Energy & Entrepreneurs #19                                                                                 

Hurricanes and Energy

by Raymond J. Keating

The American Petroleum Institute shared some information about the impact Hurricanes Erin and Dean on oil and natural gas operations in the Gulf of Mexico.

API pointed out that U.S. petroleum companies began evacuating platforms and rigs in preparation on Wednesday, August 15.  All were back online on August 17, but then concerns about Hurricane Dean led to evacuations and shut downs.

As of August 21, a little more than 4 percent of platforms had been evacuated and 21% of total rigs in the Gulf.  This correlates to 3.38% of total Gulf of Mexico oil, or 0.84% of total U.S. oil.  As for natural gas, 1.82% of Gulf gas is shut-in, or 0.26% of U.S. gas.

It's also pointed out that the impact on national oil and gas supplies has been limited. 

That's good news.  At the same time, though, with the peak of hurricane season quickly approaching, we are reminded that U.S. energy policy should be geared toward removing governmental obstacles to energy exploration and development.  The more sources, the less damage likely done to consumers, businesses and the economy by a major weather event.

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Raymond J. Keating is chief economist for the Small Business & Entrepreneurship Council.