The BSEE.org said on Wednesday that personnel had been evacuated from a total of 119 production platforms, 18.51% of the 643 manned platforms in the Gulf of Mexico as a result of Hurricane Sally. This resulted in approximately 27.48% of oil production and 29.7% of natgas production being shut-in. Reports suggest that personnel have already started to return to some offshore platform, and therefore we should expect some of that production resume going into the weekend.
Phillips 66 , which shut its 255 kbpd Alliance oil refinery ahead of the storm, said it was advancing planned maintenance at the facility and would keep processing halted. Royal Dutch Shell ‘s chemical plant and refinery in Mobile Alabama, reported no serious damage from an initial survey. Chevron said its Pascagoula, Mississippi, oil refinery operated normally through the storm.
Apart from its effects on the offshore oil and gas production, Hurricane Sally unloaded 20 to 30 inches of rain in coastal Alabama and the Florida Panhandle.
Today’s Fundamentals:
Daily US natural gas production is estimated to be 86.6 Bcf/d this morning. Today’s estimated production is +0.8 Bcf/d to yesterday, and -0.55 Bcf/d to the 7D average. Northeast production saw a big drop yesterday, which came back online today. Production in the GoM should start to return today after Hurricane Sally led to the evacuation of a number of offshore platforms.
Natural gas consumption is modelled to be 70 Bcf today, +2.12 Bcf/d to yesterday, and +1.94 Bcf/d to the 7D average. US power burns are expected to be 34.24 Bcf today, and US ResComm usage is expected to be 9.3 Bcf.
Net LNG deliveries are expected to be 7.5 Bcf today.
Mexican exports are expected to be 6.3 Bcf today, and net Canadian imports are expected to be 3.6 Bcf today.
Bloomberg IM: Het Shah
enelyst DM: @het.co
Tel: 917-975-2960
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ION-Energy-Daily-Report-Sept-17-2020.pdf