Tropical Storm Karen Shuts Gulf Oil Production

Posted by: : Shayne HeffernanPosted on: October 3, 2013 Tropical Storm Karen Shuts Gulf Oil Production

Tropical Storm Karen Shuts Gulf Oil Production

Anadarko Petroleum Corp said it halted production at its Neptune platform, with capacity to produce up to 14,000 barrels per day (bpd) of oil and 23 million cubic feet per day of natural gas.

Chevron and Royal Dutch Shell also were evacuating some workers, but said production was not affected.

Chevron did not say which installations were being partially evacuated, but all four of its platforms were in the projected path of the storm. Those include Tahiti, which can produce up to 125,000 bpd of oil and 70 million cubic feet a day of natural gas.

Shell also did not identify affected platforms, but five of the company’s six producing installations were in the storm’s projected path as well as its newest platform, Olympus, which was anchored in the Gulf in August. It is slated to start up next year.

Anadarko was also evacuating workers not essential to production from Neptune and other platforms, including the natural gas-only Independence Hub, with capacity to produce up to 1 billion cubic feet of gas per day.

The Independence Hub is at the easternmost part of the Gulf where oil and gas producers can operate, about 185 miles (297 km) southeast of New Orleans. It and much of Chevron, Shell and BP Plc’s operated platforms are in a Gulf area known as the Mississippi Canyon, which is home to much of the basin’s energy infrastructure.

BP said on Thursday it was continuing evacuations of some workers, but no production had been shut. ConocoPhillips, which operates a single platform far west of Mississippi Canyon, said on Thursday it did not expect any impact from Karen.

Onshore, a crude distillation unit at Chevron’s Pascagoula, Mississippi refinery with capacity of 210,000 bpd was shut early on Thursday, market intelligence service Genscape said, though the company did not confirm the stoppage or say if it was storm-related.

Phillips 66, Shell and Motiva Enterprises also said their refineries in Texas and Louisiana were monitoring the storm.

Destin Pipeline Co LLC on Thursday declared force majeure because it was unable to provide natural gas services from its offshore Gulf of Mexico receipt points due to Tropical Storm Karen. The pipeline receives output from some BP platforms, including Thunder Horse.

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Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.
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