HURRICANE IMPACTS TO U.S. ENERGY PRODUCTION AND TRANSPORTATION IN LA

1. HURRICANE IMPACTS TO U.S. ENERGY PRODUCTION AND TRANSPORTATION IN LA Karl Morgan March 2006

2. LA Oil and Gas Statistics • Coastal and offshore LA produce 27% of US oil and gas • La -190,000 bpd and OCS -1,500,000 bpd oil • La -1.2 mcf and OCS -3.65 tcf natural gas) • 40% of US oil and gas move through LA coastal pipelines • Home of La Offshore Oil Port (LOOP) which transports 10% of US imported oil • Existing LNG facility in Lake Charles with several more planned near and off shore

3. LA STATE OFFSHORE WATERS

4. EXTENT OF TIDAL INFLUENCELESS THAN 4 FEET IN ELEVATION

5. NEW ORLEANS HOUMA

6. LAKE CHARLES

7. GULF OF MEXICO OIL AND GAS PRODUCING AREA

8. OIL AND GAS INFRASTRUCTURE

9. Platforms and Wells • In OCS waters there are over 2800 platforms, of which over 800 are manned • In State offshore waters there are over 2700 platforms. Many more in inshore bays and lakes • In coastal LA there are over 12,000 producing wells not including OCS

11. LOOP OIL AND GAS INFRASTRUCTURE

12. OIL AND GAS INFRASTRUCTURE

13. PIPELINES • In OCS waters there are almost 14,000 pipeline segments and total of 37,000 miles of pipeline • In Coastal Louisiana there are almost 23,000 pipelines and total of over 26,500 miles of pipeline • Total of more than 63,500 miles of pipeline

15. PORT FOURCHON

20. HURRICANE KATRINAAugust 29, 2005

21. In OCS waters, Katrina destroyed 46 platforms

22. In the OCS, Katrina destroyed 46 platforms and damaged 20 more

23. In the OCS Katrina destroyed 46 platforms and damaged 20 more as well as damaging 100 pipelines

24. SHELL MARS TENSION LEG PLATFORM Photo from LSU Center for Energy Studies Source Shell

25. SHELL MARS POST STORM Photo from LSU Center for Energy Studies Source Shell

26. VENICE LAND BASE

27. Other effects of Katrina in OCS Waters • Evacuated 482 of 819 manned platforms • Shut-in 90% of GOM oil production • Shut-in 78% of GOM gas production • Destroyed 4 drilling rigs, damaged 9 other drilling rigs

28. HURRICANE RITASeptember 24, 2005

29. In OCS waters, Rita destroyed 69 platforms

30. In OCS waters, Rita destroyed 69 platforms and damaged 32 more

31. In OCS waters, Rita destroyed 69 platforms and damaged 32 more as well as damaging an additional 83 pipelines

32. DESTROYED PLATFORM Photo from LSU Center for Energy Studies Source MMS

33. Destroyed Platforms and Pipelines Photo from MMS

34. Destroyed Platforms and Pipelines Photo from MMS

35. Damaged Platforms and Pipelines Photo from MMS

36. Inshore, the two hurricanes shut in 14 major gas plants and 8 refineries, causing major damage to 3 refineries. It shut in over 1400 producing wells and numerous pipelines and smaller tank batteries and production facilities.

37. Henry Hub Gas Plant Photo from LSU Center for Energy Studies Source LIOGA

38. Other effects of Rita in OCS Waters • 100% of OCS oil production was shut-in • 79% of OCS gas production was shut-in • 683 platforms were evacuated • Destroyed 1 drilling rig and damaged 10 others

39. As of December 29, 2005 • OCS Production not yet restored • 27% of Oil Production • 19% of Gas Production • In state Production not yet restored • 29% of Oil production • 16% of the Gas production

40. Where are we today • OCS Production not yet restored • 24% of Oil production • 15% of Gas production • 42 pipelines larger than 10” in diameter still out of service

41. Lessons and Messages • The OCS production is a major supplier of US energy and is dependant on inshore facilities • The coastal wetlands must be restored to protect this infrastructure

42. Questions? 1-800-267-4019 1-225-342-6470 www.dnr.louisiana.gov Karl.Morgan@la.gov