HOG ON ICE: Putting Things In Perspective

HOG ON ICE: Putting Things In Perspective: "Putting Things In Perspective



Steve's hurricane could cause even more trouble...



When thinking about Hurricane Katrina, you might want to consider how she's going to affect your life. It doesn’t matter if you live on the Gulf Coast or not--Katrina just may affect you personally. In fact, no matter where you live in the US, this hurricane is packing enough punch to be felt from sea to shining sea, but I can't find anyone in the MSM talking about it.



Let me explain...



Most people don't think about the real damage being done by these hurricanes in the Gulf. The Gulf of Mexico is responsible for almost 1/4 of the nation's domestic oil and gas production—this doesn’t count the imported oil and gas that is offloaded in the Gulf—but I’ll get to that in a minute. When these hurricanes blow through, oil companies have to evacuate their rigs—which means shutting down production. Like sleep, you can never make up for lost production. There are production losses planned into the production schedule, but with a year like this one, we're falling behind—and it’s one of the reasons we’re feeling it at the pumps. Then you have the rigs themselves. Let’s take Thunderhorse for example. Thunderhorse is the world’s largest offshore platform. She’s 75% owned by BP and 25% by Exxon—BP is the operator. The rig is designed to take hurricanes and other weather events and remain operationally viable. However, when Hurricane Dennis came through, something went wrong and she started listing about 20 to 30 degrees. Fast work by BP crews and the US Coastguard prevented the loss of a $5 billion rig. None of these rigs out there are hurricane proof.



But the real problem is Port Fourchon.



Most people have never heard of Port Fourchon, but it is the nation's premiere oil and gas support services facility--and right now it lies within 12 miles of Hurricane Katrina's CAT-3 or CAT-4 bullseye. Over 600 platforms and 75% of the Gulf’s deepwater projects lie within a 40-mile radius of Port Fourchon. Unfortunately, Port Fourchon is a Louisiana island. An island that is connected to the mainland by a single two lane bridge...an old, single two lane bridge. This bridge is the only means of getting cargo and supplies to the Port. More than 1,000 cargo trucks go across this bridge each day, delivering materials to the Port for Outer Continental Shelf (OCS) drilling rigs. If there’s no bridge, there’re no drilling parts and supplies.



Do you see where this is going? When people say our infrastructure is vulnerable, they are not kidding—and not all of it is about terrorism.



The Port is crucial to our national security—for a number of other reasons. While the Persian Gulf provides around 23% of the U.S. oil supply, Port Fourchon supports the offloading of over 18% of all domestic oil and gas and 13% of all oil imports. Port Fourchon is the site of the enormous booster pumps that carry crude oil from the Louisiana Offshore Oil Port (LOOP) to underground salt dome storage areas in Galliano. The LOOP is the first and only offshore oil terminal operating in the United States. It's located less than 20 miles south of Port Fourchon in the Gulf of Mexico and allows the off-loading of oil from supertankers into special pipelines that connect directly to more than 30% of the nation’s refining capacity. The LOOP takes in about one million barrels of foreign oil and 300,000 barrels of domestic crude from Gulf of Mexico OCS each day. Loose that capacity and you've got big trouble.



Put another way, there is no other dot on the map that is more important to the nation’s energy supply, yet it’s connected to the mainland by an obsolete bridge and highway and it has a possible CAT-4 hurricane bearing down on it. It’s not a good situation and Port Fourchon authorities have been warning government officials about it for years.



I’m not being doom and gloom; I’m just saying that we don’t often think about how much these damn hurricanes can and might affect our daily lives.



Just something else to think about when you read about a hurricane in the Gulf of Mexico…"