This Morning in Metals: Hurricane Laura hits Gulf crude oil production

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crude oil

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This morning in metals news: Hurricane Laura had the largest effect on Gulf of Mexico crude oil production of any hurricane since 2008, according to the Energy Information Administration (EIA); U.S. imports of standard pipe and tin plate from Thailand and China, respectively, surged from May-July; and tech companies could call the site of the former Etna steel mill their new home.

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Hurricane Laura leads to 14.4M-barrel reduction in Gulf of Mexico oil output

Hurricane Laura had the largest impact on Gulf of Mexico oil production of any storm since 2008, the Energy Information Administration (EIA) reported.

The EIA reported, citing estimates from the U.S. Bureau of Safety and Environmental Enforcement (BSEE), the hurricane reduced crude oil production by 14.4 million barrels over a period of 15 days.

At its peak, Hurricane Laura forced the evacuation of all 16 dynamically positioned drilling rigs, the EIA reported. Meanwhile, the hurricane forced evacuation of 11 of the 12 nondynamically positioned drilling rigs and nearly half of the 643 offshore production platforms operating in the Federal Offshore Gulf of Mexico.

The hurricane battered Louisiana in late August. The Associated Press reported Sept. 24 that New Orleans-based utility Energy Corp. said damage stemming from the hurricane had reached a cost of $1.4 billion.

U.S. standard pipe, tin plate imports surge

U.S. imports of standard pipe from Thailand and tin plate from China surged over the summer, according to Steel Import Monitoring and Analysis (SIMA) system trends data.

Imports of standard pipe from China during the May-July period jumped 378% from the August 2019-April 2020 period. Imports from May through July totaled 6,827 metric tons.

Meanwhile, imports of tin plate jumped 365% during the May-July period, up to 7,564 metric tons.

Furthermore, total imports of blooms, billets and slabs surged 309% in the aforementioned period. U.S. imports of blooms, billets and slabs totaled 35,772 metric tons during the May-July 2020 period.

Etna steel mill site could be new home for tech firms

The site of the Etna steel mill in Pennsylvania’s Allegheny County could get new tenants.

The Pittsburgh Post-Gazette reported the mill could soon be home to tech companies in the region.

The AM Group purchased an industrial building at the site. The New York-based real estate group plans to convert the building into “tech-flex space.”

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