they could damage gas and oil production

The 25 storms already identified for this year’s hurricane season could bring more disruptions to the U.S. oil and gas industry than ever before, the Energy Information Administration (EIA) said Wednesday in an in-depth analysis of the weather’s effects on supply and demand.

“The potential for a stronger hurricane season suggests a greater risk of weather-related production disruptions in the U.S. oil and natural gas industry,” the EIA warned, as forecasters predict a hurricane season Atlantic Oceans “particularly intense” this year.

Last year, the Atlantic hurricane season saw one of 20 named storms hit land in the United States – none caused major disruptions or damage to oil and gas industry installations.

This year, things may be different during the season, which begins June 1 and runs through the end of November, with hurricanes most commonly hitting the Southeast and Gulf Coast of the United States.

EIA Warns Forecasts of Heavier Hurricanes This Year Could See Oil and Gas Markets impacted by the potential disruption of crude oil production and refinery operations, with offshore installations of particular concern in the Gulf of Mexico. The agency also warns of the risk of flooding and disruptions at offshore floating production facilities and refining operations. Finally, the EIA warned of potential disruption to LNG exports, which include 13 billion cubic feet per day of capacity from the Gulf Coast.

“Recent hurricanes had a much smaller impact on total U.S. natural gas supply because natural gas production in the GOM has been declining for years,” the EIA noted. In 2005, Hurricanes Katrina and Rita caused major natural gas outages; however, today gas production from the GOM territories only represents less than 2% of the country’s total.

If hurricanes were particularly strong and damaged infrastructure we could witness some problems in the supply of oil and therefore upward adjustments in prices.