{"id":83362,"date":"2021-09-08T14:02:54","date_gmt":"2021-09-08T18:02:54","guid":{"rendered":"http:\/\/stateofthenation.co\/?p=83362"},"modified":"2021-09-08T14:02:54","modified_gmt":"2021-09-08T18:02:54","slug":"these-gom-superstorms-always-conveniently-hit-the-us-oilgas-industry-when-they-want-to-increase-gas-prices","status":"publish","type":"post","link":"https:\/\/stateofthenation.co\/?p=83362","title":{"rendered":"These GOM superstorms always conveniently hit the US Oil&#038;Gas Industry when they want to increase gas prices."},"content":{"rendered":"<h1>Ida Hit Crushes Crude Output In Gulf Of Mexico, Ranked Worst In 16 Years<\/h1>\n<p><!--more-->ZeroHedge.com<\/p>\n<p>Hurricane Ida&#8217;s disruption to the U.S. offshore energy production in the Gulf of Mexico is the worst in 16 years.\u00a0It has already stressed\u00a0domestic and global supply chains, further testing the Federal Reserve&#8217;s &#8220;transitory&#8221; inflation narrative.<\/p>\n<p>Gulf Coast hurricanes usually cause minor disruptions in offshore oil and gas production, but this time around, output from the region has been significantly reduced due to Ida&#8217;s 150 mph winds that damaged platforms and onshore support facilities.<\/p>\n<p>What this will mean is a long recovery for offshore energy production to return.\u00a0<a href=\"https:\/\/www.reuters.com\/business\/energy\/oil-losses-hurricane-ida-rank-among-worst-16-years-2021-09-07\/\">Reuters<\/a>\u00a0notes\u00a079% of the region&#8217;s offshore oil production remains offline.<\/p>\n<div class=\"Advert_desktop__1J5vD Advert_tablet__3QEBr Advert_mobile__1rlLc Advert_placement__1I4yb Advert_align__N0_fw\">\n<aside id=\"in-content-video\" class=\"Advert_verticallySpaced__wnPy3\">\n<div id=\"google_ads_iframe_\/21841313772,21778456762\/zerohedge\/in_content_video_0__container__\"><\/div>\n<div id=\"google_ads_iframe_\/21841313772,21778456762\/zerohedge\/in_content_video_1__container__\"><\/div>\n<\/aside>\n<\/div>\n<p>Since the first oil platforms were\u00a0<a href=\"https:\/\/www.zerohedge.com\/energy\/gulf-mexico-drillers-shut-more-82-oil-production?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">evacuated ahead of Ida<\/a>, there&#8217;s been a loss of 17.5 million barrels of oil. Some energy analysts are expecting U.S. production could drop by 30 million barrels this year due to the sluggish return.<\/p>\n<p><em>&#8220;After Katrina, which made landfall 16 years ago on the same day as Ida did this year, it was well into the following year before oil production resumed its normal level,&#8221; Commerzbank analyst Carsten Fritsch told clients. &#8220;That said, Katrina was followed shortly after by another devastating hurricane, namely Rita.&#8221;<\/em><\/p>\n<p>There is currently a disturbance in the Gulf of Mexico that has a 50% chance of developing over the next two days.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/2021-09-08_07-44-53.png?itok=-LcNqTcJ\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/2021-09-08_07-44-53.png?itok=-LcNqTcJ\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/2021-09-08_07-44-53.png?itok=-LcNqTcJ\" alt=\"\" width=\"500\" height=\"370\" data-entity-type=\"file\" data-entity-uuid=\"ba8e0b21-be0f-4df7-af52-df163ef2cd52\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p>The outage has left a noticeable imprint on NYMEX West Texas Intermediate futures hovering around the $70 handle, up more than 11% since weather models first forecasted Ida would make landfall around the Louisiana region.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/Snag_228678ae.png?itok=geOPJCYD\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/Snag_228678ae.png?itok=geOPJCYD\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/Snag_228678ae.png?itok=geOPJCYD\" alt=\"\" width=\"500\" height=\"353\" data-entity-type=\"file\" data-entity-uuid=\"0cd65e79-90ef-4527-9ac9-f583cbccc042\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p>There&#8217;s no clear timeline when full production will return.<strong>\u00a0<\/strong><em><strong>&#8220;There could be volumes that are offline for a considerable amount of time,&#8221;<\/strong>\u00a0said Facts Global Energy (FGE) consultant Krista Kuhl. &#8220;It&#8217;s just too early to tell.&#8221;<\/em><\/p>\n<div class=\"Advert_tablet__3QEBr Advert_mobile__1rlLc Advert_placement__1I4yb Advert_align__N0_fw\">\n<aside id=\"in-content-1\" class=\"Advert_centered__2tRj9 Advert_verticallySpaced__wnPy3\">\n<div id=\"google_ads_iframe_\/21841313772,21778456762\/zerohedge\/in_content_1_0__container__\"><\/div>\n<div id=\"google_ads_iframe_\/21841313772,21778456762\/zerohedge\/in_content_1_1__container__\"><\/div>\n<\/aside>\n<\/div>\n<p>The Gulf of Mexico commands about 16% of total U.S. crude production, with 1.8 million barrels of oil per day. The numbers for total US crude production are expected to drop sharply in future energy reports.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/change_0.jpg?itok=Ec31VVgR\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/change_0.jpg?itok=Ec31VVgR\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/change_0.jpg?itok=Ec31VVgR\" alt=\"\" width=\"500\" height=\"271\" data-entity-type=\"file\" data-entity-uuid=\"9d8ec43e-4d83-43ca-bff3-6c47cc41a28a\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p>Restoring output will take time as offshore oil and gas rigs and\u00a0transfer facilities need\u00a0critical repair after the storm damage.<\/p>\n<p>On land, the petrochemical sector has experienced disruptions due to plant shutdowns. We noted Tuesday, a top\u00a0nitrogen fertilizer plant in\u00a0Louisiana declared &#8220;<a href=\"https:\/\/www.zerohedge.com\/commodities\/worlds-largest-nitrogen-plant-declares-force-majeure-sends-fertilizer-price-sky-high\">force majeure<\/a>.&#8221;\u00a0Also, the import\/export of critical raw materials has been affected, if that is by rail, trucking, or be sea.<\/p>\n<p>Ida is tightening the global supply of some commodities and has created a logistical nightmare for major ports in the Gulf that could pressure some commodity prices higher and hurt consumers even more.<\/p>\n<div class=\"Advert_tablet__3QEBr Advert_mobile__1rlLc Advert_placement__1I4yb Advert_align__N0_fw\">\n<aside id=\"in-content-2\" class=\"Advert_centered__2tRj9 Advert_verticallySpaced__wnPy3\">\n<div id=\"google_ads_iframe_\/21841313772,21778456762\/zerohedge\/in_content_2_0__container__\"><\/div>\n<div id=\"google_ads_iframe_\/21841313772,21778456762\/zerohedge\/in_content_2_1__container__\"><\/div>\n<\/aside>\n<\/div>\n<p>Meanwhile, the Federal Reserve continues to reassure everyone that inflation is &#8220;transitory.&#8221;<\/p>\n<p>___<br \/>\n<a href=\"https:\/\/www.zerohedge.com\/commodities\/ida-hit-crushes-crude-output-gulf-mexico-ranked-worst-16-years\">https:\/\/www.zerohedge.com\/commodities\/ida-hit-crushes-crude-output-gulf-mexico-ranked-worst-16-years<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ida Hit Crushes Crude Output In Gulf Of Mexico, Ranked Worst In 16 Years<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-83362","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts\/83362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=83362"}],"version-history":[{"count":0,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=\/wp\/v2\/posts\/83362\/revisions"}],"wp:attachment":[{"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=83362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=83362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateofthenation.co\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=83362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}