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Production loss mounts from recent hurricanes Minerals Management Service orders inspections on reports of severe damage to Gulf of Mexico offshore platforms, pipelines Ray Tyson Petroleum News Contributing Writer
Hurricanes already have taken an unprecedented toll on Gulf of Mexico oil and gas production. Worse, the shortfall continues to mount with well over half of daily production shut-in more than two months after offshore platforms and drilling rigs were evacuated ahead of the first storm. Moreover, damage caused by the hurricanes evidently was so severe federal regulators have now ordered leaseholders and operators to conduct detailed inspections of offshore production platforms, pipelines and other structures exposed to the furry of Rita and Katrina.
The cumulative shut-in oil production from Aug. 26 to Oct. 27 totaled 70.595 million barrels, or nearly 13 percent of annual Gulf oil production of roughly 547.5 million barrels, according to information furnished by the U.S. Minerals Management Service.
During the same period, the cumulative shut-in natural gas production in the Gulf totaled 359.216 billion cubic feet, or nearly 10 percent of annual Gulf gas production of about 3.65 trillion cubic feet, according to MMS.
On a daily basis, about 68 percent or 1.022 million barrels of Gulf oil production remained shut-in as of Oct. 27, while nearly 56 percent or 5.559 billion cubic feet of natural gas production remained shut-in. Some shut-ins from Wilma Though most of the overall production loss was caused by the one-two punch of Rita and Katrina, Hurricane Wilma, which grazed producing areas of the Gulf on its way to southern Florida, accounted for a small amount of the production shut-in, MMS said.
Meanwhile, it appears the extent of damage caused by Rita and Katrina was far greater than first suspected, leading MMS to order mandatory inspections of offshore platforms and pipelines.
“Begin immediately to conduct the required surveys,” MMS said in an Oct. 24 notice to leaseholders and operators. “We encourage you to inspect first the older platforms located nearest the eye center storm tracks, and then gradually inspect those platforms toward the outer limits of the described area.”
MMS said the inspection order was issued based on “the numerous reports of severe damage” to platforms both above and below the water line. Some 160 platforms were reported destroyed or heavily damaged by the storms, both Category 4 and 5 hurricanes as they swept through the major producing areas of the Gulf in August and September. Platform surveys by May 5 Platform surveys must be finished by May 5 and repairs completed before June 1, MMS said. Monthly updates beginning Nov. 4 and ending May 5 also will be required of leaseholders and operators, the agency said.
“Make every attempt to complete the required underwater surveys before you man any of the platforms,” MMS said in its notice, adding that the agency would review initial inspection plans “and advise you concerning their acceptability.”
In addition to platforms and other offshore structures, MMS has mandated offshore pipeline inspections due to “the numerous reports of severe damage” to sub-sea pipelines along the paths of Rita and Katrina.
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