The typical volatility of the oil and gas sector has met its match with the volatility of this summer’s extreme weather. From day to day—and even minute to minute—oil and gas prices, supply, and demand can swing drastically. This summer’s weather is seeing the same volatility, with the earliest Category-5 hurricane on record, numerous severe weather events, and extreme temperatures.
Hurricanes can significantly disrupt offshore crude oil production and refining activity in the Gulf. The high winds and rough waters impact everything from the shipping routes delivering crude products to the evacuation of drilling platforms and closing of refineries. Many refineries have hardened plants, taken steps to reduce flooding, and improved communications between retailers and suppliers to anticipate disruptions, but hurricanes can still impact production.
Tapping into integrated real-time weather insights is one strategy that will contribute to this preparation. Whether protecting employees on offshore platforms or proactively planning for unavoidable weather events, having access to real-time weather data can further improve efficiencies and support safe operations.