Energy companies on Aug. 28 continued efforts to restore operations at U.S. Gulf Coast offshore platforms and refineries shut by Hurricane Laura as oil markets largely shrugged off the storm’s impact.
Some 300 offshore production facilities and half-dozen refineries halted ahead of a Category 4 storm that hit the coast of Louisiana early Aug. 27 with winds of 150 mile per hour (240 kph). The destructive winds cut a narrow path through the area, sparing facilities not directly in its path.
However, repairs to Citgo Petroleum’s 418,000 bbl/d Lake Charles, Louisiana, plant that was on the storm’s path could take four to six weeks, according to Mizuho Securities. The company did not immediately reply to a request for comment.
Motiva Enterprises, operator of the largest U.S. refinery, and Valero Energy Corp. on Aug. 28 began restarting their Port Arthur, Texas, refineries, said people familiar with plant operations.
U.S. crude futures traded at $43.10 per barrel early Aug. 28, up six cents, and not far from its $42.34 level a week ago. U.S. gasoline futures were up two cents, but are up less than 2% from a week ago, before the storm.
Exxon Mobil Corp. said its 369,024 bbl/d Beaumont, Texas, refinery, about 50 miles (80 km) west of where the storm’s landfall, required “minor repairs,” a spokesman said, and the company was taking steps to restart once power and port operations were restored.
“Refiners may be reluctant to quickly return to production when the product they make is a money losing proposition,” Robert Yawger, director of energy futures at Mizuho Securities, wrote on Friday.
The ports of Beaumont, Orange and Sabine, Texas, and Cameron and Lake Charles, Louisiana, remained closed Aug. 28, according to the U.S. Coast Guard.
Houston, the United States’ largest energy export port, restarted operations Aug. 27 and had nearly halved the list of 53 vessels waiting that day to reenter the port.
One-way movement and other restrictions were in place Aug. 28 at points along the Houston Ship Channel, according to the U.S. Coast Guard.
Recommended Reading
Matador Appoints Paul W. Harvey to Board
2025-01-29 - Harvey holds over 40 years of investment experience and is currently the private wealth adviser at Dallas-based Vaquero Private Wealth.
Hess Midstream Signs Deal to Repurchase $100MM of Class B Units
2025-01-14 - Hess Midstream said the repurchase is expected to result in increased distributable cash flow per Class A share.
EnLink Investors Vote in Favor of ONEOK Buyout
2025-01-30 - Holders of EnLink units voted in favor of ONEOK’s $4.3 billion acquisition of the stock, ONEOK announced Jan. 30.
Dividends Declared Week of Jan. 13
2025-01-17 - With 2024 year-end earnings season underway, here is a compilation of dividends declared from select upstream, midstream and downstream companies.
Independence Contract Drilling Emerges from Chapter 11 Bankruptcy
2025-01-21 - Independence Contract Drilling eliminated more than $197 million of convertible debt in the restructuring process.