LOOP's Marine Terminal is located 20 miles off the Louisiana coast, where water is deep enough to accommodate deep-draft tankers.

TWENTY MILES OFF LOUISIANA'S coast, two immense, bright yellow steel platforms jut like skyscrapers out of the warm, blue waters of the Gulf of Mexico. The platforms serve as the nucleus of a complex operation through which flows 12 percent of the crude oil imported into the United States.

The two platforms make up the Marine Terminal of the Louisiana Offshore Oil Port, Inc. (LOOP). Not unlike a small city, the Control Platform consists of living quarters for 38 people, a control room, a vessel traffic control station, offices, a helicopter pad, and life support equipment. Connected to the Control Platform by a personnel bridge is the Pumping Platform, which contains four 7,000 horsepower pumps, power generators, meters, and laboratory facilities.

"LOOP generally conducts its business in a quiet and efficient manner, rarely experiencing an incident that would thrust the company into the limelight."

Stationed about one and a half miles from the Marine Terminal are three floating Single Point Moorings. Giant supertankers - some as long as four football fields - connect to these Single Point Moorings to discharge their cargoes of crude oil. Enormous hoses, costing $2.5 million, connect LOOP's pipeline to the ship so the cargo can be unloaded.

This offshore operation can pump crude oil to LOOP's facilities at a rate of 100,000 barrels per hour. The onshore facilities rival the Marine Terminal in complexity and size.

If you've never heard of LOOP, you probably have plenty of company. Its offshore operation is located miles off the Lafourche Parish and its onshore facilities are either underground or off the beaten path, LOOP is not exactly a household name. Another reason we seldom hear of this immense operation is that LOOP generally conducts its business in a quiet and efficient manner, rarely experiencing an incident that would thrust the company into the limelight.

"The facility has operated since 1981 without experiencing a significant oil spill."

The LOOP story began in the late 1960's and early 1970's when declining domestic oil production made it obvious that the United States would have to find a efficient and safer method of importing crude oil. The answer to the problem was to build several strategically located superports. With the backing of Edwin Edwards - who was then serving his first term as governor - and the state's congressional delegation, Louisiana was chosen as home for the only superport that was built.

"Considering the long history of the oil and gas industry in Louisiana, the extensive work experience our citizens have in the industry, and our vast natural resources, Louisiana was a logical choice to serve as the home of the nation's first and only oil superport," says Governor Edwards. And for the past 13 years, LOOP has stood as an outstanding example of safety, efficiency, and environmental protection."

Huge vessels, known as very large or ultra large crude carriers, arrive at LOOP with up to 4.2 million barrels of crude oil on board. These vessels are too large and require too much draft to enter inland ports.

The offshore superport concept was embraced by many experts because it resolved a number of potential problems caused by America's growing dependence on imported oil. The giant tankers, which can most efficiently transport oil from the Middle East, are too large to enter many inland U.S. ports. The largest of these tankers, which can carry 4.2 million barrels of crude oil, need water depths of 85 feet and plenty of room to maneuver.

Before LOOP was built, these supertankers remained offshore, where they transferred their cargo to smaller tankers, which in turn brought the crude oil to shore. This operation, known as lightering, is still practiced by some shippers but is not considered to be as safe and efficient as off-loading at LOOP. There was also concern about adding more congestion to the nation's already busy ports, as well as the potential for accidents along inland waterways.

Construction of LOOP began in 1978, and the first tanker was off-loaded in May 1981. Contrary to the impressions of many people, LOOP is not a public agency; rather, it is a privately owned company, built and operated with private funds. Five oil companies own LOOP, but it is operated as a separate entity. The original concept of LOOP as a facility that could efficiently and safely unload large quantities of crude oil has so far proven valid. The facility has operated since 1981 without experiencing a significant oil spill.

An environmental impact study conducted prior to construction of LOOP projected a spill rate of 5 barrels per one million barrels unloaded. LOOP's record is only 7 percent of the projection. Between 1981 and 1993, a total of 894 barrels were spilled. This compares to 2.9 billion barrels that were unloaded.

The combination of a valid concept, intensive employee training, and state-of-the-art equipment and facilities is responsible for LOOP's success in avoiding significant spills, according to LOOP President Robert Thompson.

"LOOP is not a public agancy; rather, it is a privately owned company, built and operated with private funds."

"Our attitude is that one barrel of oil spilled from our facility is too much," says Thompson. "On the rare occasions when we experience a small spill, bells ring and flags wave. Each of these incidents is reported to various federal and state authorities and is closely analyzed by LOOP. We don't want to repeat a mistake."

LOOP is closely regulated by various agencies, including the U.S. Department of Transportation and the Louisiana Offshore Terminal Authority. The legislation that authorized construction and operation of LOOP requires implementation of an environmental protection plan designed to ensure that the facilities have no negative impact on Louisiana's fragile environment, marshes, fisheries, wildlife, and coastline. Under that plan, LOOP spends about $1 million per year on various monitoring and sampling programs conducted by the Coastal Ecology Institute -- a component of Louisiana State University's Center for Coastal, Energy, and Environmental Resources and the state Department of Wildlife and Fisheries.

At LOOP's Marine Terminal, vessel traffic controllers maintain a 24-hour watch over all vessel traffic in the LOOP controlled safety zone. Similar to air traffic controllers, they monitor radar and maintain continual radio communication with tankers.

The activities include regular monitoring and sampling of wildlife, marine life, and plant life along areas that could be impacted by LOOP's operations. LOOP is currently working with state and federal agencies on a revegetation program in the vicinity of where the company's pipeline comes to shore. The objective is to slow the beach erosion process along the pipeline corridor by planting natural vegetation.

Through this 48-inch pipeline, the crude oil that began its 12,000 mile journey in the Middle East months earlier arrives at LOOP's onshore facilities. Once onshore, the crude oil is pumped through the pipeline 25 miles to LOOP's Clovelly Dome Storage Terminal, located near the town of Galliano. This terminal consists of eight caverns with a total storage capacity of 40 million barrels, a 25-million-barrel Brine Storage Reservoir, and other facilities. These underground caverns were solution-mined from a naturally occurring salt dome. The caverns are always full of either brine, crude oil, or a combination of both.

"LOOP's efforts have not gone unnoticed. The company was recently presented the U.S. Senate Innovation Award for Louisiana."

Salt domes were selected as the best method of storing the crude oil for numerous reasons, not the least of which is safety. Matching the storage capacity of the domes with above-ground tanks would have required a tank farm of some 160 tanks with a capacity of 250,000 barrels each. The presence of so many tanks in an area prone to hurricanes was deemed an unacceptable risk.

The system by which oil is pumped in and out of the domes is both simple and complex. When oil enters a cavern, it displaces brine, which, in turn, goes into the Brine Storage Reservoir, a 220-acre lake made especially for LOOP. To remove oil from a cavern, brine is pumped into the bottom of the cavern. Since brine is heavier than oil, it remains on the bottom and forces the oil out of the top through a pipe. Brine's heavier weight prevents it from mixing with the oil. Five connecting pipelines tie LOOP to over 30 percent of the U.S. refining capacity, stretching from Louisiana to Michigan.

LOOP's efforts have not gone unnoticed. The company was recently presented the U.S. Senate Innovation Award for Louisiana. A 14-member selection board chose LOOP for the prestigious award based on a wide array of factors. And last year, the U.S. Coast Guard awarded its Public Service Commendation for the company's contributions to maritime safe and marine environmental protection.

Rafael Bermudez is a consultant to LOOP.

Return to the Cover Stories Table of Contents Page

Return to the Louisiana Environmentalist Magazine Home Page