Oil producers on Aug. 27 have shut-in 59% of U.S. Gulf of Mexico (GoM) crude production as the ninth-named storm of the season barreled toward key U.S. offshore oil fields, according to the Bureau of Safety and Environmental Enforcement (BSEE).
Some 49% of U.S. GoM natural gas production was also shut ahead of the storm, according a report released by BSEE.
Hurricane Ida was about 145 miles from the western tip of Cuba on Aug. 27 and moving toward the GoM at about 15 miles (24 km) per hour. With winds of 75 mph, it is expected to become a major hurricane and strike the Louisiana coast over the weekend, according to the National Hurricane Center.
The U.S. GoM accounts for roughly 17% of the nation’s oil production, totaling about 1.7 MMbbl/d, and 5% of its dry gas production, according to the U.S. Energy Information Administration.
Oil and gas companies had also evacuated 89 platforms and one rig in preparation for the storm. They also moved 11 drill vessels out of harm’s way by midday Aug. 27.
U.S. crude prices settled 2% higher on Friday at $68.74 a barrel due to supply fears surrounding the storm.
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