Make us your home page
Instagram

Today’s top headlines delivered to you daily.

(View our Privacy Policy)

Gulf oil rigs withstand Gustav's Category 3 attack

Hurricane Gustav may not have shaken up oil markets in the end, but it taught traders a lesson for next time: The oil infrastructure of rigs and platforms dotting the Gulf Coast can handle a Category 3 storm.

James Cordier, an oil futures trader in Tampa, said minimal damage from Gustav and decreasing global demand gave investors the confidence they lacked in the wake of the hurricanes of 2005.

Before Gustav, "every time a storm came out, the energy market cringed," Cordier said. "People are really breathing a sigh of relief that we withstood a Category 3 without damage."

Crude oil futures closed at $109.71 a barrel Tuesday on the New York Mercantile Exchange, falling $5.75. Gas prices stayed steady at $3.684 average for regular unleaded nationwide and $3.63 in the Tampa Bay area, according to AAA.

As of late Tuesday, all gulf rigs and about 12 percent of refineries remained shut down as workers surveyed the damage. Risk Management Solutions Inc. estimated oil-drilling damage from the storm could total $1-billion to $3-billion.

David Mica, director of the Florida Petroleum Council, said the industry remains optimistic, but it's too early to tell if or how the shutdowns will have a delayed effect on gasoline prices in Florida.

"There is now a burp in the system, and how big and how long that burp is we'll have to wait and see," he said.

Unlike hurricanes Rita and Katrina, which hit the Gulf Coast as Category 3 storms, respectively, in 2005, Gustav entered the gulf as a Category 3 and was barely a Category 2 when it made landfall Monday west of New Orleans.

Mica said rigs and platforms have been reinforced with structural moorings, better bolts and stronger steel since the 2005 storms, when flooding also caused severe damage to other infrastructure such as refineries and pipelines.

Gulf oil rigs withstand Gustav's Category 3 attack 09/02/08 [Last modified: Wednesday, September 3, 2008 4:51pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Bucs' Vernon Hargreaves: 'I'm not making any plays'

    Bucs

    TAMPA — Eli Manning gathered his receivers together on the sideline during the Giants' Week 4 game against the Bucs and told them he planned to target the weakest link of the secondary all afternoon.

    Patriots receiver Chris Hogan gets position in front of Bucs cornerback Vernon Hargreaves for a 5-yard touchdown pass in New England’s win on Oct. 5.
  2. Suspect in Maryland office park shooting is apprehended

    Nation

    EDGEWOOD, Md. — A man with a lengthy criminal past who was fired from a job earlier this year for punching a colleague showed up for work at a countertop company on Wednesday and shot five of his co-workers has been arrested, authorities said. Three of them were killed and two critically wounded.

    Harford County, Md., Sheriff Jeffrey Gahler shows a picture of Radee Labeeb Prince, the suspect in the workplace shootings.
  3. Lightning's J.T. Brown to stop anthem protest, focus on community involvement

    Lightning Strikes

    COLUMBUS, Ohio — Lightning wing J.T. Brown will no longer raise his first as a protest during the national anthem before games.

    J.T. Brown says he will work more with the Tampa police and groups that serve at-risk young people.
  4. The two Ricks tangle at what may be final debate

    Elections

    ST. PETERSBURG — In what was likely the last mayoral forum before the Nov. 7 election, Mayor Rick Kriseman and former Mayor Rick Baker started out small, discussing neighborhood issues like recycling and neighborhood funding. They ended tangling over familiar subjects: the future of the Tampa Bay Rays, sewage …

    Ex-Mayor Rick Baker, left, and Mayor Rick Kriseman, right, debated familiar topics. The Times’ Adam Smith moderated.
  5. Tampa Chamber of Commerce announces small business winners

    Business

    TAMPA — The Greater Tampa Chamber of Commerce selected the winners of the 2017 Small Business of the Year Awards at a ceremony Wednesday night at the David A. Straz, Jr. Center for the Performing Arts. More than 600 attendees celebrated the accomplishments of Tampa Bay's small business community.

    Vincent Cassidy, president and CEO of Majesty Title Services, was named Outstanding Small Business Leader of the Year by the Greater Tampa Chamber of Commerce.