The hidden side of politics

Coast Guard anticipates closing Port of New Orleans and lower Mississippi within several hours

Reported by CNBC: 

The U.S. Coast Guard expects to close the Port of New Orleans and lower Mississippi River by mid-afternoon New Orleans time Friday, officially stopping all commercial shipping ahead of the arrival of Tropical Storm Barry.

A Coast Guard spokeswoman said shipping activity has already been curtailed, ahead of the announcement, which should be made after a 2 p.m. CDT meeting. Previously, the decision was expected to be made by noon.

“The port’s not closed from the Coast Guard standpoint, but people have gotten to the point where they know it will close,” said Lt. Rachel Ault. “For the most part, there’s really no movement.”

Barry’s winds have begun buffeting the Louisiana coast, sections of which are under hurricane watch. The National Weather Service is warning of storm surge and heavy rains from the storm, which has the potential to become the first hurricane of the season.

If Barry becomes a hurricane, it mostly likely will be a Category 1 storm, with much less wind damage potential than other storms that have hit the area. Refineries in its path could be vulnerable to storm surge and other flooding, which could keep personnel from reporting to work.

“Most of the refineries are rated for a Cat 3 and have come through Cat 4 and 5 storms pretty well,” said John Kilduff, partner with Again Capital. “I’m more concerned about the flooding of the Mississippi down by its mouth because of all the water that was already coming down. I’m more worried about the shipping interests, and what it would do to both imports and exports and movement of supply.”

The oil industry has already been moving tankers out of the area and shut in more than half the Gulf of Mexico’s oil production. The government estimates that as of Friday morning, 59% of current production, or 1.1 million barrels of oil per day, had been curtailed, as the industry evacuated workers in the Gulf. About 49% of all natural gas production had also been shut-in.

The U.S. has become the world’s largest oil producer in the last year, producing 12.3 million barrels a day, 1.8 million barrels of that from the gulf. As a result of this boom, the U.S. is now a major exporter, and shipped 3 million barrels a day of U.S. crude last week, while importing 7 million barrels a day.

“We’re seeing 4 million barrels of non U.S. crude that could face delays getting into the south because of Barry. There were a couple of vessels, one called ‘Dubai Glamour’ that was carrying crude from Latin America, that showed a clear diversion this morning. It made a 180 to clear that path,” said Daniel Graeber, chief editor of Clipperdata. The ship was carrying about 500,000 barrels of crude from Columbia to the U.S. gulf coast, he said.

Graeber said Barry strikes as fewer ships and much less oil are on the gulf than at the same time last year. Clipperdata estimates 2.3 million barrels a day has been floating on the gulf in July, down from 14.7 million barrels last year.

“I would just say the U.S. is not really drawing in as much foreign oil as it had been,” he said.

Graeber said Clipperdata expects the federal government to report total U.S. crude exports of 2.3 million barrels a day in its weekly data Wednesday, 729,000 barrels less than last week. Graeber said he also expects the gulf coast area to report slightly more crude, and most of those barrels would be unloaded in Texas, away from the storm zone. He expects 71,000 barrels a day more crude is coming to the the gulf coast area, from 1.9 million barrels last week.

Mike Bradley, energy strategist with Tudor, Pickering, Holt, said U.S. export capacity is about 5 million barrels a day, but most of that is in Texas with just 700,000 barrels in Louisiana.

“I would say we’re not expecting more than 1 million barrels (of crude) to be affected,” said Bradley. He also said he expects about the same amount of imports to be impacted, or delayed by Barry.

“The refineries that are going down are not going to take crude. The ships are going to be sitting in the gulf and hovering around until the refiners take shipments. The imports could be affected by several days, a week at most,” he said.

Bradley said he expects the industry to return personnel to offshore rigs as soon as its safe.

“They’ll probably be out there in the next 24 to 48 hours, putting crews back,” he said, noting the loss of oil output is not huge. “It’s a blip unless there’s damage.”

The industry is not anticipating longer term disruptions from Tropical Storm Barry, but the amount of flooding that comes with the storm could be the wild card, with some forecasts for 20 inches of rain in some spots.

Tom Kloza, head of global energy analysis at Oil Price Information Service, said refineries were all running at high summertime rates, and so far the only refinery that had a precautionary shutdown was Phillips 66‘s Alliance refinery.

Kloza said the refineries have extensive plans for storm-related outages, but they do not include them in any preset schedule. They do plan for seasonal maintenance which is done twice a year before and after summer gasoline production. “They don’t plan to go down in the middle of the season,” he said.

Most refining operations in the area are expected to remain running. Reuters reported that Royal Dutch Shell’s refineries in Norco and Convent, La. plan to remain open, and Exxon was taking steps to minimize the risk of heavy rains for its workers and equipment.

Some refiners could cutback operations, but the process of actually shutting down is much more involved and would take several days to resume.

“They have product on hand, but they have to take the refinery down very carefully and they have to take it back up very carefully. It might be a week before they’re back to normal,” Kloza said.

Kloza said he is watching for possible announcements from two other refineries in Lake Charles. One is owned by Citgo, the other by Phillips 66.

Paul Sankey of Mizuho notes there are refineries with capacity totaling 1.8 million barrels a day in the potential path. 

Like other analysts, Kloza said the storm may not damage much energy infrastructure but it will wreak havoc with the government’s weekly oil market report, watched by the market globally for its supply/demand data. The next report is due Wednesday at 10:30 a.m., and the data could be skewed by the storm. The data could be impacted both by the storm disrupting exports and imports. The industry may also not be as focused on supplying the data in the New Orleans area as it normally would be.

“It really screws up EIA reports next week and perhaps the week after that. We’re going to get some screwed up data. Also, we could get sweet crude go up in price at the Gulf Coast but Cushing doesn’t match it,” he said, suggesting the spot market on the coast could get bid higher than the price of crude at Cushing, the US storage hub.

Source:CNBC

Share

74 Comments

  1. Irene Sutherland Reply

    It’s my belief that mesothelioma is actually the most dangerous cancer. It’s got unusual attributes. The more I actually look at it the more I am sure it does not behave like a real solid flesh cancer. In the event that mesothelioma can be a rogue virus-like infection, in that case there is the chance of developing a vaccine and offering vaccination to asbestos open people who are really at high risk involving developing long run asbestos linked malignancies. Thanks for sharing your ideas for this important ailment.

  2. Warren Watson Reply

    What’s Going down i am new to this, I stumbled upon this I have discovered It positively useful and it has aided me out loads. I am hoping to give a contribution & aid other customers like its helped me. Good job.

  3. Brian Lee Reply

    I do not even know how I ended up here, but I thought this post was good. I don’t know who you are but certainly you are going to a famous blogger if you are not already 😉 Cheers!

  4. Phil Pullman Reply

    Thanks for your article on this blog site. From my personal experience, many times softening way up a photograph might provide the wedding photographer with a chunk of an artsy flare. Many times however, the soft clouds isn’t what precisely you had as the primary goal and can usually spoil an otherwise good picture, especially if you anticipate enlarging them.

  5. Emma Welch Reply

    Aw, this was a very nice post. Finding the time and actual effort to generate a top notch article… but what can I say… I put things off a whole lot and never manage to get nearly anything done.

  6. Isaac Avery Reply

    Hi there, i read your blog from time to time and i own a similar one and i was just wondering if you get a lot of spam remarks? If so how do you protect against it, any plugin or anything you can advise? I get so much lately it’s driving me insane so any help is very much appreciated.

  7. Michelle McLean Reply

    I’m not sure exactly why but this weblog is loading incredibly slow for me. Is anyone else having this issue or is it a problem on my end? I’ll check back later on and see if the problem still exists.

  8. Kylie Buckland Reply

    hi!,I like your writing very much! proportion we communicate extra approximately your article on AOL? I require an expert on this house to solve my problem. Maybe that is you! Having a look forward to look you.

  9. Jessica Nash Reply

    This is the proper weblog for anyone who desires to seek out out about this topic. You realize a lot its virtually exhausting to argue with you (not that I actually would need…HaHa). You undoubtedly put a new spin on a topic thats been written about for years. Great stuff, just nice!

  10. Caroline Gibson Reply

    Hi! This is kind of off topic but I need some advice from an established blog. Is it very difficult to set up your own blog? I’m not very techincal but I can figure things out pretty quick. I’m thinking about setting up my own but I’m not sure where to begin. Do you have any ideas or suggestions? Cheers

  11. Brian Chapman Reply

    Someone essentially help to make seriously posts I would state. This is the first time I frequented your website page and thus far? I amazed with the research you made to make this particular publish extraordinary. Wonderful job!

  12. Anthony Manning Reply

    Greetings! I’ve been following your website for some time now and finally got the bravery to go ahead and give you a shout out from New Caney Texas! Just wanted to say keep up the great job!

  13. Benjamin Bailey Reply

    Very nice post. I just stumbled upon your weblog and wanted to say that I have truly enjoyed browsing your blog posts. After all I’ll be subscribing to your feed and I hope you write again soon!

  14. Vanessa Bond Reply

    Thanks for your content. One other thing is when you are advertising your property yourself, one of the challenges you need to be conscious of upfront is just how to deal with property inspection records. As a FSBO owner, the key about successfully switching your property along with saving money with real estate agent revenue is knowledge. The more you already know, the easier your home sales effort might be. One area where this is particularly crucial is information about home inspections.

  15. Stephen Vaughan Reply

    I like what you guys are up to. Such intelligent work and reporting! Keep up the excellent works guys. I have incorporated you guys to my blogroll. I think it’ll improve the value of my website. 🙂

  16. Lillian Vance Reply

    Wonderful work! This is the type of info that should be shared around the net. Shame on the search engines for not positioning this post higher! Come on over and visit my site . Thanks =)

  17. Lisa Slater Reply

    What i do not understood is actually how you are now not actually a lot more well-appreciated than you may be right now. You are so intelligent. You realize therefore significantly with regards to this subject, made me for my part consider it from so many various angles. Its like men and women don’t seem to be interested except it is something to do with Girl gaga! Your personal stuffs excellent. Always maintain it up!

  18. Joshua King Reply

    obviously like your website but you have to check the spelling on quite a few of your posts. A number of them are rife with spelling issues and I to find it very bothersome to tell the truth however I’ll surely come back again.

  19. Megan Baker Reply

    Unquestionably imagine that which you stated. Your favorite reason seemed to be on the web the simplest factor to understand of. I say to you, I certainly get irked even as other folks think about issues that they just don’t know about. You managed to hit the nail upon the highest as neatly as defined out the entire thing with no need side effect , other people can take a signal. Will probably be back to get more. Thank you

  20. website here Reply

    I simply want to tell you that I am new to blogging and site-building and actually loved you’re page. Most likely I’m planning to bookmark your site . You amazingly have good articles. Kudos for sharing your website.

  21. nbastreams Reply

    There are some fascinating cut-off dates in this article but I don’t know if I see all of them heart to heart. There’s some validity but I will take maintain opinion until I look into it further. Good article , thanks and we want more! Added to FeedBurner as well

  22. Vicente Brandner Reply

    Hey great website! Does running a blog like this take a great deal of work? I have very little knowledge of computer programming however I was hoping to start my own blog in the near future. Anyways, should you have any suggestions or tips for new blog owners please share. I understand this is off subject however I just had to ask. Thank you!

  23. John Deere Repair Manuals Reply

    The next occasion Someone said a blog, I really hope so it doesnt disappoint me about this place. What i’m saying is, Yes, it was my method to read, but I actually thought youd have something interesting to convey. All I hear is a number of whining about something you could fix should you werent too busy searching for attention.

  24. Ngoc Sessler Reply

    It’s the best time to make a few plans for the future and it is time to be happy. I have learn this put up and if I may just I want to counsel you some attention-grabbing issues or advice. Maybe you can write subsequent articles regarding this article. I want to read even more issues about it!

  25. Jonathan Harms Reply

    I’m really enjoying the design and layout of your blog. It’s a very easy on the eyes which makes it much more enjoyable for me to come here and visit more often. Did you hire out a designer to create your theme? Great work!

  26. Willie Links Reply

    Good day very nice website!! Guy .. Excellent .. Amazing .. I’ll bookmark your site and take the feeds additionally…I am glad to seek out so many helpful info right here in the submit, we want develop more strategies on this regard, thank you for sharing.

  27. Silver spring hair salon Reply

    Its like you read my mind! You appear to know a lot about this, like you wrote the book in it or something. I think that you could do with a few pics to drive the message home a bit, but instead of that, this is great blog. An excellent read. I will certainly be back.

  28. Indiy Reply

    hello there and thank you for your info – I have certainly picked up something new from right here. I did however expertise a few technical issues using this site, as I experienced to reload the site lots of times previous to I could get it to load correctly. I had been wondering if your hosting is OK? Not that I’m complaining, but slow loading instances times will sometimes affect your placement in google and could damage your high-quality score if advertising and marketing with Adwords. Anyway I am adding this RSS to my e-mail and could look out for much more of your respective fascinating content. Make sure you update this again very soon..

  29. Faytech North America Reply

    Faytech North America is a touch screen Manufacturer of both monitors and pcs. They specialize in the design, development, manufacturing and marketing of Capacitive touch screen, Resistive touch screen, Industrial touch screen, IP65 touch screen, touchscreen monitors and integrated touchscreen PCs. Contact them at http://www.faytech.us, 121 Varick Street, New York, NY 10013, +1 646 205 3214

  30. Sapid Agency NYC Company Reply

    Sapid Agency is a Search Engine Optimization company in New York City that provides SEO Services. Their proprietary SEO strategies help struggling websites and aspiring business owners to rank their websites higher in multiple search engines like Google , Yahoo and Bing. They provide local and gmb map ranking for businesses in NYC and many other local areas. Find more at https://www.sapidagency.com/ @ 145 E 57TH NEW YORK, NY 10022, USA, +1 971 341 5608 USA

  31. The park at 14th Reply

    Yet another issue is that video games can be serious as the name indicated with the main focus on finding out rather than fun. Although, there’s an entertainment part to keep your sons or daughters engaged, each one game is normally designed to focus on a specific set of skills or program, such as math concepts or research. Thanks for your write-up.

  32. aerial photography Reply

    Greetings! This is my first comment here so I just wanted to give a quick shout out and say I truly enjoy reading through your blog posts. Can you recommend any other blogs/websites/forums that cover the same subjects? Thank you!

  33. large wall clock with numbers Reply

    Its like you read my mind! You seem to know a lot about this, like you wrote the book in it or something. I think that you could do with some pics to drive the message home a little bit, but other than that, this is magnificent blog. An excellent read. I’ll certainly be back.

  34. DC Movers Reply

    Hello There. I found your blog using msn. This is an extremely well written article. I will be sure to bookmark it and return to read more of your useful info. Thanks for the post. I will certainly comeback.

  35. Georgene Wadden Reply

    It’s actually practically extremely difficult to find well-informed people on this niche, unfortunately you come across as like you are familiar with what you’re writing about! Excellent

  36. Faytech North America - Manufacturer for Touch Screen Monitors and PCs Reply

    Faytech North America is a touch screen Manufacturer of both monitors and pcs. They specialize in the design, development, manufacturing and marketing of Capacitive touch screen, Resistive touch screen, Industrial touch screen, IP65 touch screen, touchscreen monitors and integrated touchscreen PCs. Contact them at http://www.faytech.us, 121 Varick Street, New York, NY 10013, +1 646 205 3214.

  37. moving company sarasota Reply

    It is my belief that mesothelioma is definitely the most fatal cancer. It has unusual attributes. The more I look at it the harder I am certain it does not respond like a real solid tissues cancer. In the event mesothelioma is actually a rogue virus-like infection, hence there is the potential for developing a vaccine plus offering vaccination to asbestos open people who are really at high risk involving developing foreseeable future asbestos connected malignancies. Thanks for sharing your ideas on this important health issue.

  38. dotafrog Reply

    you are actually a excellent webmaster. The web site loading speed is incredible. It sort of feels that you’re doing any distinctive trick. Also, The contents are masterpiece. you have performed a magnificent process on this topic!

  39. Ela Carlon Reply

    Howdy there, just started to be mindful of your blog site through Bing, and have found that it’s genuinely helpful. I will be grateful for should you continue on this idea.

  40. DC office movers Reply

    I do trust all of the ideas you have offered in your post. They are really convincing and can certainly work. Nonetheless, the posts are too brief for newbies. May you please extend them a little from next time? Thanks for the post.

  41. raumausstattermeister Reply

    A lot of thanks for all your hard work on this web page. My daughter loves going through internet research and it’s simple to grasp why. We learn all regarding the powerful means you offer very helpful guidance via your website and inspire response from others on this subject matter so our child is without a doubt learning a great deal. Enjoy the remaining portion of the year. You’re the one carrying out a really good job.

Leave a Reply

Your email address will not be published. Required fields are marked *

FOLLOW @ NATIONAL HILL