The CEO of Genesis Energy Grant Sims on Thursday said that the company expected losses of up to $50 million this year due to a series of storms that battered offshore oil and gas production in the US Gulf of Mexico. He said the expected losses for this year is much bigger than in the past few years when the losses typically averaged between $8 to $10 million.
Genesis’ oil and gas pipeline volumes decreased as hurricanes Marco and Laura halted offshore oil and gas production for roughly two weeks. Hurricanes Delta and Zeta caused another disruption for about 15 days. Sims said the disruptions increased Genesis’ expenses. Genesis posted revenue of $443.1 million in the third quarter of 2020, falling from $621.7 million for the same quarter last year.
The hurricanes also brought structural damages to Genesis’ 610-km Cameron Highway Oil Pipeline System (CHOPS). The company is still working on getting the pipeline back to normal operations. Crude oil shipped on CHOPS is being rerouted and delivered into the Auger pipeline or the Poseidon pipeline system.
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Published on November 6, 2020 10:57 AM (GMT+8)Last Updated on November 6, 2020 10:57 AM (GMT+8)
