1.607 million b/d of oil production offline in US Gulf of Mexico: BSEE

A week after Hurricane Ida made landfall, 1.607 million b/d of oil production remains offline in the US Gulf of Mexico, data from the US Bureau of Safety and Environmental Enforcement showed Sept. 5.

That amounts to 88% of the 1.8 million b/d of pre-storm US Gulf of Mexico average oil production, and is down from 1.684 million b/d, or 92.5% of output, on Sept 4.

Also, 1.845 Bcf/d (83%) of Gulf of Mexico natural gas output was offline Sept. 5, down from 1.915 Bcf/d (86%) the prior day.

US Gulf upstream operators had restored 15 more production platforms by noon Sept. 5 than were active 24 hours earlier. Total platforms still evacuated totaled 104, 19% of the US Gulf's total, versus 119 the previous day.

"Since operators started shutting in volumes Aug. 27, nearly 13 million barrels of crude have been curtailed, almost twice the average amount cut down by storms in their first eight days during the 2020 Atlantic hurricane season," said S&P Global Platts Analytics analyst Sami Yahya Sept. 3.

"While producers carry on damage assessments offshore, it is likely that midstream and downstream bottlenecks bear the larger responsibility in the currently stalled recovery," he said.

Ida landed a direct hit at Port Fourchon, Louisiana , a key hub that serves as a point of transportation to and from offshore facilities and receives over 90% of the US Gulf crude and gas output. From there, the hub distributes the volumes to various storage facilities and terminals via a network of pipelines.

But because that area was struck, helipads and roads were damaged, impeding access by upstream operators to their offshore platforms and installations.

Louisiana Highway 1, which leads to Port Fourchon , reopened Sept. 3.

"Port tenants have been given full access to return to their facilities, and work is progressing to get the port back up and running," the port said in a Sept. 4 update.

Port Fourchon curfew in place

A "dusk to dawn" curfew is in place at Port Fourchon and Lafourche Parish," the port said.

"US Coast Guard is allowing conditional access to Port Fourchon waterways, including Belle Pass, with restrictions for daylight operations only," the port said. "Vessels in port can maneuver in port waterways. Navigation through the main channel in Belle Pass is one lane only, with no meeting or overtaking in the channel."

The port of Houma has reopened, but with restrictions, according to the USCG.

Several upstream operators, including Shell, BHP and BP, have stated they are temporarily moving their shore base operations elsewhere.

Operators now appear to be looking at Galveston, Intercoastal City and Cameron as a new or temporary base of operation while Port Fourchon is recovering, S&P Global Platts Analytics said.

Port Fourchon is also home of the Louisiana Offshore Oil Port's onshore facilities, which includes a booster station and Clovelly Dome Storage Terminal.

LOOP said in a Sept. 4 update that facility "assessments and repairs continue."

"LOOP continues to work with shippers to minimize storm-related impacts and is coordinating receipts and deliveries to regional refineries," the port said.

Also, an oil slick in the US Gulf said has been noted by news reports to be south of Port Fourchon.

According to the Associated Press, a spokesman for the USCG identified the apparent source of the spill as coming from Bay Marchand, Louisiana, from an undersea pipeline owned by Talos Energy.

Talos said it believed its assets are not the source since it had previously leased the Bay Marchand block but stopped producing there in 2017 and plugged wells and removed all pipe there two years ago, AP reported. Nonetheless, the company has sent response vessels to the area for oil recovery.

Louisiana refiners restarting

Louisiana refiners have started to return operations, although the return has been slowed by a lack of power in the eastern portion of the state.

Marathon spokesperson Joe Gannon said Sept. 3 the company's Garyville plant is now receiving reliable electric power and is in the initial stages of restarting.

ExxonMobil's Baton Rouge refinery is also in the process of restarting.

Marathon's Garyville plant, Shell's Norco refinery and Valero's Norco refinery are in the harder-hit St. Charles and St. John parishes.

PBF Energy's Chalmette refinery and Valero's Meraux refinery are in areas that utility company Entergy said Sept. 3 should have power restored by Sept. 7.

Phillips 66 has said its Alliance Refinery sustained some damage and will take longer to return.