
onshore transportation systems and offshore platforms," Norton said in her
statement. She noted that industry must conduct "necessary inspecitons" to
determine if repairs are required and, if necessary, repair any damage.

     "It is evident from reports received from industry to-date that this work
will take approximately several months to a year," Norton said.

     For example, the Interior Department estimates that some 30% of pipelines
have not been leak tested, and 60% of underwater/riser inspections have not
been completed.

     The oil and gas industry has already reported several billion dollars in
damages, and "we expect the figure to grow as inspections are completed,"
Norton said in the prepared testimony.

--Cathy Landry, cathy_landry@platts.com

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