API: HURRICANES AND THE PIPELINE INDUSTRY'S PREPARATION

By: American Petroleum Institute (API)

America's Oil And Natural Gas Industry Is Committed To Protecting The Environment And To Continuously Improving Its Hurricane Preparation And Response Plans. After Any Hurricane Or Tropical Storm, The Goal Is To Return To Full Operations As Quickly And As Safely As Possible. For The 2017 Hurricane Season, The Industry Continues To Build Upon Critical Lessons Learned From 2008'S Major Hurricanes, Gustav And Ike, As Well As Other Powerful Storms, Such As 2005'S Katrina And Rita Or 2012’S Superstorm Sandy.

Refineries And Pipelines

Despite sustaining unprecedented damage and supply outages during the 2005 and 2008 hurricanes, the industry quickly and safely brought refining and pipeline operations back online, delivering to consumers near-record levels of gasoline and record levels of distillate (diesel and heating oil) in 2008. The oil and oil-product pipelines operating on or near the Gulf of Mexico continue to review their assets and operations to minimize the potential impacts of storms and shorten the time it takes to recover. While there have been some shortages caused by hurricanes, supply disruptions have been temporary despite extensive damage to supporting infrastructure, such as electric power generation and distribution, production shut-ins and refinery shutdowns. Pipelines need a steady supply of crude oil or refined products to keep product flowing to its intended destinations.

To Prepare For Future Severe Storms, Refiners And Pipeline Companies Have:

  • Worked with utilities to clarify priorities for electric power restoration critical to restarting operations and to help minimize significant disruptions to fuel distribution and delivery.
  • Secured backup power generation equipment and worked with federal, state and local governments to ensure that pipelines and refineries are considered "critical" infrastructure for back-up power purposes.
  • Established redundant communications systems to support continuity of operations and locate employees.
  • Worked with vendors to pre-position food, water and transportation, and updated emergency plans to secure other emergency supplies and services.
  • Provided additional training for employees who have participated in various exercises and drills.
  • Reexamined and improved emergency response and business continuity plans.
  • Strengthened onshore buildings and elevated equipment where appropriate to minimize potential flood damage.
  • Worked with the states and local emergency management officials to provide documentation and credentials for employees who need access to disaster sites where access is restricted during an emergency.
  • Participated in industry conferences to share best practices and improvement opportunities.

Refineries And Hurricanes (Steps Industry Takes To Prepare For And Return After A Storm)

  • Refiners, in the hours before a large storm makes landfall, will usually evacuate all non-essential personnel and begin shutting down or reducing operations.
  • Operations in areas not forecast to take a direct hit from the storm often are shut down or curtailed as a precaution because storms can change direction with little notice.
  • Once safe, teams come in to assess damage. If damage or flooding has occurred, it must be repaired and dealt with before the refinery can be brought back on-line.
  • Other factors that can cause delays in restarting refineries include the availability of crude oil, electricity to run the plant and water used for cooling the process units.
  • Refineries are complex. It takes more than a flip of a switch to get a refinery back up and running. Once a decision has been made that it is safe to restart, it can take several days before the facility is back to full operating levels. This is because the process units and associated equipment must be returned to operation in a staged manner to ensure a safe and successful startup.
  • If facilities are undamaged or necessary repairs have been made, and ancillary facilities - like pipelines that carry the oil and natural gas - are undamaged and ready to accept shipments, operators will begin restarting production.

Pipelines And Hurricanes (Steps Industry Takes To Prepare For And Return After A Storm)

  • Pipeline operations can be impacted by storms, primarily through power outages, but also by direct damage.
  • Offshore pipelines damaged require the hiring of divers, repairs and safety inspections before supplies can flow. Damaged onshore pipelines must be assessed, repaired and inspected before resuming operations.
  • Without power, crude oil and petroleum products cannot be moved through pipelines. Operators routinely hold or lease back-up generators but need time to get them onsite.
  • If there is no product put into pipelines because Gulf Coast/Gulf of Mexico crude or natural gas production has been curtailed, or because of refinery shutdowns, the crude and products already in the pipelines cannot be pushed out the other end.
  • Wind damage to above ground tanks at storage terminals can also impact supplies into the pipeline.

Background

2008: The 2008 hurricane season was very active, with 16 named storms, of which eight became hurricanes and five of those were major hurricanes. For the U.S. oil and natural gas industry, the two most serious storms of 2008 were Hurricane Ike, which made landfall in mid-September near Baytown, Texas, and Hurricane Gustav, which made landfall on September 1 in Louisiana.

Hurricane Gustav, a strong Category 2 storm, kept off-line oil and natural gas delivery systems and production platforms that had not yet been fully restored from a smaller storm two weeks earlier, and brought significant flooding as far north as Baton Rouge.  Hurricane Ike, another strong Category 2 hurricane, caused significant portions of the production, processing, and pipeline infrastructure along the Gulf Coast in East Texas and Louisiana to shut down. Ike caused significant destruction to electric transmission and distribution lines, and these damages delayed the restart of major processing plants, pipelines, and refineries. As many as 3.7 million customers were without electric power following the storm, with about 2.5 million in Texas alone.

At the peak of disruptions, more than 20 percent of total U.S. refinery capacity was idled. The Minerals Management Service - now called Bureau of Safety and Environmental Enforcement (BSEE)estimated that 2,127 of the 3,800 total oil and natural gas production platforms in the Gulf of Mexico were exposed to hurricane conditions, with winds greater than 74 miles per hour, from Hurricanes Gustav and Ike.  A total of 60 platforms were destroyed as a result of Hurricanes Gustav and Ike. Some platforms which had been previously reported as having extensive damage were reassessed and determined to be destroyed. The destroyed platforms produced 13,657 barrels of oil and 96.5 million cubic feet of natural gas daily or 1.05 percent of the oil and 1.3 percent of the natural gas produced daily in the Gulf of Mexico.

2005: The 2005 hurricane season was the most active in recorded history, shattering previous records.  According to the Department of Energy, refineries in the path of hurricanes Katrina and Rita accounting for about 29 percent of U.S. refining capacity were shut down at the peak of disruptions. Offshore, the Minerals Management Service (MMS) estimated 22,000 of the 33,000 miles of pipelines and 3,050 of the 4,000 platforms in the Gulf were in the direct paths of the two Category 5 storms. Together the storms destroyed 115 platforms and damaged 52 others.

Even so, there was no loss of life among industry workers and contractors. An MMS report found "no accounts of spills from facilities on the federal Outer Continental Shelf that reached the shoreline; oiled birds or mammals; or involved any discoveries of oil to be collected or cleaned up".


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