ATP Oil & Gas Corp. said, on Tuesday, that it sustained 'minimal impact' from Hurricane Ike, based on preliminary inspections of its drilling operations in the Gulf of Mexico.
As a result of unfounded fears, shares in ATP rose $0.69, (3.5%), to $20.18. Earlier in the session – prior to the report of the inspection- the company's stock had fallen to a 52-week low of $18.03.
The inspection report comes as energy producers in the region have been returning to their embattled facilities to inspect the collateral of Hurricane Ike.
Although production and supply disruption are still likely in the short-term, as the shutdowns cut already threadbare gasoline inventories to their lowest levels on record, sending pump prices spiking; a large chunk of U.S. energy production could restart within a week, according to the U.S. Department of Energy.
Initial steps to restart offshore production were already being made when the U.S. Minerals Management Service announced that the level of shut daily oil production had fallen from 2.7% to 97.2%, and similarly closed natural gas output fell 9.6% to 84.2% of daily output.
The ATP Innovator at the Mississippi Canyon Block 711 "Gomez" Hub is on location and initial assessments found the damage to be significantly less than expected, according to a statement released by the oil company.
ATP added that it is currently producing at Canyon Express and plans to bring production back online at other locations as soon as the receiving stations and pipelines are operational. Drilling efforts are continuing at West Cameron 479 and Mississippi Canyon 941.
All ATP personnel were evacuated from producing platforms, prior to Ike striking the region, with the company’s facilities forecast to be right in the path of destruction it’s path of destruction.
Various platforms, production facilities, pipelines and receiving stations, operating in the region, were similarly shut-in and evacuated.
Some 16 oil refineries - nearly a quarter of the U.S.'s production capacity - were left idled after the storm, several of whom were cut-off from power supplies.
J.P. Morgan wrote in a research note: “As with Gustav, power availability [as well as reportedly limited supplies of steam and industrial gases at some plants] will be the main hurdle to clear before facilities can restart.”
At current the only reports of serious damage to refineries include Shell's Deer Park plant, near Houston, and ConocoPhillips Alliance refinery in Belle Chasse, Louisiana - part of which was flooded by Ike.