US Natural Gas Production ‘Crippled For Months’

[Strelnikov_]

One more reason that we are heading into the 'Winter Of Our Discontent'.

Economy
Energy
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Survival

What I find interesting is that it seems to be severe damage to on-shore facilities that causing problems. This seems to me to be another failure of the free-market energy infrastructure system. That is, providing adequate protection/redundancy to energy infrastructure impacts profit, so it was not performed.

I mean, who could have ever imagined a hurricane in the GOM?

US Natural Gas Production ‘Crippled For Months’
September 14 2005

http://news.ft.com/cms/s/0d4bb9e4-2562-11da-98dc-00000e2511c8,_i_rssPage=9d5b9ebe-c8bc-11d7-81c6-0820abe49a01.html

Three weeks after Hurricane Katrina struck one of the world’s most important natural gas producing regions, 35 per cent of Gulf of Mexico production remains off-line, and analysts say gas production there will remain “crippled for months”.

Some analysts predict natural gas prices will average $12 per thousand cubic feet this winter – double the cost last winter. Jason Gammel of Prudential Equity Group believes higher natural gas prices will be more important for US consumers than high petrol prices, which already average more than $3 per gallon.

. . .

“For almost five years, manufacturers, homeowners, farmers and other consumers have been adversely affected by the significant impact of high natural gas prices,” the association said. “During that time, the price has increased more than 400 per cent, which is far higher than crude oil or gasoline, and the situation continues to worsen.”

. . .

Much will depend upon the state of the four refineries believed to be most damaged. There has been little information so far, but analysts suspect they suffered extensive damage and will be shut for months. “Given that US refining capacity was constrained before Katrina, we can little afford to have 5 per cent of US refining capacity off-line, especially as we head into winter,” JPMorgan said.
Deepwater assessments remain preliminary, Wood Mackenzie says, but companies are reporting more than 37 shelf platforms destroyed and 12 others significantly damaged. Several natural gas processing plants have suffered direct damage, and outages could last for months.

[Eurobabe]

1. You think *'s poll numbers are low now??

Wait till mid-January. He'll be run outta town on a rail!

[tex-wyo-dem]

6. And when the higher gasoline prices really sink in...

and bubba down the street needs to get rid of his monster truck to feed his family, there will be hell to pay.

[Imagevision]

2. Three more years to go with Bush? the country will be on its knee's

we have to prepare for the worse is yet to come scenario's with this fluke for a president.

[Delphinus]

17. That's what so scary!

Looking at how bad things are today, and knowing we've got three more, long, unbearable years of the boy king at the helm, makes me sick to my stomach.

[leftupnorth]

3. I work in Natural Gas extraction

I can tell you, these companies will do ANYTHING to gain more profit.

They will only move faster to get things back on line if they thought it would make them more money. Watch for the Nat. gas refineries to come on line about mid-January, just when the price of gas is peaking.

No conspiracy here, just sound Conservative businessman philosophy. I know because i work for some.

[FSogol]

5. Exactly. They are pulling a California Energy Crisis using...

Katrina as an excuse. Rampant profiteering while and Energy Company Administration turns a blind eye.

[tex-wyo-dem]

7. Yes, they will do anything...

my home state of Wyoming is almost literally being taken over by gas producers who don't give a shit about anything but huge profits, and many things, especially the environment, are suffering for it.

The primary player in Wyoming's gas production you ask? Hint: it begins with "H" and ends with "N" and it's former CEO wants to go to war with Iran and hails from Wyoming...oh yeah, and he's the VP.

[leftupnorth]

10. I heard

That the cattle ranchers in Wyo are pissed because the gas companies are depleting the aquifer they use to water cattle. Is that true?

It makes sense bacuse natural gas is usually found with deposits of water - usually brine, but sometimes fresh - and the water table starts dropping beacuse the gas companies pump the water out of one section of the earth's crust, extract the gas, and pump the water back down into the ground, usually deeper than where they found it.

Have you heard anything about this?

[tex-wyo-dem]

13. Yes, this is one of many issues.

The main areas of development are in the Upper Green River Valley and the Red Desert areas where water is a scarce commodity to begin with, and ranchers are having a big problem with this. Also, the gas companies are getting leases on federal land that might normally go to ranchers for grazing permits.

In the Upper Green River Valley, the gas fields are situated between two mountain ranges with wilderness areas and happen to be in a very important corridor for wildlife (elk, deer, antelope) migration. There's currently big concern that there is so much gas development that haze from well burn-off (if that's the right term?) and development in general will affect Grand Teton and Yellowstone Nat. Parks.

[leftupnorth]

16. Wow

They are flaring gas at the well head? That's odd, it must be "sour" gas - a lot of Hydrogen Sulfide Gas - very hazardous at high concentrations if not flared off. They may also be flaring it off because they have no way to get it to market, like a HUGE pipeline to the west coast. In either case, H2S gas can be treated safely at fairly high concentrations, and gas wells can be capped if there is no way to move it/treat it at the present time. Very wierd.

I almost feel like donning the tinfoil hat......

[tex-wyo-dem]

21. I might be wrong about flaring off at the well...

but I thought I saw that somewhere...I'll see if I can find the source.

Anyway, here's the article on the haze being created by gas activity in the area. It will affect Grand Teton and Yellowstone as well as the surrounding communities.

http://www.jacksonholestartrib.com/articles/2005/08/11/news/wyoming/f1f75b0451ff9b8d8725705a0000c7ca.txt

[liberal N proud]

4. Catastrophe 2 for 2005

Millions of people living in Northern states dye from hypothermia.
Cause. Cost of heating homes is so high, people can not afford to turn on the heat.

[bee]

9. im worried about that myself

last year (in nh) it cost me $280.00 a mo. to heat my 2 story apt. If prices double (which ive heard is possible) or if we run out of gas... we will freeze. I cant afford $600 / mo for heat. Thats half my rent. Im very worried.

[Lochloosa]

15. Move to Florida

I dare you...

[bee]

19. eek. Florida is beautiful... but it scares me.

Must take nerves of steel to live down there. Me, Im too big of a pussy. :scared:

;)

[Delphinus]

18. Another situation in

which the body count will be hidden.

[Demeter]

8. Don't Believe Everything The Energy Maggots Tell You

and nothing that comes from a BushCo consiglieri

[benburch]

11. This goes beyond price.

It means there will actually be gas systems shutting down this winter.

You cannot deliver gas that is not being produced.

[hadrons]

12. trying heating a McMansion at those prices ....

[sadiesworld]

14. Combined with the increase in minimum payments on

credit cards, this will be devastating.

"Pop" goes the RE bubble.

[MadHound]

20. Real estate bubble is already bursting,

And has been for awhile. I was listening to an economist on NPR this morning going through the Federal Reserves Beige Book reports. Essentially, what this man was saying is that out of the twelve districts that the Beige Book covers, ten of these districts numbers show that the RE market is going down, hard.

And right now, the only thing that is really propping up this economy is the RE market. No more. Put your seats in an upright and secure position, and fasten your seatbelts, this economy is coming in for a very rough landing. Hopefully one that we can walk away from.