Louise "Toot" Marie Chiasson Fremin
October 7, 2008
Marie "Grum" Hartman Hebert
October 9, 2008
The predictions were dire concerning the possible damage, but, fortunately, the effect on oil- and gas- related industries in the Tri-parishes from hurricanes Gustav and Ike was minimal.
Nevertheless, forecasts of skyrocketing gasoline prices resulting from the high winds threw a scare into consumers all over the country.
About the hurricanes’ damage to oil- and gas-related industries, Mitch McDonald with the Terrebonne Parish permit office said, “Some has occurred. It’s not major, but some (structures were damaged.)”
McDonald coordinates flood prevention planning for the parish. He is in the process of tracking damage to structures, gathering data for the Federal Emergency Management Agency. McDonald said South Central Planning and Development District is also inventorying damage done to residential and commercial structures that were flooded.
While the damage was not significant considering what could have happened if Gustav had maintained its strength, a few buildings associated with oil and gas production in Terrebonne Parish did receive some floodwaters, McDonald said.
“Various buildings did flood,” he said. “Five or seven buildings at the airbase had flooding. In Dulac, some oilfield facilities had flooding. But I’m not aware of any major, significant oil and gas facilities flooding.”
“We’re trying to be precise, but no one is reporting any major damage,” he added.
McDonald said, “Usually, businesses on the Intracoastal Waterway are constructed in a way to minimize flood damage.”
One oilfield-related business which received some flooding from Hurricane Ike was Performance Energy Services off Industrial Boulevard in Houma. The company, which employs more than 700 people, performs construction and renovation work on oilrig platforms out in the Gulf of Mexico, including sandblasting and painting.
Clay Nunnally with Performance Energy said his facility received more than $5 million in damage from Ike’s flooding, especially in the storage areas.
Nunnally said Performance Energy, which has been in existence since 2000, will definitely move from the current location on North American Court, but he is not certain where. He said he is looking at all options.
Following Hurricane Rita, the company added yards in New Iberia and Ingleside, Texas.
Another site at Industrial Boulevard that received floodwater from Ike was Weatherford Gemoco, which makes parts related to oilfield production.
Weatherford is in the process of moving its Houma facility to northern Terrebonne Parish. The move was spurred partly by the fact the facility on Industrial Boulevard was heavily flooded by Hurricane Rita in 2005.
Weatherford had strongly considered moving its Houma operation to Texas, but efforts to gain the company tax credits spearheaded by the Terrebonne Economic Development Authority were successful.
The facility under construction in north Terrebonne on Louisiana Highway 311 received no damage from Gustav’s winds.
“But we got a foot of water at the Industrial Boulevard location,” said Weatherford spokesman Joseph Boudreaux. He said Weatherford received eight inches more water from Ike than from Rita.
“Mechanical and electrical tools, motors and other equipment close to the ground got submerged,” he said. “Some telephones shorted.”
Tony Boudreaux, president of the South Central Industrial Association, said hurricanes always disrupt oil and gas production. The storms make it harder to “get into the groove and be efficient in the market, especially the industry’s employees.
“When you have something like this, your employees are impacted,” he said. “It can be difficult to get them back. They can have flooding to their homes, family problems. That impacts the oil industry. It affects the efficiency of production.”
Not to mention the fact that production is shut down when hurricanes approach, he said.
For the Gulf of Mexico, the federal Minerals Management Service tallied damage to oil and gas production facilities from Hurricane Ike.
The agency reported 1,450 oil and gas production platforms in the Gulf were exposed to hurricane force winds of greater than 74 mph.
Of those, 52 oil and gas production platforms and three jackup oilrigs were destroyed by Hurricane Ike. Tewnty-nine platforms received extensive damage and 33 received moderate damage. Major impairment would include underwater structural damage and damage to pipelines transporting the oil and gas to shore.
Minor impairment includes damage to the topsides and to the flex joints where pipelines connect to the platform.
Six gas transmission lines were damaged.
Full production will return again soon. Production from the Gulf of Mexico constitutes 25 percent of all oil produced domestically and 15 percent of the natural gas. The Gulf produces daily 1.3 million barrels of oil and seven billion cubic feet of gas.
