* Storm left coastal roads, docks, ports in poor condition
* Lack of access impeding assessments, repairs to oil
facilities
* Oil companies shifting resupply centers after major losses
(Updates with latest oil output, destruction to offshore supply
base)
By Devika Krishna Kumar and Liz Hampton
PORT FOUCHON, Louisiana, Sept 1 (Reuters) - Energy companies
on Wednesday were scrambling to open new supply operations and
get workers to offshore production platforms after the
industry's key logistics centers took direct hits from Hurricane
Ida, executives said.
Damaged roads, power and transport facilities slowed efforts
to complete aerial surveys of offshore facilities three days
after the storm tore through the U.S. Gulf of Mexico. The
surveys are first step to returning crews for more extensive
safety and equipment checks.
Hurricane Ida's 150-mile-per-hour (240 km per hour) winds
pummeled Port Fourchon, Galliano and Houma, Louisiana, the major
resupply center and home of offshore transport, warehousing and
nexus for offshore oil and gas pipelines.
“The area is completely devastated,” said Tony Odak, chief
operating officer of Stone Oil Distributor, a top supplier of
fuel to the offshore industry. “You have infrastructure that
needs to be rebuilt.”
RESUPPLY OPERATIONS HIT
Royal Dutch Shell said a heliport in Houma,
Louisiana, suffered significant damage and it was working to
establish a new facility before returning workers to production
sites.
Some 1.4 million barrels of offshore oil and 1.88 billion
cubic feet of natural gas production remained offline, the
offshore regulator said. The shut-ins amount to 80% of the
offshore Gulf of Mexico's daily production.
Stone Oil has yet to be able to assess the damage to its
Port Fourchon facilities due to debris filled and water-damaged
roads. It will shift more of its operations to a facility in
Cameron, Louisiana, Odak said, but is committed to rebuilding in
Port Fourchon.
Oil producers on Wednesday had returned staff to only 39 of
288 platforms operated by BP Plc, BHP Group,
Chevron Corp and Shell. Offshore facilities in the
region contribute 16% of U.S. production.
The main road to Port Fourchon was not passable on Tuesday
and officials limited access to emergency vehicles. Several
companies are looking to shift offshore support operations
because of infrastructure damage.
Mfon Usoro, a senior energy analyst at Wood Mackenzie,
estimated it would take two or more weeks to fully restore
operations offshore because of the supply center losses. Port
Fourchon "unfortunately took a direct hit on Sunday," she said.
HIGH ECONOMIC LOSSES
Ida's economic cost could hit $70 billion to $80 billion,
estimated AccuWeather, with much of the losses stemming from the
oil industry and supply chain delays.
Loss of power and mobile phone service stalled companies
from reaching workers needed to conduct damage assessments at
pipelines and refineries. Nearly 1 million Louisiana homes and
businesses remained without power on Wednesday.
Some 1.7 million barrels of daily oil processing is offline
at seven Louisiana refineries, the U.S. Department of Energy
said. Consultancy Rystad Energy forecast losses will continue
for seven to 14 days, depending on flood damage.
Gulf Coast refiners Phillips 66, PBF Energy Inc
and Shell halted oil processing at plants in the storm's
path, cutting about 9% of U.S. refining capacity.
Power outages in some areas may persist for up to six weeks.
Full recovery of processing capacity will depend on how quickly
outside power is restored, with some plants taking four weeks to
recover.
Crude oil prices were mostly flat at mid-day
after falling more than $1 per barrel earlier on a buildup in
U.S. gasoline inventories and expectations that storm-cutbacks
at refineries would reduce demand.
PORTS REMAIN CLOSED
Due to port delays, more than two dozen oil vessels moored
off Louisiana were waiting to load or unload, with the largest
bottlenecks near Baton Rouge and Lake Charles.
Energy pipelines that supply export ports and processing
plants were knocked out. Kinder Morgan said it had not
been able to access many of its terminals in Louisiana due to
flooding and road closures. Poseidon Oil Pipeline, which brings
oil from offshore platforms to Houma, said on Wednesday it could
not answer questions about its operations.
(Reporting by Marianna Parraga, Erwin Seba, Sabrina Valle and
Liz Hampton; Writing by Gary McWilliams; Editing by David
Gregorio and Lisa Shumaker)
