A Wild-Weather Year, But No Major Energy Issues So Far

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--As a wild year in weather across North America continues, researchers at Colorado State University said they expected an intense hurricane season in the Atlantic, but lowered their estimate for named storms.

Industrial Info Resources (IIR) continues to track weather events across North America that could impact various aspects of the energy sector. Wildfires in the Rocky Mountain range became intense last month, with several Canadian operators shutting down due to blazes racing across Alberta.

The resort town of Jasper was razed by the fires, though much of the energy sector was spared. Cenovus Energy Incorporated (NYSE:CVE) (Calgary, Alberta), which ordered non-essential staff to leave its 50,000-barrel-per-day Sunrise facility in Alberta last month, realized total net production during the three-month period ending June 30 of 800,800 barrels of oil equivalent per day, a 10% increase over year-ago levels.

In the United States, Hurricane Beryl was the first named storm of the year, forming deep in the Atlantic in June before bringing heavy rains and flooding to the U.S. Gulf Coast. At least 2 million people in the Houston metropolitan area were left without power for days in the aftermath of the storm.

The remnants of Hurricane Debby, meanwhile, are moving northeast along the Atlantic coast. The storm threatened to dump up to 20 inches of rain over a dense manufacturing base in and around Florida, with storm surge as high as 10 feet along the state's Big Bend area.

IIR confirmed, however, that there was no major damage to industrial and energy assets in the region and power outages were minimal. Another tropical system is churning in the Caribbean, though its chances of developing into a major storm are remote.

On Monday, researchers at Colorado State University said they still expected an "extremely active" hurricane season for 2024, but reduced the number of named storms from 25 to 23. That number includes hurricanes Beryl and Debby, along with tropical storms Alberto and Chris.

Researchers cited warm water temperatures as a reason for an active year.

"A very warm Atlantic favors an above-average season because warm ocean water serves as a fuel source for hurricanes," the revised forecast read. "In addition, a warm Atlantic leads to lower atmospheric pressure and a more unstable atmosphere."

A flood watch is in place for parts of the Carolinas and the Virginias from Debby. Heat warnings are in place for much of the Gulf Coast, meanwhile, with the heat index in New Orleans flirting with 110 degrees Fahrenheit, a temperature sure to strain the grid due to demand for air conditioning.

There are no other major weather alerts across the United States.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).