Hurricane Laura has forced US oil and petrochemical companies to prepare for likely the worst storm threat since Hurricane Katrina in 2005. Hurricane Laura continues to strengthen and is forecast to develop into a major hurricane with sustained 185 kilometres per hour winds. It is expected to make landfall in early August 27 in an area that contributes to 17% oil production and 45% of total refining capacity in the US, according to the Energy Information Administration.
By Tuesday, oil producers had evacuated 310 offshore production platforms in the Gulf of Mexico and shut 1.56 million bpd oil output, 84% of the region’s offshore production, comparable to the 90% output shutdown that Katrina caused 15 years ago. Refiners were also taking steps to anticipate winds and heavy rainfalls caused by the hurricane.
Reuters on Tuesday reported that nine facilities with a combined crude processing capacity of nearly 2.9 million bpd, or 14.6% of the US total capacity were halting operations. Total, Motiva, and Valero said they were shutting down their plants in Port Arthur, Texas. Citgo Petroleum was putting its 418,000 bpd refinery in Lake Charles, Louisiana offline, while Chevron halted gasoline making at its 112,000 bpd refinery in Pasadena, Texas.
ExxonMobil started shutting down operations at its refinery in Beaumont, Texas. The company also reduced production at its plant in Baytown, Texas, while preparing for possible severe weather at the complex. Cheniere Energy also evacuated workers and halted operations at its Sabine Pass LNG export terminal.
