MMS ENVIRONMENTAL STUDIES PROGRAM:  ONGOING STUDIES

MMS OCS Region:

Gulf of Mexico

Title:

Post Hurricane Assessment of OCS-Related Infrastructure and Communities in the Gulf of Mexico Region (GM-92-42-124)

Planning Area:

Gulfwide

Total Cost:  $224,837

Period of Performance:  FY 2006 - 2009

Conducting Organization:

Coastal Marine Institute, Louisiana State University

MMS Contact:

Kristen L. Strellec

Description:

Background:  The backbone of offshore oil and gas activities is the infrastructure in coastal areas supporting a wide range of activities that occur offshore in the Gulf of Mexico (GOM).  An earlier study sponsored by MMS (OCS-Related Infrastructure in the Gulf of Mexico Fact Book, MMS 2004-027; hereafter referred to as "Infrastructure Fact Book") surveyed a wide range of existing onshore infrastructure supporting offshore activities, including: platform fabrication yards; shipbuilding & shipyards; ports; support & transport facilities; waste management facilities; pipelines; pipecoating yards; natural gas processing plants; natural gas storage facilities; refineries; and petrochemical facilities.  A standardized set of topics was covered for each facility type that included an introduction, a description of the infrastructure and a typical facility, industry characteristics, a survey of the important regulations governing facility operations, and a survey of industry trends and outlooks.

A number of recent changes have occurred in the industry necessitating an update, including: a considerable increase in energy prices; significant financing challenges and ownership shifts since the energy credit crunch created by the Enron crisis; increased interest in the GOM in both deepwater prospects and shallow water/deep drilling opportunities and incentives; and increased and exceptionally damaging tropical activity starting with Hurricane Ivan in 2004, and continuing with the tropical activity of 2005 that include Hurricanes Katrina and Rita.

The tropical activity of 2005 emphasized both the importance and unique interrelationship between offshore activities and onshore infrastructure.  Further, the storm highlighted the unique relationship between various different types of infrastructure supporting offshore activities.  For instance, failures associated with power delivery impacted pumping stations that would be unable to deliver crude from producing wells (or import terminals) to refineries which were relatively unaffected by the storms.  Failures in gas processing resulted in shut-in production in the GOM. Further, and most importantly, the tropical activity created significant destruction throughout the Gulf Coast energy corridor.  This raises questions about which types of infrastructure will be rehabilitated, which will be expanded, and which will be moved to other regions along the Gulf, or even out of region.  These changes, in turn, have important impacts on the economies and communities of the region.

Objectives:  The primary objective of this project will be to update the existing Infrastructure Fact Book in light of the recent changes in the industry and the region.  The goal will be a better understanding of the impacts that the 2005 tropical activity may have on future onshore infrastructure development trends and outlooks.  A second objective will be to reorganize and supplement some of the information to better support EIS development.  In addition to updating the underlying data, the original data documentation will be updated to ensure that the metadata associated with the project meets newer MMS data collection standards that have been developed since the original project concluded.  The project will also conduct a socioeconomic analysis of select communities with a high concentration of OCS-related infrastructure.  This analysis will take the existing GIS infrastructure information, as well as additions and supplements developed during this project, and identify communities of interest.  For a set of six to ten communities selected, detailed community profiles will be developed using Census data.

Methods:  The methods will include a detailed literature review and synthesis of existing information, including: government reports, trade journal articles, government data series, filings before various regulatory agencies, and trade association reports.

Products:  A final report publication, geo-referenced data, and annotated references.

Importance to MMS:  The information derived from all phases of this investigation can be used by both Federal and State decision-makers in evaluating the importance of onshore infrastructure in supporting offshore activities.  Activities associated with ongoing operations, expansions, and most importantly new investments, is a source of considerable economic activity.  The tropical activity of 2005 has the potential to considerably impact future GOM production activities.  The MMS needs current, up-to-date information about OCS-related infrastructure in the region, and an understanding of how current and future development has been impacted by these storms.  Updating the GIS and other data associated with this infrastructure can also assist in highlighting future challenges in upcoming tropical seasons.

Current Status:  The following activities have been completed: research on the impact the 2005 hurricanes had on all major infrastructure sectors; analysis of the impact of hurricanes on future infrastructure development needed to support various scenarios of offshore activity; continued development of forecast methodology of future infrastructure development; continued research on infrastructure trends and impacting issues; and a set of communities with a high concentration of OCS-related infrastructure has been identified for detailed analysis. An analysis of these areas is underway.  A draft of the report is being prepared and is expected to be submitted to MMS by the end of April for review.  Updating of the GIS data is ongoing.

Final Report Due:

January 2009

Publications:

None

Affiliated WWW Sites:

Coastal Marine Institute, Louisiana State University

Revised date:

August 2008

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