Highlights: Facts on Offshore Petroleum, Natural Gas Production in the Southeast Beats its Year Low since Hurricane Barry Bar

According to the National Hurricane Center, Hurricane Barry made landfall on the shores of Louisiana on Saturday at noon, as winds were barely meeting the criteria, but floods and storm surges persist in low-lying areas. .

The NHC brought the storm back to a tropical depression as it headed for the land.

More than 110,000 customers have experienced blackouts in the affected areas of Louisiana and Mississippi, which electricity traders seem to have anticipated, judging by delivery prices on Saturday.

COMMERCIAL FLOWS

** On the border between Louisiana and Texas, Sabine pilots suspended their services Saturday afternoon due to strong winds in the sea of ​​sand, according to the notes of the sender. The state of Yankee harbor was scheduled for Thursday port.

** The port of New Orleans Friday was set at Port Condition Zulu, closing it to incoming traffic.

** Along the more western Gulf Coast export facilities, shipping restrictions were lifted and operations returned to normal, with the USCG canceling the condition's whiskey. port in force at the ports of Houston, Galveston, Freeport and Texas City.

** Maritime traffic disruptions caused by US Gulf Coast port closures have supported the European diesel and gasoline markets, as market participants anticipate delays in obtaining fuel from the United States. Gulf Coast products, resulting in lower prices for refined products.

PRICES

** NYMEX August RBOB settled on Friday down 1.25 cents to 1.9770 USD / gal, while August's ULSD rose 15 points to 1.9801 USD / gal.

** In the spot market, USGC RBOB at 7.8 VPR was traded at NYMEX RBOB plus 3.5 cents / gallon on Friday morning, compared to more than 2.25 cents / gall on Thursday, a level unparalleled since the beginning of May.

** Daily marginal prices for optimal locations Friday for central Louisiana, an independent operator of the Midcontinent, set at $ 25.51 / MWh for electricity delivered Saturday, down from 27 , 31 $ / MWh last Saturday, despite forecasts of MISO for an increase in overall demand footprint – 106.7 GW, against 100.5 GW last Saturday.

** Most of the southeastern regions experienced a slight fluctuation in natural gas prices at Friday's close, stabilizing a few cents from Thursday's close.

** Henry Hub rose 1 cent Friday to $ 2,485 / MMBtu; The Florida gas zone 3s is set at 2.5 US cents / 2.5 billion; and Texas Gas Zone 1 settled 3.5 cents lower at $ 2.28 / MMBtu.

** Houston Ship Channel fell 4.5 cents on Friday to 2.39 USD / MMBt, and Katy Hub fell 3 cents to 2.395 USD / MMBtu.

INFRASTRUCTURE OF OIL AND GAS

** Approximately 1.3 million b / d, or 70% of oil production and 1.54 Bcf / d, or 55.6% of natural gas production in the Gulf of Mexico, remained closed. Approach from Barry, from the US Bureau of Safety and Environmental Application said Saturday.

** ExxonMobil's 502,500 bpd Baton Rouge refinery was watching the storm on Friday, with no impact on operations, but a spokesman for the company said Saturday that the refinery would provide an update later in the day on the possible impact of Barry on the factory operations. .

** Phillips 66 said Saturday that there was no significant impact on the Alliance Refinery. The 294,700 bpd refinery ended its normal business ahead of Friday morning's storm.

** Offshore natural gas production was able to add about 40 MMcf / d per day, bringing production to about 1.3 Bcf / d, halting the five-day drop since Monday, when production was 2.9 Bcf / d.

** Barry is about to go directly to the Louisiana part of the Haynesville Shale, where flooding could result in a temporary downturn in production.

LNG INFRASTRUCTURE

** LNG feed gas demand continues to recover after Friday deliveries to Sabine Pbad and Cameron LNG terminals.

** Since their decline to 2.9 Bcf / d of Thursday's feed gas demand, marking the lowest levels since Sabine pbad maintenance in mid-April, deliveries in the US have been slow. installation rebounded to 30 days, reaching 3.7 Bcf / d Saturday.

** Although port restrictions have temporarily suspended pilot services along the waterway connecting the Cameron LNG terminal to the Cameron Pipeline, LNG production from the facility appears to be underway, gas deliveries are continuing. Having been recovered at more than 600 MMcf / d in the last two days. MMcf / d Thursday.

POWER INFRASTRUCTURE

** More than 110,000 customers have experienced power outages in the affected Louisiana and Mississippi areas, which electricity operators seem to have anticipated, judging from Saturday prices.

Entergy's public services in Louisiana mobilized more than 2,900 workers on Saturday morning to restore power where it is safe to do so.

** Challenges include "road closures and flood dams, impbadable roads due to floods and high winds preventing the use of bucket trucks in some areas," Entergy said in a statement.

** The total demand for natural gas energy consumption in the Southeast continues to decline as demand has fallen by 0.6 Bcf / d per day, bringing the total demand reduction to 1.7 Bcf / d. / d from the top of the week of 13.4 Bcf / d set for the high of the week.

** The power consumption of the Louisiana sample decreased by about 240 MMcf / d, or 15%, from levels recorded on Wednesday.

INFRASTRUCTURE OF METALS

** Freight terminals in New Orleans ports and the New Orleans Public Belt Railroad ceased operations at noon CET on Thursday.

** The port of New Orleans is a major hub of trade in steel and nonferrous metals, which also deals with various other cargoes, such as rubber, wood, paper, plastic and other basic products.

** The doors of Napoleon Avenue Container Terminal are closed Thursday at noon. Due to planned closures of flood gates, the terminal will remain closed on Friday, but this may change depending on conditions.

INFRASTRUCTURE OF PETROCHEMICAL PRODUCTS

** Chemical companies operating in Louisiana on Barry Road monitored the storm and prepared their sites for heavy rains, but their operations remained normal.

** The approach of the storm has given some companies with new plants the opportunity to implement storm plans that could have been adjusted to accommodate additional facilities.

– Staff Report, [email protected]

– Edited by Jason Lindquist, [email protected]