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  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Frequent hurricane shutdowns weigh on U.S. energy results

10/29/2020 | 05:26pm EST
Hurricane Zeta in New Orleans

(Reuters) - As crews began returning to U.S. Gulf of Mexico offshore facilities on Thursday, this year's repeated oil and gas production halts were already hitting energy firms' results.

Eight named storms entered the U.S. Gulf of Mexico this year, most spiraling up to damaging storms that required offshore facility evacuations or temporary well shutdowns.

"It has been a difficult and challenging year because of the number of storms," said Erik Milito, president of trade group National Ocean Industries Association. U.S. offshore Gulf of Mexico oil production likely will end the year down by about 200,000 barrels per day (bpd) from where it started, he said.

Hurricane Zeta this week cut 4 million barrels over four days, halting up to 85% of daily offshore Gulf of Mexico oil production and nearly 58% of its natural gas output. It and other storms led to pipeline and onshore processing facilities to close, hurting even wells that could stay open.

Weak energy prices dropped U.S. Gulf of Mexico output in July to 1.65 million bpd, before the series of storm-related shutdowns. It could recover some of the lost output in coming weeks, NOIA's Milito said.

Well closings will hit results at Hess Corp, which forecast a decline of 25,000 bpd in the current quarter on top of an about 19,000 bpd loss in the prior quarter on offshore maintenance and hurricane shut-ins.

W&T Offshore earlier forecast fourth quarter oil and gas production would fall below analysts' forecasts even though its platforms did not suffer major damage from repeated storms. The shut-ins also added about $5 million to its costs.

In addition to shutdowns at two platforms, Royal Dutch Shell on Thursday said other Gulf of Mexico output was hurt by disruptions away from its platforms. It also was restarting an onshore crude-oil processing unit knocked offline by power disruptions from the storm.

(Reporting by Erwin Seba and Gary McWilliams; Editing by David Gregorio)

© Reuters 2020
Latest news "Economy & Forex"
01:56pEuro zone to move on bailout fund reform amid COVID worries
01:35pIMPERIAL MINERALS : 26 November 2020Issue of Equity
01:33pCovid-19 Crisis Could Set Back a Generation of Women, U.N. Report Finds
01:32pCanada police supervisor denies effort to deceive Huawei CFO about indictment
01:18pHungary, Poland double down to try to eject rule-of-law condition from EU budget
01:18pPoland, Hungary moving deeper into isolation in EU - senior EU diplomat
01:16pNEWS HIGHLIGHTS : Top Company News of the Day
01:16pNEWS HIGHLIGHTS : Top Global Markets News of the Day
01:13pVELOCYS : profiled in Biofuels International
12:48pEU considering stopgap measure for UK financial services post Brexit, says EU diplomat
Latest news "Economy & Forex"