Tuesday, August 29, 2006

One Year After Katrina, Oil and Natural Gas Production Still Hamstrung

From the Houston Chronicle:

In all, Hurricane Katrina destroyed 46 offshore platforms and Hurricane Rita destroyed 69, according to the Minerals Management Service, an agency of the Department of the Interior.

Insurance companies like AON and Willis have estimated the total damage price tag for the industry at about $15 billion.

The most recent report on shut-in production says 12 percent of the Gulf's oil output and 9 percent of its natural gas production remains off line.

David Pursell, an analyst with Houston's Pickering Energy Partners, said most companies don't expect to see the Gulf's oil and gas output reach pre-Katrina levels until next year.

Some lost wells may not be restarted at all given the extent of the damage for many low volume wells.
Thanks to Walter Taylor for the pointer.

Technorati tags: , , , ,

No comments: