Energy firms and ports along the U.S. Gulf Coast prepared on Oct. 27 for another test as Hurricane Zeta, the 11th hurricane of the season, entered the Gulf of Mexico (GoM).
BP Plc, Chevron Corp. and Royal Dutch Shell Plc, among others, evacuated 157 offshore facilities and sharply cut production from the offshore region. Pipeline operator Enbridge Inc. evacuated two platforms and removed workers from a Louisiana natural gas processing plant.
Some oil producers were pulling staff for at least the sixth time since June, a process made more difficult by the COVID-19 pandemic with workers required to be tested for the virus before returning to work.
Energy producers on Oct. 27 shut nearly half the region's oil output, or 914,811 bbl/d, and 1.5 Bcf/d, or more than half its natural gas output, the U.S. offshore energy regulator said.
U.S. GoM offshore oil production accounts for about 17% of total U.S. crude oil output and 5% of total U.S. dry natural gas production.
Zeta's winds decreased to 65 mph (100 kph) after sweeping across the Yucatan Peninsula early Oct. 27 but are forecast to restrengthen to 85 mph as its churns over the central GoM, the U.S. National Hurricane Center (NHC) said in a mid-day update.
On Oct. 26, it became the 11th hurricane of the Atlantic season, which on average has six.
A hurricane watch was issued for parts of Louisiana to the Mississippi-Alabama border by the NHC. Zeta could hit the U.S. coast on Oct. 28 at or near hurricane strength, the NHC said.
Energy ports from Baton Rouge to Pascagoula were operating under advisories warning of the potential for gale force winds. A Louisiana deepwater oil export port said it was implementing its inclement weather plan.
U.S. crude futures gained 1.8% in Oct. 27 trading after falling more than 3% on Oct. 26 over fears of rising COVID-19 cases and increased crude supplies.
Recommended Reading
Diamondback to Sell $2.2B in Shares Held by Endeavor Stockholders
2024-09-20 - Diamondback Energy, which closed its $26 billion merger with Endeavor Energy Resources on Sept. 13, said the gross proceeds from the share’s sale will be approximately $2.2 billion.
Optimizing Direct Air Capture Similar to Recovering Spilled Wine
2024-09-20 - Direct air capture technologies are technically and financially challenging, but efforts are underway to change that.
Analyst: Is Jerry Jones Making a Run to Take Comstock Private?
2024-09-20 - After buying more than 13.4 million Comstock shares in August, analysts wonder if Dallas Cowboys owner Jerry Jones might split the tackles and run downhill toward a go-private buyout of the Haynesville Shale gas producer.
Matador Offers $750 Million in Senior Notes Following Ameredev Deal
2024-09-20 - Matador Resources will offer $750 million in senior notes following the close of its $1.83 billion Ameredev II acquisition.
Aethon, Murphy Refinance Debt as Fed Slashes Interest Rates
2024-09-20 - The E&Ps expect to issue new notes toward redeeming a combined $1.6 billion of existing debt, while the debt-pricing guide—the Fed funds rate—was cut on Sept. 18 from 5.5% to 5%.