Offshore gas production is rebounding faster than onshore production in the Eagle Ford in the aftermath of Hurricane Harvey.
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Offshore gas production continued to rebound Friday, with about 406 MMcf/d shut in, 12.6% of daily Gulf of Mexico gas output of 3.2 Bcf/d, according to the Bureau of Safety and Environmental Enforcement. That's down from 17.6% Thursday.
Personnel remained evacuated from 75 production platforms, or 10.2% of the 737 manned platforms in the Gulf of Mexico, down from 94 platforms Thursday.
* Offshore production should continue to come back online. ExxonMobil said its Hadrian South system is returning to production. Hadrian South produces more gas than is typically found in the Gulf Coast. ExxonMobil produced an average of 300 MMcf/d of gas to only 3,000 b/d of liquids from the system in 2015.
* Pipeline operator Williams said Friday about 255 MMcf/d of offshore gas supply was shut in by Gulf producers feeding its Transcontinental Gas Pipe Line system, an improvement from the 280 MMcf/d that had been shut in for seven consecutive days.
"We are starting to see some offshore production starting to come back online," spokesman Christopher Stockton said. "We expect to see that number continue to improve this weekend."
* Sample onshore production in the Eagle Ford was 700 MMcf/d on Friday, according to Platts Analytics' Bentek Energy. It remains 600 MMcf/d below pre-Harvey levels, but 225 MMcf/d up from lows last week.
* More than half of the rigs running in the Eagle Ford Shale are estimated to have suspended drilling because of the storm, Raymond James and Associates analyst Marshall Adkins said in a note. Soggy conditions are expected to add stress to the fracking services sector that has consistently lagged the faster drilling crews.
"Given that much of oil and gas activity occurs in areas only accessible via dirt roads, the heavy rainfall usually makes the movement of trucks and supplies much more difficult," Adkins said. "The trucking and rail of sand, chemicals, and personnel to the well site will all take more time given the likely nasty condition of many Eagle Ford access roads."
* Enterprise Products Partners said Friday it is in the process of restarting some of its assets at its facility in Mont Belvieu, Texas. A filing with the Texas Commission on Environmental Quality said the start date, time and duration could vary as individual units are brought online.
* Kinder Morgan said Friday it has made substantial progress on the recovery and restart of systems that were directly affected by Hurricane Harvey.
"At this point, all of our impacted natural gas pipelines, liquids and dry bulk terminals, and products pipeline facilities are secured, with nearly all assets available for full or partial service," the pipeline operator said. "Thorough damage assessments and repairs, where necessary, are under way, and the few remaining facilities that remain offline will be placed back into service as soon as practical."
* Estimates for Sabine Pass implied LNG storage rose to capacity as of Thursday, with LNG vessels unable to load cargoes due the lingering effects of Harvey. Sabine Pass has not loaded a cargo since August 25, but has continued to produce LNG throughout the storm. Cheniere had previously announced the storm would not affect production at the facility.
* Feedgas deliveries to the facility trended in line with the previous month-to-date average, until Wednesday, when deliveries fell to an average of 1 Bcf/d, down 0.7 Bcf/d from the previous month-to-date average. There are currently seven idle, unladen LNG vessels in the Gulf of Mexico. At this time, none appear to be inbound for Sabine Pass, which could affect LNG feedgas deliveries.
--Staff reports, firstname.lastname@example.org
--Edited by Kevin Saville, email@example.com