Hurricane Frequently Asked Questions

• Preparations since Katrina and Rita
• Offshore
• Retail
• Manufacturing

Preparations since Katrina and Rita

How are Shell's preparations different since hurricanes Katrina and Rita in 2005?

Shell has many years of experience in preparing for storms in the Gulf of Mexico, and we follow our prescribed plans of action as storms develop and move toward any of our operations. 
 
Shell and Motiva are committed to safety and the well-being of employees at our facilities and of residents in the communities where we do business. Safety is our top priority in the emergency operations of each Shell and Motiva site in the Gulf of Mexico and the land-based locations along the Gulf.  This includes the safe shutdown and startup of our facilities.

In the aftermath of the 2005 hurricane season, Shell and Motiva reviewed our operations and procedures and added some improvements.

For example, in our offshore operations, we made mooring system upgrades and design changes for anchored mobile offshore drilling units.  These include having more anchor lines, polyester-mooring lines and new anchor designs, and the use of suction piles instead of anchors in some cases, to reduce anchor drag damage to pipelines.

For onshore facilities, Shell and Motiva pre-wired manufacturing facilities and critical terminals for generators, so they will be able to quickly restore fuel deliveries following a storm.

For retail stations, Shell and Motiva have identified locations along evacuation routes as a priority for product deliveries, along with strategic locations identified by emergency response activities, local authorities, and densely populated areas.

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Offshore

How many people do you have offshore?
Shell has approximately 1,400 contract and full-time employees in the Gulf of Mexico (GOM). 

How much production do you have in the Gulf of Mexico?
Shell-operated GOM gross production averages 510,000 barrels of oil equivalent per day.

How do you decide whether or not to evacuate personnel?
From the time the storm is identified, meetings are held twice a day (or as needed) by the Hurricane Incident Commander with designated operations managers, drilling superintendents, communications teams and transport (marine and air logistics support) managers. This team begins the process of assessing the operational activities, people count and time it will take to safely shut in operations and evacuate personnel.

When the tropical storm or hurricane warning is issued, Shell begins evacuating non-essential personnel from offshore facilities, beginning with sites closest to the storm or hurricane's anticipated path. Non-essential personnel include construction and maintenance workers, caterers and others not directly responsible for producing or drilling operations.

In determining who is evacuated at this early stage, consideration is also given to those workers (Shell or contract) whose homes are in the hurricane’s anticipated path.

Where do you get your weather forecast information?
Shell contracts with a meteorological firm called Impact Weather, which provides up-to-date hurricane information from satellite images. Shell also uses the National Weather Service.

How do you evacuate/redeploy personnel?
We primarily use helicopters because of their speed and passenger comfort. If necessary, we utilize boats.

Does Shell own its own fleet of helicopters and boats?
Shell does not own any helicopters or boats. Contracts are in place for these services throughout the year, with additional resources contracted and dedicated to us during the hurricane season. 

Can we go offshore and film/interview personnel being evacuated/redeployed?
For safety reasons, as well as to maintain focus on production and hurricane preparations, we do not allow offshore visits during hurricane evacuations or redeployments.

When you bring personnel onshore, where do they arrive?
They arrive at various shore bases along the Gulf Coast. Unless the base is in the path of a storm, personnel usually return to the location from which they began so they have access to their vehicles.

Can we interview personnel as they return to the shore?
For safety and evacuation reasons, we do not facilitate media interviews of personnel as they arrive on shore from a hurricane evacuation. We do not feel it’s appropriate to hinder our personnel as they are trying to get home to be with their families. In addition, local coastal communities are often implementing their Parish/County hurricane emergency evacuations and contraflow plans.

How do you decide to shut in production?
From the time the storm is identified, meetings are held twice a day (or as needed) by the Hurricane Incident Commander with designated operations managers, drilling superintendents, communications teams and transport (marine and air logistics support) managers. This team begins the process of assessing the operational activities, people count and time it will take to safely shut in operations and evacuate personnel.

Shutting in of production and/or drilling operations is dictated by operations and projects underway at the time a tropical system starts to develop and the lead time necessary to safely and responsibly secure facilities and shut in production in a way that will allow for safe restart of production after the storm.

How do you shut in production? 
Minimal crews of 16 or fewer essential production personnel per platform remain offshore. This is the crew that will be responsible for final shut down if the hurricane continues to develop and moves toward a particular asset in the GOM.

Production is shut in starting with sub-sea and long-lead wells that require special shut in procedures. All equipment is secured and clamped or tied down. 

Production shut in processes could take three to five days.

How do you bring production back online?  How long does it usually take to bring production back online?
Once power and communications are restored, marine logistics support is established and the locations are deemed safe, personnel return to platforms and drilling rigs to restart production and recommence drilling activities. Production ramp up at each impacted facility will vary, but complete GOM production ramp up to pre-storm levels may take three to five days.

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Retail

How does Shell and Motiva accomplish its hurricane preparation objective?

Shell and Motiva monitor every tropical development that may potentially impact the United States and initiates preparation and recovery plans accordingly. In the past, we have taken actions to help ensure that adequate product supplies are available to consumers after a hurricane makes landfall including:

• Employing a supply management system for Shell branded operators to help maintain adequate supply for our customers.
• Securing generators to supply power to Shell branded stations and distribution terminals where most needed.
• Maintaining communications with county, state and federal officials to identify ways to resolve potential issues quickly.
   

What plans were made in 2007 by Shell and Motiva in preparation for 2008?

We implemented an expanded generator strategy in the Gulf Coast and other hurricane-prone states in the second quarter of 2006. Shell and Motiva have secured generators for the upcoming hurricane season, which can be deployed rapidly and strategically to impacted areas for emergency response. Stations near evacuation routes or those within dense population areas have been identified so these stations are the priority for supply before and after a storm. In addition, Shell and Motiva rolled out a "keep fill" program that helps maximize the amount of fuel available in the tanks at participating retail locations throughout the hurricane season.

How many sites in Florida/Gulf Coast have been pre-wired?
Shell and Motiva meet the pre-wiring requirements outlined in the Florida legislation. We have secured generators for the hurricane season that can be deployed rapidly and strategically to impacted areas in Gulf Coast states. And, we continue to work with various stakeholders, including legislators, to develop safe, strategic and cost effective generator deployment plans for other Gulf Coast states.  We think we are in a good position to restore emergency power and quickly and efficiently bring Shell branded stations back online as soon as it is safe to do so.

How many generators does Shell and Motiva have on standby for retail locations?

Shell and Motiva are ready to deploy generators into hurricane-affected areas. We feel we have an adequate supply of generators, and that we can deploy them rapidly and strategically to impacted areas in the Gulf Coast.  We think we are in a good position to restore emergency power and quickly and efficiently bring Shell branded stations back online as soon as it is safe to do so.

Have Shell and Motiva distribution terminals been pre-wired?
Yes. Power is a priority during hurricane season across Shell and Motiva's businesses. All of the South region distribution terminals are pre-wired for generators and transformers, so they are able to start safety procedures, restore power and ensure they can start delivering fuel.  Backup generators are also pre-staged in safe areas where they can be deployed to the terminal shortly after storm passes, if needed.

How are emergency fuel requests communicated?

Shell and Motiva have set up an emergency fuel request relay line that can be used to relay calls internally for emergency fuel requests during hurricane season 2008. 

Do you condone price gouging?

We do not condone price gouging and we actively work to prevent it.  We have a history of being sensitive to price changes caused by major supply disruptions or severe weather.

We encourage our operators to price responsibly and virtually all have done just that. Shell and our operators strive to be competitive and have a history of being sensitive to price changes, especially when caused by significant events.  

If a customer feels one of Shell’s retail stations is charging a price that is unjustifiable when compared to others (own or competitor sites) in the area, we recommend they contact their local state's attorney general or the Shell Customer Service center with details.

Allegations are taken seriously, and we will investigate sites with prices that are out of line with the market.  A state-by-state list of government agencies that track this information is available on our website. Shell Customer Service can be reached at 888-467-4355 [GO SHELL].

In what other Gulf Coast states do you now have generator deployment plans?

We are prepared to deploy mobile generators in any impacted Gulf Coast state. Motiva has a contract to deploy generators for use in affected locations within 24 hours after a disaster. We also have access to additional generators that are available for deployment within 96 hours after a disaster in the same areas.

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Manufacturing

What preparations do you make at refineries and petrochemical plants when a major storm or hurricane approaches?

To ensure the flow of supplies from Shell and Motiva facilities, our plants prepare and follow detailed hurricane planning and operations procedures that are reviewed and tested prior to each hurricane season.

When storm season begins, plant management teams monitor storms, and if necessary, implement procedures to secure facilities following specific timelines that are based on the direction and magnitude of the storm. All critical plant functions are considered, including computing services, communications, utilities, and health, safety, and environment. Shell and Motiva also assess the potential impact on deliveries of crude oil and petrochemical feedstocks, outgoing distribution of products, and onsite inventories. 

The severity and proximity of a hurricane or major storm to the facility will determine actions taken, including orderly shutdowns of facilities and the evacuation of personnel.

When major storms or hurricanes approach, when do you make the decision to stop operating a refinery or petrochemical plant?

Each refinery and petrochemical plant has its own specific shut down plan. The shut down could be partial or complete, planned or emergency. Regardless of the circumstance, extreme care is taken to shut down and secure each processing unit. The goal is to achieve a safe shutdown that will protect the equipment and enable a timely restart following a storm.

How much time does it take to shut down a refinery or chemical plant?

Shut downs can vary in time depending on the equipment and whether the shut down is partial or complete, planned or emergency. Regardless of the circumstance, extreme care is taken to shut down and secure each processing unit. The goal is to achieve a safe shutdown that will protect the equipment and enable a timely restart following a storm.

When you release personnel at a refinery or petrochemical site due to an approaching storm or hurricane, what personnel are left to maintain operations?

Shell and Motiva have a workforce on duty at all times that can operate and maintain a facility safely, or if need be, shut down the units in a safe and controlled manner. The team that stays behind during a storm to maintain control of the site has a mix of expertise deemed essential for the situation. This often includes personnel who work on logistics, security, site supervision, and an emergency medical team.

How strong of a hurricane can your refineries and petrochemical plants withstand?

Each manufacturing facility is built to meet or exceed applicable building codes or standards for the jurisdiction. It is impossible to state with certainty what hurricane category level each facility could withstand.  There are many variables to consider, such as strength, duration and path of a hurricane, and its proximity to the Shell or Motiva facility. 

The keys to hurricane management for Shell and Motiva are advance notice, tracking, and timely preparation to protect people and property. 

If you completely shut down a refinery or petrochemical plant, how long does it take to restart?

Restarting a refinery and petrochemical facility requires a well-planned and sequential process to ensure safety and success.  Each processing facility is unique.  The restarting of production units must follow a specific order because some units can operate independently and some must run in conjunction with other units. As a result, the time required to restart each plant will vary.  Even if a facility has not been damaged by a storm, it could take from one day to over a week to begin the restart process. If there is damage, restarting could take considerably longer.