Current Gulf of Mexico production still dragging

Almost three months after hurricanes hit Gulf of Mexico 48 percent of daily oil production remains shut in, says MMS

Ray Tyson

Petroleum News Contributing Writer

Approaching three months after sister hurricanes Rita and Katrina spread havoc across producing areas of the Gulf of Mexico, a significant chunk of daily Gulf of Mexico oil and gas production remained shut-in as of Nov. 17, according to information furnished by the U.S. Minerals Management Service.

MMS said 47.8 percent or 717,807 barrels of oil production per day remained shut-in, and 36.5 percent or 3.7 billion cubic feet of daily natural gas production remained shut-in.

The cumulative shut-in oil production from Aug. 26 through Nov. 17 totaled 87.8 million barrels, or a little more than 16 percent of about 547.5 million barrels in annual Gulf oil production, MMS said.

During the same period, the cumulative shut-in natural gas production in the Gulf totaled 453.1 billion cubic feet, or 12.4 percent of about 3.65 trillion cubic feet of yearly output, according to the agency.

Additionally, 17.8 percent of the 819 usually manned platforms in the Gulf remained evacuated, while just 3.7 percent of the 134 drilling rigs remained evacuated, MMS said.

Meanwhile, public comments on an array of industry cost recovery fees associated with MMS services, delayed because of hurricane disruptions, are now due by Jan. 13, 2006, according to a recent posting in the Federal Register.

The proposed service fees are designed to offset MMS’ costs of processing offshore plans, applications and permits. MMS said the new fees would result in $16.5 million in cost recovery for the agency.