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

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 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

LA STATE OFFSHORE WATERS

EXTENT OF TIDAL INFLUENCE LESS THAN 4 FEET IN ELEVATION

NEW ORLEANS HOUMA

LAKE CHARLES

GULF OF MEXICO OIL AND GAS PRODUCING AREA

OIL AND GAS INFRASTRUCTURE

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

LOOP OIL AND GAS INFRASTRUCTURE

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

PORT FOURCHON

HURRICANE KATRINA August 29, 2005

In OCS waters, Katrina destroyed 46 platforms

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

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

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

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

VENICE LAND BASE

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

HURRICANE RITA September 24, 2005

In OCS waters, Rita destroyed 69 platforms

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

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

Photo from LSU Center for Energy Studies Source MMS DESTROYED PLATFORM

Destroyed Platforms and Pipelines Photo from MMS

Destroyed Platforms and Pipelines Photo from MMS

Damaged Platforms and Pipelines

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.

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

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

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

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

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

Questions?