• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 15 hours Fukushima
  • 2 days America's pandemic dead deserve accountability after Birx disclosure
  • 20 hours Today Biden calls for Summit with Putin. Will Joe apologize to Putin for calling him a "Killer" ?
  • 1 hour U.S. Presidential Elections Status - Electoral Votes
  • 2 days CO2 Mitigation on Earth and Magnesium Civilization on Mars – Just Add Water
  • 2 hours Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 13 hours Biden about to face first real test. Russia building up military on Ukraine border.
  • 16 hours Joe Biden's Presidency
  • 2 days New Chinese Coal Plants Equal All those in U.S.A
  • 4 days Does .001 of Atmosphere Control Earth's Climate?!
  • 3 days Oh the Dems!!! They cheer for helping people while stabbing them in the back!!! Enbridge asks Canadian government to support oil pipeline in dispute with Michigan
  • 4 days The coming Cyber Attack
Tom Kool

Tom Kool

Tom majored in International Business at Amsterdam’s Higher School of Economics, he is Oilprice.com's Head of Operations

More Info

Premium Content

Hurricane Laura Makes Landfall In Oil Heartland

Laura made landfall as a Category 4 hurricane in southwestern Louisiana near Cameron, with wind speeds reaching 150 mph and torrential rains drowning the coastal line.

Ahead of Laura’s landfall, oil producers in the Gulf had shut in more than 84 percent of oil production and more than half of gas production. The oil output shut-in stands at 1.558 million bpd, and the gas output shut-in stands at 1.65 billion cu ft daily. Refiners were also shutting down and bracing themselves for the impact.

“These hurricanes, they can attack the entire energy infrastructure,” Jim Burkhard, head of IHS Markit oil market research, told the AP. “And it’s not just a refinery being shut down, but if a pipeline gets shut down, or the electrical grid gets damaged, it shows how integrated all these systems are: pipelines, refineries, electricity. And it’s that aggregate damage that can be so challenging to overcome.”

The silver lining in all this potential destruction would be an oil price jump, but this has failed to materialize for more than a few hours after every pessimistic hurricane update over the past few days. According to experts cited by the AP, the likelihood of serious oil or gasoline shortages as a result of the hurricane is slim, since there is enough oil and fuel in storage in other parts of the United States.

Some believe that the tightening of both oil and gasoline inventories over the past few weeks could, combined with the hurricane, lead to some supply disruptions. However, both crude oil and gasoline stockpiles, according to the Energy Information Administration, are above the five-year average for this time of the year, so the supply disruption possibility is quite a distant one, unless the disruptive effects of Laura, such as floods, linger for longer, as it happened with Hurricane Harvey in 2017.

By Tom Kool for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News