Oil majors are evacuating personnel and shutting in production across the Gulf of Mexico as Hurricane Isaias strengthens on its path toward the northern US Gulf Coast, taking about a quarter of the region's oil output offline.
The US Marine Minerals Administration said 511,619 barrels per day of oil production — 25.08 per cent of Gulf output — had been shut in as of midday Wednesday. Gas production was also affected, with 350.25 million cubic feet per day, or 16.37 per cent of Gulf output, taken offline. Eight production platforms and two non-dynamically positioned rigs were evacuated, while one DP rig moved away from the storm's path.
Shell and Chevron are among the operators taking precautionary action. Shell shut in production and evacuated personnel from its Mars, Olympus, Ursa, Vito and Appomattox facilities, and began removing non-essential personnel from other Gulf assets including Stones. Chevron started shut-in procedures at four of its operated facilities and moved additional personnel onshore, while BP began pulling non-essential workers from its Gulf facilities. Operators are expected to inspect offshore installations before restarting production once the storm clears and crews can return.
The disruption rattled energy markets already on edge over the Iran war. December Brent crude futures rose 5 per cent to $105.23 a barrel on Thursday, while December West Texas Intermediate futures gained 5 per cent to $92.70, according to the Wall Street Journal.
The National Hurricane Center said Isaias was intensifying and was expected to pass north of the Yucatan Peninsula before making landfall along the northern Gulf Coast late Friday or early Saturday. Hurricane warnings have been issued for stretches of the Alabama and Louisiana coasts.
Sources:
Hurricane Isaias forces evacuations and production cuts in US Gulf — Splash247
Oil Majors Cut Production in Gulf of Mexico as Hurricane Isaias Strengthens — Wall Street Journal
The US Marine Minerals Administration said 511,619 barrels per day of oil production — 25.08 per cent of Gulf output — had been shut in as of midday Wednesday. Gas production was also affected, with 350.25 million cubic feet per day, or 16.37 per cent of Gulf output, taken offline. Eight production platforms and two non-dynamically positioned rigs were evacuated, while one DP rig moved away from the storm's path.
Shell and Chevron are among the operators taking precautionary action. Shell shut in production and evacuated personnel from its Mars, Olympus, Ursa, Vito and Appomattox facilities, and began removing non-essential personnel from other Gulf assets including Stones. Chevron started shut-in procedures at four of its operated facilities and moved additional personnel onshore, while BP began pulling non-essential workers from its Gulf facilities. Operators are expected to inspect offshore installations before restarting production once the storm clears and crews can return.
The disruption rattled energy markets already on edge over the Iran war. December Brent crude futures rose 5 per cent to $105.23 a barrel on Thursday, while December West Texas Intermediate futures gained 5 per cent to $92.70, according to the Wall Street Journal.
The National Hurricane Center said Isaias was intensifying and was expected to pass north of the Yucatan Peninsula before making landfall along the northern Gulf Coast late Friday or early Saturday. Hurricane warnings have been issued for stretches of the Alabama and Louisiana coasts.
Sources:
Hurricane Isaias forces evacuations and production cuts in US Gulf — Splash247
Oil Majors Cut Production in Gulf of Mexico as Hurricane Isaias Strengthens — Wall Street Journal
