Summer Heat and Hurricanes Put Pressure on Oil and Gas Companies
When summer rolls around, many Americans head to the coasts to enjoy a vacation on the beach. Over the past several years, though, millions of vacations—and everyday lives—have been interrupted by intense heat waves and powerful storms.
Some experts believe this trend is the result of global climate changes. Whatever the cause, it’s a trend that has millions of people across the country and around the world worried about what life will be like in the years to come.
Moreover, individuals aren’t the only ones affected. Oil and gas companies along coastal areas have learned to prepare and brace their facilities for the worst. According to a recent Reuters article, authors Shariq Khan and Nicole Jao predict that “[a] double whammy of record heat and hurricanes should test U.S. refiners’ resilience in coming weeks, raising the risk of extremely volatile fuel prices in the middle of the peak travel season.”
The authors point out that “[t]he Atlantic hurricane season from June through November is an annual threat for U.S. refineries. Half of the country’s over 18-million-barrel-per-day refining capacity is located along the Gulf Coast, highly susceptible to tropical storms.”
Unfortunately, “[r]efiners this year may have to brace for more storms than usual. Government forecasters expect up to seven major hurricanes in coming months, double the annual average of three major Atlantic hurricanes with wind speeds over 111 miles per hour.”
When storms are forecast to hit oil production hotspots, refiners often cut back operations dramatically, even closing refineries and shutting down ship traffic to affected ports. Mandatory evacuation orders can also impact worker availability at plants.
According to the U.S. Energy Information Administration, “If a major storm hits the Gulf Coast’s refining system, it could remove as much as a million barrels a day of fuel supply and lead to extended outages or even permanent closures.” But hurricanes aren’t the only problem oil and gas companies have to deal with currently.
Khan and Jao note that “[i]n addition to hurricanes, refineries this year must contend with more problems related to scorching heat. The latest U.S. monthly temperature outlook foresees above average temperatures in large parts of the U.S. in July, typically the hottest month. Excessive temperatures have supersized effects on commodity supply chains, including oil and fuel.”
Not only is excessive heat dangerous for workers, “[t]riple-digit temperatures could lead to equipment malfunctions and reduction in refining capacity. Extreme heat last year led to a 500,000 bpd reduction in Gulf Coast refined products output.”
There is a silver lining, however. Khan and Jao point out that “[a] robust maintenance season earlier this year allowed U.S. refineries to undertake major upgrades and perform detailed upkeep which had been repeatedly postponed due to surging post-pandemic demand and supply disruptions.”
As oil and gas companies strategize and develop plans to tackle future heat waves and hurricanes, they will continue to need highly skilled workers to conduct critical maintenance activities that will help them weather the storm (pun totally intended).
Given the ongoing skills gap across all major industries, oil and gas companies will need to focus on hiring highly skilled workers and training current workers with the skills they need to succeed. So how do oil and gas companies improve their focus on technical skills? For new and current employees, the answer is technical training.
Oil and gas workers need both fundamental knowledge and hands-on technical skills with real industrial equipment they’ll encounter on the job. Be sure to check out Bayport Technical’s wide variety of hands-on oil and gas training systems to take your oil and gas training to the next level.
- Published in News