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. Pinellas receives two charter school applications

    Blogs

    Following a two-year dry spell, the Pinellas County school district has received two new applications to open charter schools in St. Petersburg.

    Windsor Preparatory Academy in St. Petersburg could be home to Pinellas Academy of Math and Science's St. Petersburg campus. The Pinellas County school district received a charter school application from that school's leadership this fall to open in 2018.
  2. Southern Heritage group draws fire for posting personal information of Confederate statue opponents

    Politics

    TAMPA — Curtiss Wilson is an 89-year-old Tampa resident who fought in the civil rights movement.

    A report by Save Southern Heritage Florida includes the "affiliation" of more than 100 people who spoke at the July 19 commission meeting in favor of removing  the Confederate monument from in front of the old county courthouse in Tampa. People on the list say the report was meant to intimidate and harrass opponents of the monument. Save Southern Heritage director Doug Guetzloe said the report is "opposition research" meant to to inform elected officials about who was speaking on the issue.
[Save Southern Heritage Florida]
  3. Gen. Votel interview: 'A bit of a stalemate' in Afghanistan, but a chance to optimize gains there

    Military

    In developing the plan for the war in Afghanistan that he announced Monday night, President Donald Trump consulted with advisers including his military leaders through their chain of command.

  4. Water Street Tampa unveils video showing downtown's transformation (w/video)

    Business

    TAMPA — Water Street Tampa, the sweeping, 50-plus acre redevelopment project in Tampa's urban core, has unveiled new images and video of what the downtown district will look like upon completion.

    Strategic Property Partners released a conceptual image of what the Tampa skyline will look like once its redevelopment of 50-plus acres of downtown will look like. [Photo courtesy of  of SPP]
  5. Bill Nelson shares Rick Scott's cautious stance on Confederate monuments

    Blogs

    On the issue of Confederate monuments, Sen. Bill Nelson is taking the cautious route of Gov. Rick Scott.