Did Gustav Damage Oil Rigs?
September 2nd 2008 23:31
Gustav went through and we were lucky. The trip aross Cuba knocked Gustav down from a category four hurricane with winds of 145 mph to a hurricane with winds of 115 mph. It not only missed LOOP by seven miles, but made landfall about 60 miles west of New Orleans.
Here's an interesting chart of wind, gust and pressure, that shows how Cuba affected the hurricane:
We don't know yet of any damage to our oil rigs, but we do know that "according to data provided by GOMExplorer.com, there were a total of 74 offshore rigs that were affected by Hurricane Gustav."
In today's trading, crude oil dropped to $105, before closing at $110.23; still down $5.23 (see chart). This morning Kinetic Analysis Corporation (KAC) was forecasting a shortfall of 17 million barrels of oil (MMBBL) for the month of September.
We expect production to be back up to to 95% by the end of the year. We expect a long-term production loss of approximately 3%, since Gustav's swath went through some areas that Ivan, Katrina, and Rita missed, and older, less productive wells that suffered damage will probably not be restored to operation.
Maybe, we aren't totally out of the woods!
Here's an interesting chart of wind, gust and pressure, that shows how Cuba affected the hurricane:
We don't know yet of any damage to our oil rigs, but we do know that "according to data provided by GOMExplorer.com, there were a total of 74 offshore rigs that were affected by Hurricane Gustav."
While unofficial reports have trickled in stating that damage, if any, is minimal; rig contractors are currently conducting fly-over inspections of their fleets. Official damage reports are expected in a few days.
In today's trading, crude oil dropped to $105, before closing at $110.23; still down $5.23 (see chart). This morning Kinetic Analysis Corporation (KAC) was forecasting a shortfall of 17 million barrels of oil (MMBBL) for the month of September.
We expect production to be back up to to 95% by the end of the year. We expect a long-term production loss of approximately 3%, since Gustav's swath went through some areas that Ivan, Katrina, and Rita missed, and older, less productive wells that suffered damage will probably not be restored to operation.
Maybe, we aren't totally out of the woods!
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