the US, Europe and Japan have enough strategic emergency stockpiles of crude oil to wait a week to assess the damage before having to decide whether to release oil to damp prices,But Japan nixes the idea. Saudi Arabia is getting in on the act to boost oil production.
Nearly 95 percent of the Gulf of Mexico's oil output was out of service among the 4000+ oil rigs and platforms that dot the offshore waters known as the Gulf of Mexico Central waters. Or click here for a much larger map. It is assumed that much of the 33,000 miles of underwater pipelines that carry the oil were also affected. Most of the oil rigs and platforms are concentrated near Louisiana, Missississippi and Alabama resting above the Continental Shelf as well as on the outer Continental Shelf. But compared to hurricane Ivan in 2004 the damage was much less extensive where only 150 structures out of the 4000 and 33,000 miles of pipelines were affected. This was a storm when wind speeds were around 140 mph versus Katrina's at 175 mph .
Of the 4,000 structures and 33,000 miles of pipelines in the gulf....150 platforms and 10,000 miles of pipelines were in the direct path of Hurricane Ivan. A substantial amount of the deferred production is directly attributable to damage that has occurred along pipeline routes rather than actual structural damage to the producing platforms. Pipelines in mud slide areas off the mouth of the Mississippi River experienced failures and will take a significant effort to locate and repair because the pipelines are buried by as much as 20 to 30 feet of mud.
You can check up on the latest date on "Hurricane Katrina Evacuation and Production Shut-in Statistics" on number of evacuated, damaged or destroyed rigs and underwater oil pipe lines caused by hurricane Katrina by clicking on the link near the upper right corner of website. Compare Katrina's with that of Ivan's. Or click here to see the history of hurricanes or tropical storms impact on oil production.
Currently, the number of US structures in the Gulf is roughly 4,000, with 819 manned platforms. And those numbers are only expected to grow according to Minerals Management Service (MMS), which regulates the oil industry in federal waters.
Hurricanes do have the potential to impact oil production should they come close to oil facilities or structures. Hurricane Katrina is believed to be the worst ever by shutting down U.S. domestic oil production as much as 95 percent. But offshore oil rigs and platforms have improved their survivability in hurricane force winds exceeding Category 1. However, a Category 5 hurricane is another story.
Next we have is this silliness from the yahoo left who have (falsely) remembered or believed that there were no increased gas prices during the 1980s despite the rash of "deadly" hurricanes that tore into offshore oil rigs and platforms out on the Gulf of Mexico waters. Allow me to educate some of these myths thinking that supply and demand are not the case but rather mostly corporate oil price gauging. A Funny bunch of little kiddies they are.
I'm stating the fact that when hurricanes hits the region in late 1980s, no gas prices had increased at all! Right now, anything happened, the gas prices increased! It is an excuse after an excuse. Don't you get it? Or are you that young to notice something amiss?A fact? Something's amiss? Perhaps it's the guy who made the comment is missing something here and ought to do some serious checking on facts. Anybody can do a simple check on hurricane history in the Atlantic Ocean and Gulf of Mexico and compare the immense impact of 2004 and 2005 hurricane seasons. But hurricane Katrina was the worst of all with a Category 5 slamming into many of the offshore oil rigs and platforms just as Hurricane Ivan did near Louisiana, Missississippi and Alabama coastlines but only with winds in the 130-140mph category.
Throughout the 1980s hurricane seasons were relatively quiet in the Gulf of Mexico. A few Category 1 or 2 hurricanes hit the Gulf of Mexico causing minor disruption to oil production near Louisiana or its onshore oil refineries. But the late 1980s? Hardly any hurricanes, much less a tropical storm, ever hit the Louisiana/Missississippi/Alabama/Texas area. But when a large enough hurricane does hit offshore rigs/platforms and inland oil refineries, the impact is immediately felt.
The Chalmette Refinery, located about 10 miles east of downtown New Orleans, processes 190,000 barrels of oil a day. It was shut down by Exxon Mobil and Petróleos de Venezuela, its co-owners in anticipation of hurricane Katrina. Valero Energy shut down its St. Charles refinery in Louisiana, and Chevron shut down a refinery in Pascagoula, Miss., on the coast near the Alabama border. The largest capacity refinery shut down by the storm was an Exxon Mobil refinery in Baton Rouge, the Louisiana state capital which is about 80 miles Northwest form New Orleans. The plant can process 493,500 barrels of oil a day. Oil exporation and production continues to grow in the Gulf of Mexico and we can thank President Clinton for signing "The Deep Water Royalty Relief Act" (DWRRA) into law in November 1995. This law improved the economics of deep-water production allowing oil rigs and platforms to spring up all over the Gulf of Mexico. Today these offshore oil rigs and platforms provide more than 25% of all U.S. domestic oil and gas production.
In an effort to promote the exploration and production of natural gas and crude oil in deep water, the Outer Continental Shelf Deep Water Royalty Relief Act (DWRRA) implemented a royalty-relief program that relieves eligible leases from paying royalties on defined amounts of deep-water production. After its expiration in 2000, the DWRRA was redefined and extended to promote continued interest in deep water. The Minerals Management Service (MMS) defines a "deep-water" lease as having a minimum water depth of 200 meters (656 feet). To be eligible for relief, the lease must be located in the Gulf of Mexico and west of 87 degrees and 30 minutes West longitude (the Florida-Alabama boundary).How ironic. President Clinton? An oil man?
Besides the impact on U.S. oil affecting internationally, a few international government are taking advantage of the environmental and personal tragedy exacted by hurricane Katrina to bash President Bush on global warming. QandO has the details about Germany's unthoughtful rhetorics. Perhaps we should send the 75,000 U.S. soldiers stationed in Germany over to devastated areas impacted by hurricane Katrina, and maybe Germany will finally feel their own economic impact for the time being. Also, Captain's Quarters have more info on RFK jr's hot air on global warming and hurricane Katrina.
However, there are a few "relief funds" being set up by international businesses (plural?). International help to assist devastated communities in the United States is vastly small compared to the U.S. own generous charities by private citizens and businesses.
Check out "The Bad Hair Blog" on which countries outside of the United States are wanting to help and contribute to the cause of Hurricane Katrina victims.
Michelle Malkin makes a similar observation, too.
Remember, this hurricane relief effort will be long term and will be felt for years. Much longer than the impact felt by Hurricane Andrew when it hit Florida in 1992. The year 2005 is the year of killer Katrina.