Offshore drillers in the Gulf of Mexico and refiners in Texas and Louisiana are on alert for the Tropical Storm Cristobal which has developed in the southern part of the gulf. Drillers and refiners are expecting to feel the potential impacts later in the week.
As the storm hovers above the Bay of Campeche, the rain impacts could delay loading at Dos Bocas marine terminal in Mexico. Other facilities such as the 280,000 bpd Villahermosa terminal, 234,000 bpd Progreso terminal, and 230,000 bpd Campeche terminal may also be in the potential path of the storm.
The US National Hurricane Center expected that by this weekend, the tropical storm Cristobal to begin moving northward across the Gulf of Mexico. However, it has not expected the location and period of any potential effects along the US Gulf Coast. The US National Oceanic and Atmospheric Administration said the 2020 Atlantic hurricane season is expected to have 13-19 named storms, including three to six category 3 or stronger hurricanes.
For the oil and gas industry in the US, the annual risk of hurricanes this year adds uncertainty stemming from the COVID-19 pandemic. Measures to contain the diseases have depressed demand and may affect how the sectors respond to landfall of a major storm in 2020. High product inventories along the US Gulf Coast might ease the effect on supply chain if the storm damaged infrastructure or shut operations.
