Mark Twain once wrote, “Everybody talks about the weather, but nobody does anything about it.” Quite a historical distance from Twain’s editorial in the (Connecticut) 1897 edition, today’s top midstream players are, in fact, doing something about the weather—specifically, how they prepare, respond and recover from major weather events.

North America arguably faces more extreme weather events than any other continent on the planet with threats that include hurricanes, blizzards, flooding, tornadoes, lightning and high winds. As the U.S. becomes a key competitor in the oil and gas export arena, protecting operations from the unpredictability of weather is more important than ever for companies ranging from remote Alaska to populous Houston.

Weather’s ripple effect

A recent study by Forrester Research reveals that weather is the leading cause of business disruptions. No other industry understands this challenge more than midstream operators who must constantly be on alert for weather threats that could halt the transportation of products and damage or destroy equipment.

Just one hiccup in the transfer of crude oil or natural gas can have ripple effects from the upstream to the downstream sectors. If a midstream operator cannot transport the product from production operations to the appropriate refinery, these delays will cost thousands, perhaps millions, of dollars for all parties involved.

In the face of a weather-related disruption, upstream operators must try to find a new transportation route or provider, while the downstream companies are forced to operate at sub-optimal capacity with limited supplies. When crude or gas production is curtailed or shutdown due to bad weather, the products located within the pipeline have nowhere to go and cannot be pushed out. In turn, the price of gas for the consumer increases because of limitations imposed on the supply.

In 2008, Hurricanes Ike and Gustav caused widespread destruction across the Gulf Coast, with both offshore and onshore pipelines shut down due to hurricane damage and power outages. These shutdowns forced natural gas transportation to be halted completely in certain locations. It took many companies months before they could repair the damage and return pipelines to full operations.

Gulf Coast processing facilities sat idle for days following the hurricanes because of supply chain and logistical disruptions. According to the U.S. Energy Information Administration, these storms caused daily gas production to fall by 68%, compared to the previous month in 2008.

Winter weather woes

Hurricanes aren’t the only major storm system that can disrupt midstream operations. Blizzards can cause major transportation and logistics nightmares, including freezing rain, deep snow drifts and icy roads. Freezing rain and ice on roads and railroad switch points can cause safety hazards for employees. Ice can bend or buckle the railways, while slick roads mean major headaches for heavy trucks and equipment transport companies.

Pipeline operators must be even more vigilant during winter months when rivers and creeks are threatened by freezing conditions and the ensuing flooding that comes with a thaw. For example, in a remote part of Montana, a pipeline belonging to one of the world’s leading oil and gas corporations passes through a river. In 2011, a major flooding event occurred, causing debris to strike the pipeline and crack it. Hazardous chemicals spilled into the river, creating a U.S. Environmental Protection Agency recordable incident and subsequent legal troubles for the company.

Oil and gas terminals and storage facilities are also susceptible to harsh weather, especially severe thunderstorms that produce lightning, tornadoes and high winds. Causing serious injuries, or worse, death, these storms can develop year-round and are particularly prominent ahead of strong cold fronts. During a severe thunderstorm in 2008, a tornado struck a compressor station in Tennessee, resulting in an explosion and subsequent fire. The company faced the costly expense of facility repairs that could have been avoided by staying one step ahead of the storm and preparing for the potential impact.

Setting the standard

Extreme weather is the new norm across North America, requiring oil and gas operators to invest in strategic methods for protecting assets, personnel and operations. Many oil and gas operators are now tapping into additional weather support from private weather service providers to produce site-specific, highly customized and accurate forecasts.

Even though some operators still rely on publicly available weather information from Smartphone applications or the Internet, the limitations of this data is especially apparent in rural locations and those far from radar stations managed by the National Weather Service (NWS). Public weather information such as that disseminated by the NWS is created to serve major population centers. The NWS is mandated by Congress to protect people and cities—not to serve businesses or commercial endeavors.

Due to the NWS’ limitations, site-specific monitoring offered by private weather service providers is an increasingly sought-after solution among the oil and gas community that operate in rural terrain. Based on a company’s weather challenges, specific proprietary services such as Lightning Proximity Alerts, Thermal Work Limits or Flood Risk Outlooks can meet the unique needs and threat thresholds of each client.

Proven results

Since each midstream operator faces a set of exclusive weather threats, no two weather monitoring services are identical.

For example, to combat spring flooding, proprietary services, such as Flood Risk Outlooks and Critical Flood Advisories (CFA), enable companies to identify the risk of river flooding as much as 10 days in advance. As flood events unfold, the CFAs are issued for specific locations— such as points along a pipeline—which are at risk. Additional support is provided by expert meteorologists by phone, email and conference calls with key personnel at the client company. Through this highly specialized service, the client can rest assured that important assets are being watched 24 hours a day, seven days a week.

There are other examples as well. Through access to the world’s largest and fastest lightning data network, Severe Thunderstorm Alerts provide an average lead time of 27 minutes, which is 50% greater than the NWS weather warnings. Additionally, Lightning Proximity Alerts monitor both cloud-to-cloud and cloud-to-ground strikes that could cause a fire or explosion near a terminal or storage facility or pose grave danger to personnel in the field.

An earthquake occurring near a pipeline can cause ruptures that necessitate an environmental response. Earthquake Proximity Alerts are sent to companies when a specific strength earthquake is occurring within a predefined radius of a monitored asset.

These select services enable midstream companies to stay one step ahead of both severe weather and competitors who do not avail themselves of this critical information. From delays in scheduling to reduced personnel safety, legal liabilities, profit leaks and the loss of market share, companies face a variety of challenges from weather disruptions.

However, with the help of site-specific weather forecasting and monitoring, weather worries are mitigated, allowing midstream businesses to focus on maximizing uptime and achieving stellar safety records.

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