Tropical Storm Gordon could be a problem for GOM producers

BOSTON (Bloomberg) -- Tropical Storm Gordon may become a hurricane as it crosses the Gulf of Mexico toward Louisiana and New Orleans, potentially causing issues for natural gas and oil production as it brushes the eastern edge of offshore energy fields.

Gordon, with top winds of 50 mi (80 km) per hour, was about 15 mi southwest of Marco Island, Florida, according to a National Hurricane Center advisory at 2 p.m. New York time. The storm could come ashore in southeastern Louisiana late Tuesday or early Wednesday.

“It is possible that Gordon could peak as a Category 1 hurricane after 36 hrs, just before landfall occurs,” Senior Hurricane Specialist Stacy Stewart wrote in his forecast. “Gordon is expected to bring life-threatening storm surge to portions of the central Gulf Coast.”

A hurricane watch has been posted for the Gulf Coast from eastern Louisiana to the Florida-Alabama state line. In addition, a tropical storm warning covers much of south Florida. A storm surge watch is in place from the Mississippi-Alabama border to Navarre, Florida.

Gordon, the Atlantic’s seventh storm, could graze the eastern edge of the offshore oil and natural gas platforms. The region produces about 5% of U.S. natural gas and 17% of crude oil, according to the Energy Information Administration. In addition, onshore facilities account for about 45% of U.S. refining capacity and 51% of its gas processing.

The Louisiana Offshore Oil Port said it is watching Gordon closely, but there currently are no disruptions.

“Any time you get a tropical cyclone in the Gulf production region there could be some disruption,’’ said Steve Silver, a senior meteorologist at Radiant Solutions in Gaithersburg, Maryland. “I do think we will see some strengthening.’’

Gordon could cause about $300 million in damage, mainly due to flooding along the Gulf coast, said Chuck Watson, a disaster modeler with Enki Research in Savannah, Georgia. There are already flash flood warnings out in the region due to another weather system.

In addition to wind and storm surge, Gordon could drop as much as 6 in. of rain across Louisiana and Mississippi.

The storm may gain strength as it crosses the warm waters in the Gulf, Stewart said. In addition, wind shear that has been hampering it, should fall away as it moves northwest.

Gordon will probably break up later in the week and its remnants could bring rain to the Great Plains, as well as the Midwest.