The EIA says the growth of onshore oil and gas production — i.e. the shale boom — is immunizing the U.S. from rig closures caused by hurricanes.
And that’s good news because this hurricane season could be really bad.
The National Oceanic and Atmospheric Administration (NOAA) has predicted “above-normal tropical weather,” and up to 6 intense, named storms this year.
Last year there were two hurricanes that affected production.
In 1997, 26% of the nation’s natural gas was produced in the federal Gulf of Mexico. In 2012, that number was 6%.
The Gulf of Mexico’s share of crude oil production has also declined, from 26% in 2007-11 to 19% in 2012.
Here’s the chart showing that story:
The EIA doesn’t say so, but the implied conclusion is lower price volatility.
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