9-1-2012
http://news.yahoo.com/oil-gas-firms-restore-output-isaac-193622071--finance.html?_esi=1
Oil and gas firms work to restore output after Isaac
Nearly 95 percent of oil and 68 percent of natural gas production in the U.S. Gulf of Mexico remained shut as of Friday
The idled refineries represented 5 percent of total U.S. capacity. Offshore production from the U.S. Gulf of Mexico -- most of which remained shut -- typically makes up 23 percent of U.S. oil production and 7 percent of U.S. natural gas output.
To bring refining throughput levels along the Gulf Coast back to near pre-storm rates could take at least five to 10 days since plants will restart slowly for safety reasons, according to a source at a major Gulf Coast refiner, who asked not to be named.
ALLIANCE REFINERY FLOODING
Uncertainty remained about one refinery's prospects for restarting. Phillips 66 said that parts of its 247,000-bpd Alliance refinery in Belle Chasse, Louisiana were inundated with two feet of water after Isaac-related flooding.
SPR CRUDE LOAN
Marathon Petroleum Corp said its 490,000-bpd refinery in Garyville, Louisiana, was operating at reduced rates. The U.S. Department of Energy (DOE) said Marathon will receive a loan of 1 million barrels of crude from the U.S. Strategic Petroleum Reserve (SPR) to supply the refinery with crude it needs to ramp up to normal processing rates.
"This is a small, limited time swap in response to Isaac and should not have a major impact on crude prices," said Bob McNally, head of the Washington-based consulting firm The Rapidan Group.
The DOE said it continues to analyze a broader release of crude from its SPR in response to any crude supply disruptions.
The DOE will "keep all options on the table to address additional or sustained oil supply issues," it said in a Friday statement.
CRUDE IMPORT TERMINALS, GAS AND POWER
Facilities that receive U.S. crude imports were re-opening on Friday from Isaac-related shutdowns this week.
The Louisiana Offshore Oil Port (LOOP), which receives up to 13 percent of U.S. crude imports, has restarted deliveries from its onshore storage facilities at Clovelly, Louisiana and expects to restart offshore crude tanker offloadings as soon as possible, a spokeswoman said.
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