Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Companies

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors

A quarter of U.S. Gulf of Mexico output offline as hurricane advances

share with twitter share with LinkedIn share with facebook
09/16/2020 | 12:15am EDT
Waves crash along a pier as Hurricane Sally approaches in Gulf Shores

More than a quarter of U.S. offshore Gulf of Mexico oil output was shut and export ports were closed on Tuesday as Hurricane Sally stalled just off the U.S. Gulf Coast, pelting the region with heavy rains.

Sally weakened on Tuesday to a Category One hurricane with sustained winds of 85 miles per hour (140 kph), moving at a snail's pace that threatened "historic" flooding from Mississippi to Florida, the U.S. National Hurricane Center said in a late day update https://tinyurl.com/y66gwc4s.

The storm plowed through prime U.S. offshore production areas and was meandering on a path toward Alabama and the Florida Panhandle, sparing New Orleans and some larger Gulf Coast refineries from its winds and rain.

Royal Dutch Shell shut its Appomattox oil platform about 80 miles off the coast of Louisiana, joining BP, Chevron Corp and Equinor in closing facilities less than one month after Hurricane Laura knocked about 1.5 million barrels per day of oil offline temporarily.

Nearly 500,000 bpd of offshore crude oil production and 28%, or 759 million cubic feet per day (mmcfd), of natural gas output were shut in the U.S. Gulf of Mexico on Tuesday, according to the U.S. Interior Department.

U.S. crude oil futures rose nearly 3% and gasoline futures climbed 2.3% on Tuesday on the hurricane-related oil production and refinery shut-ins despite demand losses from the COVID-19 pandemic.

The nation's sole offshore terminal, the Louisiana Offshore Oil Port (LOOP), stopped loading tankers on Sunday, while ports from Biloxi, Mississippi, to Pensacola, Florida, were closed. Ports along the Mississippi River began to reopen late Tuesday with restrictions. The closings will cut roughly 307,000 bpd of crude and 411,000 bpd of refined products, according to Kpler data.

As of 10 p.m. CDT (0300 GMT) on Tuesday, Sally was about 65 miles (105 km) south of Mobile, Alabama, and crawling toward the northwest at 2 mph (3 kph). The crawling advance threatened to inundate the region.

Refiners in the region have wound down operations. Phillips 66 shut its Alliance oil refinery, which processes 255,600 bpd at a site along the Mississippi River on the coast of Louisiana.

Shell cut production to minimum rates on Monday at its 227,400-bpd Norco, Louisiana, refinery, but planned to keep a Mobile, Alabama, chemical and refinery plant operating with a skeleton crew.

Murphy Oil Corp said it was beginning to restore production at its eastern-most Gulf of Mexico oil platforms, and oil-giant Equinor said it expected to return workers to its Titan platform on Thursday.

By Erwin Seba

Stocks mentioned in the article
ChangeLast1st jan.
BP PLC 0.90% 194.74 Delayed Quote.-58.98%
EQUINOR ASA -1.92% 120.1 Delayed Quote.-30.20%
share with twitter share with LinkedIn share with facebook
Latest news "Companies"
08:57aChange in the Number of Shares and Votes in Immunovia AB (publ)
08:55aMERIDIAN : 3Q Results
08:55aSUN KONG : Notice of board meeting
08:55aLEFROY EXPLORATION : Section 708A(5)(e) Notice
08:53aVolatile oil prices still poised for second monthly decline
08:52aAsian rubber prices soar on supply woes, COVID glove shortage and China tyre demand
08:50aENERGA : The fourth call to submit Energa SA share documents
08:50aINTERNATIONAL CONSOLIDATED AIRLINES S A : Interim Management Statement for the nine months to September 30, 2020
08:50aOPEC daily basket price stood at $37.12 a barrel Thursday, 29 October 2020
Latest news "Companies"