Preparing for the 2007 Hurricane Season

Oil and gas prices are always making headlines. This was especially true after the devastation caused by hurricanes Katrina and Rita in 2005. Oil refineries were damaged beyond belief. The entire supply chain came to a grinding halt. It was a difficult time to say the least. In preparation for Katrina’s landfall, my company had to lay down a drilling rig to secure the prospect we were drilling. When Rita began approaching on Katrina’s heels, we had to lay the rig down again. Although I wasn’t thrilled about the inconvenience of it all, those safety measures saved the well. The Gulf Coast is one of the most prolific regions of the United States, and it comes with its own set of blessings and challenges. As an industry, I believe we learned a lot from the 2005 hurricane season, and it looks like we may be putting that knowledge into practice very soon.

The projections for the 2007 hurricane season indicate that we may be in for a very active year. The Tropical Meteorology Project at Colorado State University is predicting 9 hurricanes & 17 named storms. According to the study, the probability that one or more of these storms will hit the coast is well above average. As you might expect, oil companies are keeping a close eye on weather conditions. If a tropical storm or hurricane is likely to make landfall, they will begin securing production facilities and shutting in wells. These steps protect both our natural resources and the environment by preventing unnecessary leaks due to storm damage. Consumers will likely experience a spike in oil prices as both production and refining capacity fall. I’ll keep you posted on developments as they come from the field.