Thursday, September 22, 2005

UPDATED: Hurricane Rita -- Is It the Coming Oil Storm?

Last June, the FX Network aired, OIL STORM. It's a program about what happens when a powerful hurricane strikes the US coast along the Gulf of Mexico and cripples oil flow.

Program Synopsis

Oil Storm examines what happens when a category 6 hurricane in the gulf of mexico slams into Louisiana, crushing the city of New Orleans and crippling the vital pipeline for refined oil that is Port Fourchon. It examines the ripple effect of that event and the ensuing cascade of disasters associated with it, through the eyes of public officials, a family in Texas who owns a gas station, an EMS worker in Boston who has to deal with a brutal winter, and a ranching family in South Dakota who have their subsidy's completely taken away and question whether we need oil or food to survive.
As the country reels from the loss of life and energy reserves associated with hurricane's fury, the price of crude oil skyrockets and the United States government sets forth to take immediate action. It puts in motion efforts to rebuild the infrastructure of Port Fourchon (8 months minimum) and the sagging and disabled deep sea rigs in the gulf of Mexico (of equal length). It re-routes activity normally associated with the Port Fourchon shipping lanes to the port of Houston and compels Houston to work 24/7 in order to get the crude to our refineries and out to the public.

The Real Oil Storm

In the professional energy community, the important question is, "Where is the worst place for Rita to hit?" Check out the response at The Oil Drum.
The worst tracks are those which put landfall between Freeport and Sabine Pass Texas. There are 3 tracks that cross just offshore of the TX/LA border. Those 3 tracks all let the storm hit more rigs and platforms than the tracks that have landfall farther south. The big concentrations of platforms are in the West Cameron, High Island, Galveston, and Matagorda Island offshore areas. Mustang Island and North/South Padre Island offshore areas are less crowded with production. If you want to know what these areas look like and where they are geographically, try the MMS website. They instituted the block layout, naming and leasing stuff. Landfall just east of Houston's center will be right up refinery alley. Another bad spot is right up through Port Arthur and Beaumont - another big refining center. Not trying to slam anyone, but the best place in terms of damage [to the oil industry] would be between Corpus Christi and Brownsville - lots of low areas and farmland/ranches would flood, but minimal infrastructure damage. Next best is between Houston and Corpus Christi - again, fairly vacant of major infrastructure. Most of our big plants are in the stretch of coastline between Freeport and Sabine Pass. We're all just watching and hoping it stays poorly organized and just hits as a Cat 2 or 3...
Tags: Gulf Coast, Hurricane Rita
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