*
Ports in Louisiana, including deepwater LOOP, shut
*
Six Louisiana oil refineries slow operations
*
Exxon's Baton Rouge cuts rates to 20%
*
Cotton at risk from heavy rain and flooding
*
Crop shipments to the Mississippi Gulf region disrupted
(Adds latest offshore oil, gas output declines, analyst comment
on extent of disruption in paragraphs 6-8)
By Marianna Parraga, Erwin Seba and Tom Polansek
HOUSTON/CHICAGO, Sept 11 (Reuters) - Energy production
and agricultural exports out of the U.S. Gulf of Mexico were
disrupted on Wednesday, and oil refineries in Louisiana slowed
operations ahead of Hurricane Francine's landfall later in the
day, according to official and operator reports.
Port Fourchon, Louisiana, home to marine and equipment
suppliers to offshore oil producers, was closed to vessel
traffic as was the Louisiana Offshore Oil Port (LOOP), the only
U.S. deepwater port that can handle very large crude carriers
(VLCCs) for oil imports and exports.
New Orleans, Plaquemines, Cameron, Lake Charles and Houma
ports remained closed on Wednesday, the U.S. Coast Guard said,
tying up fuel, soybean and grains headed for export. Francine's
rains could threaten the region's cotton crop, agriculture
officials said.
Six eastern Louisiana refineries, most around New Orleans,
were operating with minimal staff to ride out the storm in the
plants. Exxon Mobil's ( XOM ) Baton Rouge refinery cut output to
as low as 20% of its 522,500-barrel-per-day (bpd) capacity in
preparation for Francine's landfall later on Wednesday.
U.S. crude oil climbed as much as $2 a barrel on
Wednesday, driven by fears of lengthy production shutdowns in
the offshore oil patch as Francine barreled through.
Nearly 39% of oil and almost half of natural gas production
in the U.S. Gulf of Mexico was offline on Wednesday, according
to the offshore regulator. A total of 171 production platforms
and three rigs had been evacuated.
The shut-ins cut nearly 675,000 barrels per day of oil, and
907 million cubic feet of natural gas from offshore production,
according to the U.S. Bureau of Safety and Environmental
Enforcement.
Oil and gas production could be affected for about two weeks
depending on the severity of the hurricane on landfall, said
Alex Gafford, an analyst at East Daley Analytics.
Francine was moving northeast on Wednesday with maximum
sustained winds of 90 mph (145 kph), the U.S. National Hurricane
Center said in an afternoon update. Its center is expected to
move across Mississippi on Thursday.
The storm is expected to bring heavy rainfall and the risk
of considerable flooding across southeastern Louisiana,
Mississippi, far southern Alabama and northern Florida.
Louisiana Governor Jeff Landry and U.S. President Joe Biden
declared state of emergency for Louisiana.
The hurricane could spare liquefied natural gas plants
recently built or expanded near the U.S. Gulf of Mexico, which
is home to about 15% of U.S. oil production and 2% of natural
gas output. The storm track was farther east than many of the
coastal plants.
TEXAS RELIEVED
As the hurricane moved north along the Texas coast, some
ports that had closed to vessel navigation earlier this week
including Beaumont, Port Arthur, Sabine and Brownsville began
post-storm assessments in preparation for reopening, the Coast
Guard said.
Francine has disrupted crop shipments to the Mississippi
Gulf region, responsible for about 55% of U.S. soy exports, said
Mike Steenhoek, executive director of the Soy Transportation
Coalition, an industry group.
"The barge companies are not directing their barge flotillas
to go down into that area until the storm exits the region,"
Steenhoek said.
Francine's ultimate impact will depend on how severe the
storm is, Steenhoek said. While hoping for minimal disruptions
and damage, traders also are watching to see whether Francine
brings needed precipitation to the Mississippi River at a time
when low water levels have slowed grain transportation.
Farmers in the central Gulf Coast region and the Mississippi
Delta were preparing for the storm's arrival by harvesting
crops, including rice and soybeans, where possible, the U.S.
Department of Agriculture said in a weather report.
Much of the region's cotton crop is vulnerable to damage
from rain and winds as their bolls are opening, USDA said.