Source: Barrel Blog | John-Laurent Tronche, Managing editor | August 29, 2017
The Louisiana Offshore Oil Port and regional refining industry could be set to carry the load in the near future, collectively establishing itself as the most important chunk of US oil infrastructure while Texas remains hobbled by Hurricane Harvey.
In three updates so far, LOOP has said its facilities are operating normally, although many facilities in neighboring Texas are shut.
“At this time, there are no interruptions to vessel operations or deliveries from the Clovelly Hub due to Hurricane Harvey,” LOOP said Sunday.
Roughly 2.4 million b/d of refining capacity has been shut along the Texas coast, while another major refinery is operating at reduced rates. Some offshore oil and gas operators evacuated platforms and rigs, although offshore production was picking up a bit Sunday, while onshore operators were shutting in what may amount to hundreds of wells in the Eagle Ford Shale in South Texas. The USGC crude market has ground to a halt.
The four major ports in the Houston-Galveston area complex are closed to all inbound and outbound traffic: the Port of Houston, Port of Texas City, Port of Galveston and Port of Freeport.
LOOP typically ranks No. 3 behind Houston and Port Arthur for US crude imports and accounts for 10% of US imports and 16% of Gulf Coast imports, according to Platts Analytics and US Customs data. But with Texas ports closed, LOOP could be set to reclaim the title of No. 1 port for US crude imports, which it has not held since May 2016.
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