Storm-weary U.S. offshore energy firms prep for massive hurricane

By Erwin Seba

HOUSTON (Reuters) – Oil and gas workers withdrew en masse from U.S. offshore production facilities and onshore refineries began preparations on Wednesday as Hurricane Delta was forecast to grow into a powerful storm over the Caribbean on its way to the Gulf of Mexico.

Delta’s winds declined to 105 miles per hour (169 kph) as it tore across Mexico’s Yucatan peninsula early Wednesday. It is expected to enter the Gulf of Mexico and re-intensify into a Category 3 storm, the National Hurricane Center said.

Oil producers had evacuated 57 production facilities in the U.S. Gulf of Mexico by Tuesday and halted 540,000 barrels per day of oil and 232 million cubic feet per day of natural gas production. The region accounts for about 17% of U.S. oil output.

Onshore energy facilities and export ports began securing operations. Royal Dutch Shell Plc was preparing three refineries in Convent, Geismar and Norco, Louisiana, for Delta’s arrival. Louisiana Offshore Oil Port, the sole deep water port on the Gulf of Mexico, halted seaborne exports and imports.

After weakening over the Yucatan, Delta is expected to re-strengthen and grow into a massive storm. A “life-threatening storm surge and strong winds are likely over a large portion of the northwestern and northern Gulf coast,” the NHC said.

Energy prices were mixed. Natural gas futures were up nearly 2% on storm shut-ins and export disruptions. U.S. crude oil and gasoline futures each fell about 3%.

Delta is expected to strike the U.S. Gulf Coast on the weekend as the 10th named storm to make a U.S. landfall this year, eclipsing a record that has held since 1916.

Oil companies have had to evacuate workers repeatedly this year with departures and returns complicated by pandemic related quarantines and virus testing for offshore staff.

Delta’s evacuations were at least the sixth time that some companies have had to remove staff and curtail production since June.

W&T Offshore Inc, one of the smaller Gulf of Mexico producers, estimated the storms cost it 9,000 barrels of oil and gas per day in the latest quarter, more than a fifth of its targeted output.

Phillips 66 said Delta would delay the restart of its Lake Charles refinery, a Louisiana plant shut by August’s Hurricane Laura. A second plant, on the Louisiana coast, has remained closed since a mid-September storm for maintenance.

Shell, the largest Gulf of Mexico offshore oil producer by volume, evacuated staff from nine facilities and Chevron Corp evacuated and shut production on all its Gulf of Mexico platforms. BP Plc, BHP, Occidental Petroleum Corp, and Murphy Oil pulled workers out and halted some production.

(Reporting by Erwin Seba; writing by Gary McWilliams; Editing by Leslie Adler and Marguerita Choy)

Trump tours parts of Louisiana, Texas hit by Hurricane Laura

By Nandita Bose

ORANGE, Texas (Reuters) – President Donald Trump on Saturday toured areas hit by Hurricane Laura in Louisiana and in Texas receiving briefings on emergency operations and relief efforts.

“One thing I know about this state, it rebuilds fast,” Trump told a gathering that included Louisiana Governor John Bel Edwards, U.S. lawmakers and federal agency officials. Trump did not meet with residents.

The massive storm hit Louisiana early on Thursday with 150 mile-per-hour (240 kph) winds, damaging buildings, knocking down trees and cutting power to more than 650,000 people in Louisiana and Texas. However, Laura’s storm surge was much less than predicted.

The Category 4 hurricane killed at least 15 people, including some killed by carbon monoxide poisoning from the unsafe operation of generators. Governor Edwards called Laura the most powerful hurricane to strike Louisiana, surpassing even Katrina, which was a Category 3 storm when it hit in 2005.

Trump told officials, referring to those who were lost, “It’s a tremendous number, but you were thinking it could be, could have been, a lot worse.”

Trump signed a disaster declaration for Louisiana on Friday.

He also met with National Guard personnel in Louisiana helping with relief efforts and later flew to Orange, Texas, to meet with officials.

After meeting officials in Lake Charles, Trump said “come here fellas, I want a little power,” and began autographing pieces of paper. He gave a law officer one and said “Here sell this tonight on Ebay, you’ll get $10,000.”

(Reporting by Nandita Bose in St. Charles, La., and Timothy Gardner in Washington; Editing by Matthew Lewis and Daniel Wallis)

Hurricane Laura slams Louisiana, kills six, but less damage than forecast

By Elijah Nouvelage and Ernest Scheyder

LAKE CHARLES, La. (Reuters) – Hurricane Laura tore through Louisiana on Thursday, killing six people and flattening buildings across a wide swatch of the state before moving into Arkansas with heavy rains.

Laura’s powerful gusts uprooted trees – and four people were crushed to death in separate incidents of trees falling on homes. The state’s department of health said late Thursday that there were two more fatalities attributed to the hurricane – a man who drowned while aboard a sinking boat and a man who had carbon monoxide poisoning caused by a generator in his home.

In Westlake, a chemical plant caught fire when hit by Laura, and the flames continued to send a chlorine-infused plume of smoke skyward nearly 24 hours after landfall.

Laura caused less mayhem than forecasts predicted – but officials said it remained a dangerous storm and that it would take days to assess the damage. At least 867,000 homes and businesses in Louisiana, Texas and Arkansas remained without power on Thursday afternoon.

“This was the most powerful storm to ever make landfall in Louisiana,” Governor John Bel Edwards told a news conference. “It’s continuing to cause damage and life-threatening conditions.”

Laura’s maximum sustained winds of 150 miles per hour (241 kph) upon landfall easily bested Hurricane Katrina, which sparked deadly levee breaches in New Orleans in 2005, and arrived with wind speeds of 125 mph.

The NHC said Laura’s eye had crossed into southern Arkansas late Thursday afternoon and was heading to the northeast at 15 mph (24 kph). The storm could dump 7 inches (178 mm) of rain on portions of Arkansas, likely causing flash floods.

Laura was downgraded to a tropical depression by the NHC at 10 p.m., and the forecaster said it will move to the mid-Mississippi Valley later on Friday and then to the mid-Atlantic states on Saturday.

CHEMICAL PLUME

Laura’s howling winds leveled buildings across a wide swath of the state and a wall of water that was 15 feet (4.6 m) high crashed into tiny Cameron, Louisiana, where the hurricane made landfall around 1 a.m.

A calamitous 20-foot storm surge that had been forecast to move 40 miles (64 km) inland was avoided when Laura tacked east just before landfall, Edwards said. That meant a mighty gush of water was not fully pushed up the Calcasieu Ship Channel, which would have given the storm surge an easy path far inland.

Tropical-force winds were felt in nearly every parish across Louisiana – and Edwards warned that the death toll could climb as search and rescue missions increase.

CLEANUP BEGINS

Residents of Lake Charles heard Laura’s winds and the sound of breaking glass as the storm passed through the city of 78,000 with winds of 85 mph and gusts up to 128 mph in the hour after landfall.

National Guard troops cleared debris from roads in Lake Charles on Thursday afternoon. There were downed power lines in streets around the city, and the winds tipped a few semi-trucks onto their sides.

The windows of the city’s 22-story Capital One Tower were blown out, street signs were toppled and pieces of wooden fence and debris from collapsed buildings lay scattered in the flooded streets, video footage on Twitter and Snapchat showed.

Lake Charles resident Borden Wilson, a 33-year-old pediatrician, was anxious about his return home after evacuating to Minden, Louisiana.

“I never even boarded up my windows. I didn’t think to do that. This is the first hurricane I’ve experienced. I just hope my house is fine,” he said in a telephone interview.

(Reporting by Elijah Nouvelage in Lake Charles, La., Ernest Scheyder in Starks, La., Brad Brooks in Lubbock, Texas, Jennifer Hiller and Gary McWilliams in Houston, Liz Hampton in Denver, Timothy Ahmann, Susan Heavey and Daphne Psaledakis in Washington, Gabriella Borter and Peter Szekely in New York; Writing by Gabriella Borter and Brad Brooks; Editing by Matthew Lewis and Stephen Coates)