|
Gulf of Mexico output still at only half capacity
 Nearly half the production from the biggest US oil and natural gas region remains shut down in the wake of hurricanes Gustav and Ike, which swept through the Gulf of Mexico last month. However, the Department of Energy said high petrol prices caused by the disruption should subside in the next few weeks as the refineries and market conditions returned to normal. Many companies used the shutdowns for maintenance work, which also affected supplies and raised prices.The damage was not confined to production platforms in the gulf, which produces 20 per cent of US oil and natural gas, as several pipelines and processing facilities onshore were damaged. Regulators estimate that 48.2 per cent of oil production in the gulf and 44.6 per cent of natural gas production remains shut. The hurricanes destroyed 52 offshore platforms and four drilling rigs, while 29 platforms and one rig suffered extensive damage and 33 platforms moderate damage. Six gas transmission pipelines were damaged. The closure of 15 refineries, responsible for about 20 per cent of US refined product, also hit supplies, as it can take two weeks to check all machinery and restart. Posted by: Steve White 2008-10-07 |
| http://www.rantburg.com/poparticle.php?ID=252066 |