BOEMRE Reports Final Update on Tropical Storm Don

- BOEMRE Reports Final Update on Tropical Storm Don

Monday, August 01, 2011
BOEMRE

The Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE) Hurricane Response Team is concluding its activities related to Tropical Storm Don.

This is the final update of evacuation and shut-in production statistics for Tropical Storm Don.

Based on data from offshore operator reports submitted as of 11:30 a.m. CDT today, none of the 617 manned production platforms in the Gulf of Mexico remain evacuated. Production platforms are the structures located offshore from which oil and natural gas are produced. Unlike drilling rigs, which typically move from location to location, production facilities remain in the same location throughout a project’s duration.

None of the 62 rigs currently operating in the Gulf remain evacuated. Rigs can include several types of self-contained offshore drilling facilities including jackup rigs, submersibles and semisubmersibles.

As part of the evacuation process, personnel activate the applicable shut-in procedure, which can frequently be accomplished from a remote location. This involves closing the sub-surface safety valves located below the surface of the ocean floor to prevent the release of oil or gas. During the recent hurricane seasons, the shut-in valves functioned 100 percent of the time, efficiently shutting in production from wells on the Outer Continental Shelf and protecting the marine and coastal environments. Shutting-in oil and gas production is a standard procedure conducted by industry for safety and environmental reasons.

From operator reports, it is estimated that approximately 2.3 percent of the current oil production in the Gulf of Mexico has been shut-in. It is also estimated that approximately 0.9 percent of the natural gas production in the Gulf of Mexico has been shut-in. The remaining shut-in production is not associated with any reported damage.

The production percentages are calculated using information submitted by offshore operators in daily reports. Shut-in production information included in these reports is based on the amount of oil and gas the operator expected to produce that day. The shut-in production figures therefore are estimates, which BOEMRE compares to historical production reports to ensure the estimates follow a logical pattern.

After the tropical storm passes, facilities are inspected. Once all standard checks have been completed, production from undamaged facilities is brought back on line immediately. Facilities sustaining damage may take longer to bring back on line. BOEMRE will no longer report Tropical Storm Don statistics.

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Tropical Storm Don to Make Landfall Late Friday

- Tropical Storm Don to Make Landfall Late Friday

Friday, July 29, 2011
Rigzone Staff

Tropical Storm Don, the fourth tropical storm in the Atlantic this season, is expected to make landfall late Friday or early Saturday, according to the National Hurricane Center.

At 0900 GMT, the storm was located 290 miles southeast of Corpus Christi, Texas, headed west-northwest near 14 mph. Maximum sustained winds were near 50 mph.

According to the Bureau of Ocean Energy Management (BOEMRE), approximately 6.8 percent of the current GOM oil production has been shut-in and 2.8 percent of the natural gas production.

According to BP, it is starting to send workers back to its oil and gas platforms in the GOM. There is no production impact at Mad Dog and Holstein as both facilities have been completing scheduled maintenance.

Along with majors Shell, Apache, Chevron, BP and BHP, Enbridge has also evacuated personnel from its West Cameron 509 platform.

Northern Natural Gas will shut-in production from its Matagorda Offshore Pipleline System in GOM.

Refineries such as Valero's 115,000-barrel-a-day-plant, ConocoPhillips' 247,000-barrel-a-day Sweeny refinery, Citgo's 165,000-barrel-a-day facility and Flint Hills Resources 300,000-barrel-a-day-plant are located in the storm's path, near Corpus Christi.

Tropical Storm Don isn't expected to become a hurricane.

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Commodity Corner: Oil Jumps on Fear of Don

- Commodity Corner: Oil Jumps on Fear of Don

Thursday, July 28, 2011
Rigzone Staff
by Saaniya Bangee

Oil futures edged higher Thursday as Tropical Storm Don brewed in the Gulf of Mexico.

Oil trading remained choppy throughout the day Thursday with prices as high as $98.01 and as low as $96.51 a barrel. Front-month crude gained 4 cents to end the session at $97.44 a barrel.

The U.S. Labor Department said the number of claims for unemployment benefits fell to its lowest level in almost four months last week. According to the report, 398,000 people filed for unemployment benefits; this represents an increase in employment.

In its latest bulletin, the National Hurricane Center reported that Tropical Storm Don has strengthened and is headed toward the Texas coast. Oil majors ExxonMobil, Shell, BP and Anadarko have scaled back production and evacuated non-essential from several platforms in the Gulf of Mexico. Analysts predict output levels should return to normal by Saturday morning.

Traders played it safe Thursday over lingering uncertainty caused by the U.S. debt-ceiling dispute. With an Aug. 2 deadline looming, lawmakers remain deadlocked over a proposal to raise the debt limit.

The Brent benchmark fluctuated between $117.07 and $118.64 Thursday, before settling at $117.36 a barrel.

Natural gas for September delivery fell by 1.7 percent to $4.24 per thousand cubic feet Thursday, thanks to larger-than-expected stockpiles as reported by the Energy Information Administration. The EIA stated that natural gas supplies grew by 43 billion cubic feet for the week ended July 22. As of July 22, inventories were at 2.714 trillion cubic feet, down 2.3 percent from the five-year average.

The intraday range for natural gas was $4.20 to $4.34 per thousand cubic feet.

Reformulated gasoline lost 0.8 percent to settle at $3.12 a gallon. It peaked at $3.17 and bottomed out at $3.09 during Thursday's trading.

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Gulf Weather System Upgraded to Tropical Storm Don

- Gulf Weather System Upgraded to Tropical Storm Don

Thursday, July 28, 2011
Rigzone Staff

The tropical disturbance that has been forming in the Gulf of Mexico has been upgraded to Tropical Storm Don. The National Hurricane Center reported that the storm is moving toward the west-northwest at approximately 10 mph and an increase in forward speed is expected through Friday. As of Thursday morning, the storm's location is approximately 495 miles east-southeast of Brownsville, Texas

Should the storm stay on its present track, its center would move through the southern and central Gulf of Mexico Thursday and approach the Texas coast on Friday. Maximum sustained winds remain near 40 mph and tropical storm force winds extend outward up to 45 miles from the center.

Oil companies have begun evacuating non-essential personnel from offshore installations in the path of the storm. Shell, Apache, Chevron, BP and BHP have said that while evacuations have started, production has not been impacted.

BP has evacuated non-essential personnel from the Atlantis, Mad Dog, and Holstein production facilities located in the southern Green Canyon area. Shell has begun securing well operations and evacuating personnel from the Perdido Spar, Auger platform and the Noble Danny Adkins ultra-deepwater semisub. BHP Billiton has evacuated non-essential personnel from Shenzi which is located in Green Canyon 609 and Neptune which is located in the Atwater Valley area.

Anadarko has evacuated approximately 185 employees and contractors from their Nansen, Boomvang, Gunnison, Red Hawk and Constitution spars as well as the Marco Polo facility in the western Gulf of Mexico. As a precaution, Anadarko is also shutting in production at these facilities.

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General Motors Q1 Sales Up 24.1% YoY (GM)

General Motors Q1 Sales Up 24.1% YoY (GM)

General Motors Co (NYSE:GM) reported Friday that its U.S. sales rose 9.6% year-over-year in March, to 206,621 vehicles.

First quarter sales rose at a blistering 24.1% year-over-year pace, to 592,545 vehicles.

Don Johnson, GM's vice president of U.S. sales operations, said, "Our plan was to get out of the gates quickly in the first quarter and we succeeded."

Chevy's Cruze sedan performed especially well, with sales increasing 287% over the compact car it replaced.

Shares of General Motors are trading down 0.16% at $30.98.