API says Hurricane Rita damage is not 'as bad as we feared'

Washington (Platts)--25Sep2005

The American Petroleum Institute said Sunday Hurricane Rita caused less
damage to oil and gas infrastructure than anticipated. 
     While damage assessment is continuing or just getting under way, "it 
appears the damage isn't anything as bad as we feared it might be," he said,
noting that power outages in the region will complicate recovery efforts.
     Refineries in the Port Arthur area took the brunt of the storm, he said.
Valero reported significant damage at its 250,000 b/d plant, and Shell
reported wind damage at the Motiva 275,000 b/d refinery. ExxonMobil reported
some damage at its 557,000 b/d Baytown plant, although it did not appear to be
severe, the API spokesman said. Motiva is a 50-50 joint-venture of Royal Dutch
Shell and Saudi Refining.
     The Energy Department is "cautiously optimistic" about damage at Houston 
area refineries, he said. 
     Pipelines appeared to have escaped significant damage. Offshore companies
could have some crews back on platforms as early as Sunday or Monday, the
spokesman said. Offshore facilities were evacuated ahead of the storm
approached. 
     On Saturday, the Minerals Management Service reported 100% of oil and
74.8% of natural gas production was shut-in in the US Gulf. MMS said 1.501-mil
b/d of oil output was curtailed, while natural gas shut ins climbed to 7.488
Bcf/d versus normal production of 10 Bcf/d in the Gulf.    
      Some nine mobile drilling units were reported adrift, "but we know where
they are," the spokesman said. It is also likely that offshore facilities in
shallow waters suffered some damage, he added.

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