Updates with more shut-ins
Producers in the Gulf of Mexico have started to evacuate workers and halt output ahead of tropical storm Isaias, which is forecast to strengthen into a hurricane on Thursday.
About 511,619 b/d of US offshore oil production, or 25pc of total offshore output, was offline as of 12:30pm ET Wednesday, according to the Marine Minerals Administration. About 350mn cf/d of natural gas production, or 16pc of total US Gulf output, also was offline.
Isaias is forecast to pass north of the Yucatan Peninsula on Thursday and approach the US Gulf coast on Friday. The storm's maximum sustained winds have increased to nearly 50mph with higher gusts. Some strengthening is expected over the next 48 hours, with Isaias forecast by Thursday to become a hurricane, which would include sustained winds of at least 74mph.
Chevron has started shutting in production at four of its operated facilities in the Gulf of Mexico, and is evacuating all associated staff. Additional personnel are being relocated onshore, while output from the company's five remaining facilities in the region remains at normal levels. "At our onshore facilities, we continue to follow our established storm response procedures and are closely monitoring the projected path of the storm," Chevron said.
BP said it was also taking steps to protect its staff and operations in the region. "We are in the process of removing non-essential personnel and securing our offshore facilities," the European major said.
Shell is evacuating all staff and shutting in production at its Mars, Olympus, Ursa, Vito, and Appomattox assets as a precaution. Shell has already moved non-essential personnel from its Stones platform.
The storm is headed to an area stretching from Louisiana to the Florida Panhandle that includes several large oil refineries, including Chevron's 356,000 b/d Pascagoula plant, PBF's 190,000 b/d Chalmette refinery, Marathon's 617,000 b/d Garyville refinery and Valero's 125,000 Meraux and 215,000 b/d St Charles facilities.
Power outages and flooding from the storm could effect refinery operations at a time when US refiners are operating at levels above 90pc amid global shortages caused by the US-Iran and Russia-Ukraine wars.
The Gulf of Mexico accounts for around 15pc of total US crude output and 5pc of US natural gas production.
