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Likely hurricane threatens US Gulf oil and gas: Update

  • Märkte: Crude oil, Natural gas
  • 26.08.21

Adds new evacuations

A tropical depression in the Caribbean could strengthen into a hurricane and threaten oil and natural gas production in the US Gulf of Mexico over the weekend.

On its current track, the system is forecast to move over the southeastern and central Gulf of Mexico tomorrow night and early in the morning of 28 August, before approaching the northern Gulf coast on 29 August. This would bring it into the offshore region of the Gulf that accounts for about 17pc of US crude output and 5pc of dry gas production, while more than 45pc of US refining capacity is located along the Gulf coast.

Shell has begun evacuating non-essential staff from its Gulf of Mexico assets as a precaution. The Turritella floating production, storage and offloading (FPSO) vessel, at the deepwater Stones field about 200 miles southwest of New Orleans, is preparing to disconnect and sail to safer waters. Other producers are likely to follow suit.

While Chevron is also relocating some workers from its facilities in the region, it said production from those platforms remains at normal levels. Equinor probably will evacuate the Titan platform either today or tomorrow.

ExxonMobil's 500,000 b/d Baton Rouge, Louisiana, refinery has started making preparations for the hurricane.

"Operations are currently normal, and we continue to meet contractual commitments," the company said.

Tropical storm warnings have been issued for the Cayman Islands and parts of western Cuba, according to an advisory from the National Hurricane Center today.

Forecasters expect the depression to become a tropical storm tonight, and then a hurricane as it passes near western Cuba or the southeastern Gulf of Mexico. It could be "near major hurricane strength" by the time it reaches the northern Gulf coast, the National Hurricane Center said.


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