The oil and gas industry monitors the weather year round, especially during hurricane season. With news of a tropical disturbance brewing in the Gulf of Mexico, Louisiana is keeping a close eye on it for the sake of employee safety and oil production.
Don Briggs, President of the Louisiana Oil and Gas Association says with 17% of U.S. crude oil coming in from the gulf, monitoring the weather is an important aspect of the industry. “Many companies especially the large ones have their own meteorologists…..”
Briggs says some companies are discussing and have evacuated non-essential personnel. That’s the first step when a tropical system is threatening the gulf. As the storm develops and draws closer, all personnel are evacuated and production stops. Briggs says protocol differs slightly between companies, but shutting a rig down is no easy task. “It can happen very quickly but it takes hours to make it happen…the primary goal is always the safety of all our people out there.”
If a storm or hurricane hits the gulf and production stops, how does that affect gas prices? Briggs says, “You’ll see prices impacted a little by that but that does have a very, very temporary impact.”
Briggs says, as of right now, production in the gulf continues. Of course, that could change if tropical activity becomes more severe.