Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Hurricane shifts from offshore U.S. oil fields, heavy rains to dampen fuel demand

Hurricane Sally crawled offshore along the U.S. Gulf Coast on Wednesday, moving away from oil fields while soaking the region with heavy rains that could dampen fuel demand in the U.S. southeast.

The hurricane has shut more than a quarter of U.S. offshore Gulf of Mexico oil and gas production and stirred heavy seas that closed ports from Louisiana to Florida. It moved at a snail's pace toward a Wednesday landfall on the coast between Mississippi and Florida.

While Sally's intensity lessened, it remained a Category 1 hurricane with 85 miles per hour (140 kmh) winds. Oil and chemical ports along the Mississippi River were moving to reopen with restrictions and some offshore operators were preparing to return workers to offshore platforms.

OIL PRICES RISE IN ASIA

Nearly 500,000 bpd of offshore crude oil production and 759 MM cubic feet per day (mmcfd) of natural gas output were shut in the U.S. Gulf of Mexico, according to the U.S. Interior Department.

Crude oil prices were higher in Asian trading on Wednesday, extending the day-earlier's gains on shut-ins and an industry report forecasting a drop in U.S. crude stockpiles. Oil futures rose about 1.5% after trading up more than 2% on Tuesday.

The National Hurricane Center warned Sally could drop 10 to 20 inches (25-50 cm) of rain and up to 30 inches in some spots. It warned of life-threatening flash flooding along the coast between Mississippi and the Florida Panhandle.

Sally's slow crawl will continue after landfall and leave as much as 6 inches of rain through Friday as far inland as Atlanta, said Jim Foerster, chief meteorologist at weather data provider DTN. "It's going to be a catastrophic flooding event" for much of the southeastern United States, he said.

Rain will spread across Alabama, Georgia and South Carolina by Friday, forecasters said, cutting into travel and damping fuel demand in the southeast.

U.S. gasoline stocks rose by 3.8 MM barrels last week, according to data released on Tuesday by trade group American Petroleum Institute, above analysts' expectations in a Reuters poll for a draw of 160,000 barrels.

(Reporting by Erwin Seba, writing by Gary McWilliams, editing by Richard Pullin)


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment: China eyes continued expansion of smaller-scale LNG
-Adrienne Blume
Smaller-scale liquefaction in China, the world’s second-largest LNG importer, has experienced growth in recent years as China’s government integrates more gas into the country’s energy matrix.
Executive Q&A Viewpoint: SeaOne expands South American energy options with Compressed Gas Liquid technology
-Bruce Hall
SeaOne is a midstream infrastructure and logistics company that leverages its patented Compressed Gas Liquid (CGL™) technology to lower energy costs in various markets, generating new opportunities for economic growth and environmental stewardship.


The quest for plant availability: Achieving improved compressor reliability and efficiency in downstream operations

Register Now

Plants in the downstream industry require a great degree of operational availability, equipment reliability and efficiency: These factors are crucial for end users, as thousands of complex and intricate processes are operating in parallel – many of them are driven and safeguarded by compression technologies.

Uniformly, reliability is a universal maxim, and this holds particularly true for handling and compressing challenging gases processed in such plants. In fact, there is a direct, vital link between the reliability of compressor equipment designed for and used in these processes and the availability of the plant.

With a focus on different chemical/petrochemical, syngas and LNG applications our speaker Ulrich Schmitz will introduce to the listeners how centrifugal compression technologies such as integrally geared can be designed and employed reliably to perform the key process challenges of the industry, while also contributing to an efficient operation.

September 24, 2020 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2020 Gulf Publishing Holdings LLC.