Offshore oil restores 200,000 barrels of production; repair efforts continue

offshore oil

Offshore oil companies restored 200,000 barrels of production this Friday. However, most of the overall output of the region remains shut, as repair efforts continue after the havoc provoked by Hurricane Ida, according to government data reported by Reuters.

The furious storm hit Louisiana after hitting offshore oil platforms in the U.S. Gulf Coast. Landed in the Baton Rouge area and continued through New Orleans. It flooded the area, killing dozens of people and leaving millions without power.

In fact, it has been one of the most disruptive Hurricanes in recent years, knocking down more oil than Katrina and other big storms. As of this Friday, around 1,2 million barrels per day of production were still offline, which helped oil prices, as reported earlier.

For natural gas, over 1.68 billion cubic feet per day were also offline, while a total of 65 platforms and three rigs continue evacuated, said the Bureau of Safety and Environmental Enforcement (BSEE).

On the bright side, Reuters reports that the Louisiana Offshore Oil Port (LOOP); the largest U.S. privately-owned deep-water crude terminal, has fully reopened its marine operations for imports and exports.

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Offshore oil slowly coming back, as well as refiners

In addition, Enbridge, the pipeline operator, said this Friday its offshore assets were ready to operate once producers bring production back online.

As for the downstream sector, ExxonMobil sought on Thursday a second release of oil from the federal Strategic Petroleum Reserve. The company intends to feed its 520,000 barrels per day Baton Rouge refinery. Julie King, the company’s spokesperson, said. “The oil will help us completely restore normal operations.”

Moreover, Chevron on Thursday said it had restored partial production at its Jack St. Malo and Blind Faith platforms. Also, as we reported previously, CF Industries, a hydrogen supplier and byproduct manufacturer; announced this Thursday it had restarted its production of ammonia at the Donaldsonville Complex in Louisiana.

Finally, RMS, one of the largest risk modeling firms globally, estimates U.S. insured energy losses from Ida in the Gulf of Mexico at between $25 billion and $35 billion. Specialists also estimate that insured losses to offshore platforms, rigs, and pipelines are around $700 million and $1,5 billion.

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