• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 6 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Texas Oil Industry Braces For Impact As Hurricane Nicholas Makes Landfall

Tropical storm Nicholas, which was upgraded to a Category 1 hurricane yesterday, made landfall in the early hours of Tuesday in the Matagorda Peninsula, threatening dangerous flooding in the U.S. oil heartland just days after another hurricane, Ida, shut down almost all offshore oil production and a lot of Gulf Coast refining capacity.

The progress of the hurricane pushed oil prices to the highest in six weeks on Monday, as more than 40 percent of U.S. offshore oil production, or close to 800,000 bpd, still remains shut down from Ida. The last hurricane at one point shut down as much as 95 percent of production.

“The threat of more disruptions from extreme weather is also a cause of concern for producers and a reason for traders to add price premiums,” Nishant Bhushan, Rystad Energy’s Oil Markets Analyst, told the Houston Chronicle. “Nicholas could impact loadings at the ports and also refineries, and turn last week’s rising number of working rigs around again.” 

The National Hurricane Center warned of dangerous floods as Nicholas approaches land. The center reported that various warnings have been issued for several regions along the Texas Gulf Coast, including Sabine Pass—home of the largest LNG export facility in the country.

“On the forecast track, the center of Nicholas is expected to make landfall along the Texas coast in a few hours [on Wednesday], move over extreme southeastern Texas on Tuesday and early Wednesday, and over southwestern Louisiana later on Wednesday.”

The hurricane is currently moving at maximum sustained winds of 74 mph with higher gusts, the NHC also said. These speeds are unlikely to change before Nicholas makes landfall.

Texas Governor Greg Abbott has said states of emergency will be declared for 17 counties and three cities in anticipation of Nicholas’ landfall, which is more likely than not to push oil prices further up.

By Irina Slav for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News