Oil and gas companies in the US Gulf of Mexico are continuing to evacuate personnel and shut in facilities with tropical storm Ida forecast to strengthen into a potentially major hurricane over the weekend.
Shell, BP, Chevron, BHP and Equinor were among producers moving staff from offshore platforms in the Gulf that account for about 17pc of US crude output and 5pc of dry-gas production. Oil prices fell yesterday but were climbing today on concerns over possible production disruptions.
The National Hurricane Center expects Ida will pass near or over western Cuba later today before moving on to the southeastern and central Gulf of Mexico tonight and tomorrow. By the time it approaches the northern Gulf coast on 29 August, it is forecast to be at or near major hurricane strength.
Hurricane watches are in effect from Cameron, Louisiana, to the Mississippi/Alabama border, while storm surge watches are in place for Sabine Pass to the Alabama/Florida border.
Ida was about 75 miles (125km) north-north west of Grand Cayman this morning, according to an update from the National Hurricane Center. Maximum sustained winds have increased to almost 60mph (95km/h), and "steady to rapid strengthening" is expected over the next few days. Landfall is expected in Louisiana late on 29 August or early on 30 August.
Shell said late yesterday it was in the process of shutting in output and evacuating all workers from the Ursa, Mars, Olympus and Appomattox platforms. Output was also halted at the deepwater Stones field about 200 miles (322km) southwest of New Orleans, Louisiana, and the Turritella floating production, storage and offloading (FPSO) vessel prepared to disconnect and sail to safer waters. Non-essential staff were being moved from all eight of the company's Gulf of Mexico assets and some drilling operations paused.
BP was securing offshore facilities, evacuating staff from its four platforms and starting to shut in output. The mobile offshore drilling units contracted to the company were also securing their wells. And BHP planned to fully evacuate and shut in output from the Shenzi platform. Chevron was also pulling workers out.
ExxonMobil's 500,000 b/d Baton Rouge, Louisiana, refinery also started making preparations for the hurricane.
More than 45pc of US refining capacity is located along the Gulf coast.
