Tag Archives: Hurricane Laura

Around 295,000 without power from Hurricane Sally in Alabama, Florida

(Reuters) – Around 295,000 homes and businesses were still without power on Friday in Florida and Alabama after Hurricane Sally smashed into the Gulf Coast early Wednesday, according to local utilities.

That is down from a total of more than 614,000 customers affected by the storm in Florida, Alabama and Georgia.

NextEra Energy Inc’s Gulf Power utility in Florida said it has already restored service to about 158,000 customers. The utility still has about 126,500 without power.

In Louisiana, which was not hit by Sally, about 40,000 customers were still without power in the southwestern part of the state since Hurricane Laura hit the coast in late August.

Entergy Corp, which still has about 25,600 out in Louisiana, said it expected to restore service to most customers by Sept. 23. In the Hackberry area where the Cameron LNG export plant is located, Entergy has said it expects to restore service by Sept. 20.

(Reporting by Scott DiSavino)

IEA says oil demand recovery set to slow for rest of 2020

By Noah Browning

LONDON (Reuters) – The International Energy Agency (IEA) trimmed its 2020 oil demand forecast on Tuesday, citing caution about the pace of economic recovery from the pandemic.

The Paris-based IEA cut its 2020 outlook by 200,000 barrels per day (bpd) to 91.7 million bpd in its second downgrade in as many months.

“We expect the recovery in oil demand to decelerate markedly in the second half of 2020, with most of the easy gains already achieved,” the IEA said in its monthly report.

“The economic slowdown will take months to reverse completely … in addition, there is the potential that a second wave of the virus (already visible in Europe) could cut mobility once again.”

Renewed rises in COVID-19 cases in many countries and related lockdown measures, continued remote working and a still weak aviation sector are all hurting demand, the IEA said.

China – which emerged from lockdown sooner than other major economies and provided a strong prop to global demand – continues a strong recovery, while a virus upsurge in India contributed to the biggest demand drop since April, the IEA said.

Increasing global oil output and the downgraded demand outlook also mean a slower draw on crude oil stocks which piled up at the height of lockdown measures, it added.

The agency now predicts implied stock draws in the second half of the year of about 3.4 million barrels per day, nearly one million bpd less than it predicted last month, with July storage levels in developed countries again reaching record highs.

However, preliminary data for August showed industry crude oil stocks fell in the United States, Europe and Japan.

As output cuts eased among producers from the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, global oil supply rose by 1.1. million bpd in August.

After two months of increases, recovery among countries outside the OPEC+ pact stalled, with production in the United States falling 400,000 bpd as Hurricane Laura forced shut-ins.

(Reporting by Noah Browning; editing by Jason Neely)

U.S. disasters cause insurance double whammy for pandemic-hit businesses

By Suzanne Barlyn and Alwyn Scott

(Reuters) – As insurers brace for an expensive natural-disaster season because of storms and wildfires ravaging parts of the United States, the novel coronavirus is giving them an odd financial break.

Many companies that were damaged or evacuated because of natural catastrophes were already generating far less revenue due to the pandemic. That means they will get lower payouts upon filing business-interruption claims, according to analysts, lawyers and industry sources.

It is another hit for small businesses that rebuilt after major disasters in recent years, only to see revenue screech to a halt during the pandemic, and then enter another aggressive disaster season. It could leave some companies unable to survive, said John Ellison, an attorney at Reed Smith LLP who has represented policyholders in cases stemming from hurricanes Katrina, Rita and Sandy.

“There is a reasonable chance that any business in that situation is not going to make it,” he said.

Claims are never simple to file or process, with insurers, lawyers and accountants quibbling over calculations. They rarely cover all losses.

The past several months have been particularly tough for policyholders in states like California, Iowa and Louisiana. They were already battling insurers in court over pandemic claims and then suffered damage from Hurricane Laura, wildfires and a destructive, fast-moving storm that devastated parts of the Midwest.

Most disaster claims are for property damage, but a “significant” amount still comes from business interruption, based on the way insurers have attributed losses after major disasters, said Piper Sandler analyst Paul Newsome.

Insurers do not disclose how much of their total disaster losses are for business interruption.

The amount of payouts for disasters during the pandemic depend on the business, said Loretta Worters, a spokeswoman for the industry-funded Insurance Information Institute. A liquor store whose business is booming might have higher revenues than six months ago, she said.

Many insurers make a 12-month income projection when calculating the claim, Worters said.

Business-interruption policies cover losses based on recent income trends, so payouts will almost certainly be lower for companies whose operations suffered because of the pandemic, said Credit Suisse analyst Mike Zaremski. Government-imposed lockdowns, supply-chain disruptions and weaker customer demand have hurt many businesses.

That is the situation in Guerneville, California, a wine region where many businesses had to evacuate because of wildfires after already being hurt by the pandemic.

For instance, Big Bottom Market, a gourmet deli there, had to close from March to May. When it re-opened, business was initially off by 40% compared with the prior year, said owner Michael Volpatt. Introducing new services like catering stemmed the tide, but July revenue was still down 9%, Volpatt said.

An Aug. 18 mandatory wildfire evacuation forced Big Bottom Market to close for 12 days. The store escaped property damage but lost over $20,000 in revenue, said Volpatt, who is preparing an insurance claim.

Business interruption was already a sore point between insurers and customers, who are battling in court about whether policies cover pandemics. Only a few of nearly 1,000 lawsuits that are pending have produced rulings, with mixed results.

Hair-salon owner Berlin Fisher is a plaintiff in one such case filed in July. A Hiscox Ltd unit denied business interruption claims for Fisher’s two California salons, whose revenue was wiped out by a measure barring indoor haircuts, he said. Fisher’s San Francisco salon went under as the pandemic dragged on.

A Hiscox spokesman declined comment.

In June, Fisher began cutting hair under a tent in Guerneville to make ends meet. He evacuated four weeks later because of the fires and filed another claim, which is pending.

Fisher pays about $100 monthly for the policy, but said it may not be worth the expense.

“There’s a huge discrepancy between what people who sold the insurance told me then and what actually happens,” he said.

(Reporting by Suzanne Barlyn and Alwyn Scott; Editing by Lauren Tara LaCapra and Dan Grebler)

Trump tours parts of Louisiana, Texas hit by Hurricane Laura

By Nandita Bose

ORANGE, Texas (Reuters) – President Donald Trump on Saturday toured areas hit by Hurricane Laura in Louisiana and in Texas receiving briefings on emergency operations and relief efforts.

“One thing I know about this state, it rebuilds fast,” Trump told a gathering that included Louisiana Governor John Bel Edwards, U.S. lawmakers and federal agency officials. Trump did not meet with residents.

The massive storm hit Louisiana early on Thursday with 150 mile-per-hour (240 kph) winds, damaging buildings, knocking down trees and cutting power to more than 650,000 people in Louisiana and Texas. However, Laura’s storm surge was much less than predicted.

The Category 4 hurricane killed at least 15 people, including some killed by carbon monoxide poisoning from the unsafe operation of generators. Governor Edwards called Laura the most powerful hurricane to strike Louisiana, surpassing even Katrina, which was a Category 3 storm when it hit in 2005.

Trump told officials, referring to those who were lost, “It’s a tremendous number, but you were thinking it could be, could have been, a lot worse.”

Trump signed a disaster declaration for Louisiana on Friday.

He also met with National Guard personnel in Louisiana helping with relief efforts and later flew to Orange, Texas, to meet with officials.

After meeting officials in Lake Charles, Trump said “come here fellas, I want a little power,” and began autographing pieces of paper. He gave a law officer one and said “Here sell this tonight on Ebay, you’ll get $10,000.”

(Reporting by Nandita Bose in St. Charles, La., and Timothy Gardner in Washington; Editing by Matthew Lewis and Daniel Wallis)

Oil markets flat as restarts begin at storm-hit energy operations

By Erwin Seba

HOUSTON (Reuters) – Energy companies on Friday continued efforts to restore operations at U.S. Gulf Coast offshore platforms and refineries shut by Hurricane Laura as oil markets largely shrugged off the storm’s impact.

Some 300 offshore production facilities and half-dozen refineries halted ahead of a Category 4 storm that hit the coast of Louisiana early Thursday with winds of 150 mile per hour (240 kph). The destructive winds cut a narrow path through the area, sparing facilities not directly in its path.

However, Citgo Petroleum’s 418,000-barrel per day Lake Charles, Louisiana, plant was on the storm’s path, and repairs could take four to six weeks, according to Mizuho Securities. The company did not reply to requests for comment.

Motiva Enterprises, operator of the largest U.S. refinery, and Valero Energy Corp on Friday began restarting their Port Arthur, Texas, refineries.

U.S. crude futures traded at $43.08 per barrel at midday, up four cents, up slightly from $42.34 a week ago. U.S. gasoline futures were up 2 cents, less than 2% higher than they were a week ago.

About 84%, or 1.56 million barrels per day, of U.S. Gulf of Mexico crude output and 60% of natural gas offshore production were shut on Thursday, the U.S. Department of Interior reported.

Exxon Mobil Corp said its 369,024 bpd Beaumont, Texas, refinery, about 50 miles (80 km) west of the storm’s landfall, required “minor repairs,” a spokesman said. The company was taking steps to restart once power and port operations were restored.

Cheniere Energy Inc’s and Cameron LNG’s Cameron liquefied natural gas plants in Louisiana took almost no pipeline gas early on Friday, according to preliminary data from Refinitiv.

“Refiners may be reluctant to quickly return to production when the product they make is a money losing proposition,” Robert Yawger, director of energy futures at Mizuho Securities, wrote on Friday.

The ports of Beaumont, Orange and Sabine, Texas, and Cameron and Lake Charles, Louisiana, remained closed on Friday, according to the U.S. Coast Guard.

Houston, the United States’ largest energy export port, restarted operations on Thursday and had nearly halved the list of 53 vessels waiting on Thursday to reenter the port.

One-way movement and other restrictions were in place on Friday at points along the Houston Ship Channel, according to the U.S. Coast Guard.

(Reporting by Erwin Seba; writing by Gary McWilliams; Editing by Marguerita Choy and David Gregorio)

Remnants of Hurricane Laura drench Arkansas as storm heads east

(Reuters) – The remnants of Hurricane Laura were dousing Arkansas on Friday morning and due to bring rain to the East Coast over the weekend.

Now a tropical depression, Laura had proved less damaging than feared, despite arriving in Louisiana this week as one of the most powerful hurricanes recorded in the United States.

The storm killed at least six people in Louisiana, including four who were killed when trees fell into homes, damaged buildings in Louisiana and Texas and knocked out power for hundreds of thousands of residents.

U.S. President Donald Trump is expected to head to the Gulf Coast over the weekend to survey the damage.

The storm was forecast to drop heavy rain over Arkansas, Mississippi, Alabama, Tennessee, Missouri and Kentucky as it headed out to the East Coast, the National Weather Service said.

At its peak upon making landfall on Thursday morning, Laura had maximum sustained winds of 150 miles per hour (241 km per hour), faster than even Hurricane Katrina, which sparked deadly levee breaches in New Orleans in 2005 after arriving with wind speeds of 125 mph.

What would have been a dangerous 20-foot (6-m) storm surge that forecasters had predicted could move 40 miles (64 km) inland was avoided when Laura tacked east just before landfall, Louisiana Governor John Bel Edwards said. That meant a mighty gush of water was not fully pushed up the Calcasieu Ship Channel, which would have given the storm surge an easy path far inland.

(Reporting by Jonathan Allen in New York; Editing by Marguerita Choy)

Hurricane Laura slams Louisiana, kills six, but less damage than forecast

By Elijah Nouvelage and Ernest Scheyder

LAKE CHARLES, La. (Reuters) – Hurricane Laura tore through Louisiana on Thursday, killing six people and flattening buildings across a wide swatch of the state before moving into Arkansas with heavy rains.

Laura’s powerful gusts uprooted trees – and four people were crushed to death in separate incidents of trees falling on homes. The state’s department of health said late Thursday that there were two more fatalities attributed to the hurricane – a man who drowned while aboard a sinking boat and a man who had carbon monoxide poisoning caused by a generator in his home.

In Westlake, a chemical plant caught fire when hit by Laura, and the flames continued to send a chlorine-infused plume of smoke skyward nearly 24 hours after landfall.

Laura caused less mayhem than forecasts predicted – but officials said it remained a dangerous storm and that it would take days to assess the damage. At least 867,000 homes and businesses in Louisiana, Texas and Arkansas remained without power on Thursday afternoon.

“This was the most powerful storm to ever make landfall in Louisiana,” Governor John Bel Edwards told a news conference. “It’s continuing to cause damage and life-threatening conditions.”

Laura’s maximum sustained winds of 150 miles per hour (241 kph) upon landfall easily bested Hurricane Katrina, which sparked deadly levee breaches in New Orleans in 2005, and arrived with wind speeds of 125 mph.

The NHC said Laura’s eye had crossed into southern Arkansas late Thursday afternoon and was heading to the northeast at 15 mph (24 kph). The storm could dump 7 inches (178 mm) of rain on portions of Arkansas, likely causing flash floods.

Laura was downgraded to a tropical depression by the NHC at 10 p.m., and the forecaster said it will move to the mid-Mississippi Valley later on Friday and then to the mid-Atlantic states on Saturday.

CHEMICAL PLUME

Laura’s howling winds leveled buildings across a wide swath of the state and a wall of water that was 15 feet (4.6 m) high crashed into tiny Cameron, Louisiana, where the hurricane made landfall around 1 a.m.

A calamitous 20-foot storm surge that had been forecast to move 40 miles (64 km) inland was avoided when Laura tacked east just before landfall, Edwards said. That meant a mighty gush of water was not fully pushed up the Calcasieu Ship Channel, which would have given the storm surge an easy path far inland.

Tropical-force winds were felt in nearly every parish across Louisiana – and Edwards warned that the death toll could climb as search and rescue missions increase.

CLEANUP BEGINS

Residents of Lake Charles heard Laura’s winds and the sound of breaking glass as the storm passed through the city of 78,000 with winds of 85 mph and gusts up to 128 mph in the hour after landfall.

National Guard troops cleared debris from roads in Lake Charles on Thursday afternoon. There were downed power lines in streets around the city, and the winds tipped a few semi-trucks onto their sides.

The windows of the city’s 22-story Capital One Tower were blown out, street signs were toppled and pieces of wooden fence and debris from collapsed buildings lay scattered in the flooded streets, video footage on Twitter and Snapchat showed.

Lake Charles resident Borden Wilson, a 33-year-old pediatrician, was anxious about his return home after evacuating to Minden, Louisiana.

“I never even boarded up my windows. I didn’t think to do that. This is the first hurricane I’ve experienced. I just hope my house is fine,” he said in a telephone interview.

(Reporting by Elijah Nouvelage in Lake Charles, La., Ernest Scheyder in Starks, La., Brad Brooks in Lubbock, Texas, Jennifer Hiller and Gary McWilliams in Houston, Liz Hampton in Denver, Timothy Ahmann, Susan Heavey and Daphne Psaledakis in Washington, Gabriella Borter and Peter Szekely in New York; Writing by Gabriella Borter and Brad Brooks; Editing by Matthew Lewis and Stephen Coates)

Prayers and faxed letters: Texas woman buries husband who died of COVID-19

By Callaghan O’Hare and Maria Caspani

HOUSTON (Reuters) – As hundreds of thousands of people in Texas fled their homes ahead of Hurricane Laura on Wednesday, Michelle Gutierrez was in Houston burying her husband David, who died of COVID-19 on Aug. 14.

The couple would have celebrated their 10th wedding anniversary on Sept. 4, a few days after David’s 54th birthday. Michelle and David met at a mechanic’s shop in Houston in 2009, when he had stepped in as a translator to help her with a mechanic who only spoke Spanish.

He then offered to fix her computer, and the rest is history. They built a life together in Houston, where they raised five children and he worked as a software engineer.

In early July, David was hospitalized after his symptoms of COVID-19, the disease caused by the new coronavirus, worsened. His wife and two daughters had tested positive but showed no symptoms.

David would fight the virus for over a month at Houston’s St. Luke’s in The Woodlands hospital, where he eventually died of heart failure.

“It’s been a roller coaster, every day is different,” Michelle said on the day of his funeral, her voice breaking with emotion. “One day you’re fine and the next day, you walk around and memories flood your mind… You just wish this was all a dream.”

About a week after her husband was hospitalized, Michelle and her daughters gathered under his hospital window to pray for him.

“And then after that first night I was like, ‘You know what, I’m gonna come in every night, honey, I’m going to be here every night, praying for you and just being there in spirit’,” she said.

And so she did, until the Friday in August when David passed away.

Michelle said she kept trying to communicate with her husband as his condition worsened. At first, before he was put on a ventilator, they managed to text one another, she said. But once he was in a coma, she began faxing letters to the hospital, and nurses would read them aloud to him.

David is one of thousands who have succumbed to the coronavirus in Texas, where a spike in cases in June and July strained hospital systems as the virus engulfed many southern states.

Nearly 180,000 people in the United States have died from COVID-19, the highest in the world, with 5.8 million cases recorded nationwide, according to a Reuters tally, also the highest in the world.

At David’s wake, a bottle of hand sanitizer and social distancing signs were prominently displayed as masked mourners walked to the casket to bid their farewells.

As for the future, Michelle said she was enrolling in a college nursing program. She had already planned to do so before her husband’s passing, but feels more motivated now.

“That’s more so now than before after seeing how these nurses took care of David and they were wonderful… And I could not have done it without them.”

(Reporting by Callaghan O’Hare in Houston, Texas and Maria Caspani in New York; Writing by Maria Caspani; Editing by Bernadette Baum)

U.S. energy firms tally hurricane damage, plot restarts as Laura races north

By Erwin Seba

HOUSTON (Reuters) – U.S. energy companies on Thursday were organizing crews and beginning to review offshore Gulf of Mexico platforms and assess damage to coastal operations as Hurricane Laura took its fierce winds inland.

The storm hit Louisiana early Thursday with 150 mile-per-hour (240 kph) winds, damaging buildings, knocking down trees and cutting power to more than 400,000 people in Louisiana and Texas. Its storm surge was less than predicted, sparing inland plants from feared flooding.

Laura passed over Lake Charles, Louisiana, and its oil refineries overnight and was moving quickly north toward Arkansas on Thursday.

Offshore operators were busy scheduling reconnaissance flights over the more than 300 offshore platforms and drilling rigs whose crews evacuated last week. Laura tore through the Gulf of Mexico’s prime oil production fields, with first assessments due Thursday for pipelines and platforms.

Exxon Mobil Corp said it was contacting employees of its 369,000 barrel-per-day (bpd) oil refinery and chemical plant in Beaumont, Texas, and preparing a preliminary tally of damages. The large plant was one of six plants along the Gulf Coast’s refinery row that shut this week ahead of the storm.

Even with no or little damage, refineries take days to resume production from a cold shut and the widespread power outages in the region and evacuations could slow the process further.

Utilities reported more than 650,000 customers in Texas and Louisiana were without power on Thursday and at least one reconnaissance flight was canceled because of travel disruptions.

Oil producers were preparing to fly over evacuated offshore platforms on Thursday. Some 1.5 million barrels of oil, and or 1.65 billion cubic feet of natural gas output were halted by well closures on Wednesday.

Companies have regularly scheduled crew changes beginning on Saturday and could take the first steps to resuming production this weekend if conditions allow, said Lani Moneyhon, manager of Bristow Group’s Galliano heliport. The company provides transport to offshore producers.

Energy firms typically fly over platforms looking for damage, and later conduct walk-throughs by safety experts before crews can return. It can take several days to run reviews and schedule crew returns.

(Reporting by Erwin Seba and Gary McWilliams; Editing by Marguerita Choy)

Oil prices slip as Hurricane Laura makes Gulf Coast landfall

By Ahmad Ghaddar

LONDON (Reuters) – Oil prices fell on Thursday as a massive hurricane in the Gulf of Mexico made landfall in the heart of the U.S. oil industry, forcing oil rigs and refineries to shut down.

Brent crude futures for October, which expire on Friday, fell 50 cents, or 1.1%, to $45.14 a barrel by 1359 GMT. The more active November Brent contract was down 55 cents, or 1.2%, at $45.61 per barrel.

U.S. West Texas Intermediate crude futures fell 39 cents or 0.9% to $43 a barrel.

Hurricane Laura made landfall early on Thursday in southwestern Louisiana as a category 4 storm, one of the most powerful to hit the state, with forecasters warning it could push a wall of water 40 miles inland from the sea.

Oil producers on Tuesday had shut 1.56 million barrels per day (bpd) of crude output, or 84% of the Gulf of Mexico’s production, evacuating 310 offshore facilities.

At the same time, refiners that convert nearly 2.33 million bpd of crude oil into fuel, and account for about 12% of U.S. processing, halted operations.

“Perhaps traders are waiting to see what the damage is but the limited impact so far may also just be a reflection of the current oil market dynamics. Temporary disruptions are easily covered,” OANDA analyst Craig Erlam said.

Oil prices also shrugged off U.S. crude inventory declines and signs that gasoline demand in the world’s biggest oil consumer were improving.

Crude oil stockpiles fell last week as exports soared the most in 18 months and refineries boosted production to the highest rate since March, Energy Information Administration data showed on Wednesday. Gasoline stocks also fell.

“It appears that the gasoline inventory reduction was due first and foremost to increased demand – gasoline demand rose to a six-month high of around 9.2 million bpd,” Commerzbank said.

(Additional reporting by Sonali Paul and Koustav Samanta; editing by Jason Neely)