Shale Offsets Hurrican Losses | Russell T. Rudy Energy LLC
During hurricane season, oil and gas production platforms in the Gulf of Mexico are often shut-in for safety and environmental reasons. For example, in 2013, nearly two-thirds of oil and gas production in the Gulf was lost due to Tropical Storm Karen. While 23% of U. S. output is from offshore, the Energy Information Administration reports that any cutbacks should be offset by production from onshore shale fields according to a recent article in “Rigzone”.
The 2014 hurricane season began June 1. The National Oceanic and Atmospheric Administration predicts 8-13 named storms, 3-6 of which might develop into hurricanes, and 1-2 of these might be Category III.
While losses in offshore production might be offset by unconventional oil and gas, downstream capacity could still be a problem. More than 40% of domestic refining, and 30% of natural gas processing, is located on the Gulf Coast.
To read the article in its entirety, please go to www.rigzone.com/news/oil_gas/a/133455/EIA .
