[Editor’s note: This story was updated from a previous version posted 2:47 p.m. CT Sept. 18.]
Royal Dutch Shell Plc halted some oil production and began evacuating workers from a U.S. Gulf of Mexico (GoM) platform, the company said on Sept. 19, as a new tropical storm flared.
Beta, the 23rd named storm of the Atlantic hurricane season, formed in the Bay of Campeche and was forecast to gradually strengthen and soak the Texas coast all week, the National Hurricane Center (NHC) said.
The storm swirled even as oil and gas producers were restarting their offshore operations. Some 17% of U.S. GoM offshore oil production and nearly 13% of natural gas output was offline on Sept. 19 from Hurricane Sally's waves and winds.
The NHC reduced its maximum wind forecast to 75 mph (120 kph), just above tropical storm intensity. Drier air aloft will limit Beta's strength and may prevent it from becoming a hurricane, the NHC said in a Sept. 19 update.
Shell said it was removing non-essential employees from its Perdido platform in the western GoM and securing nearby drilling rigs. Occidental Petroleum Corp., which operates in the same area, said it also began implementing storm procedures.
BP Plc, Hess Corp. and Murphy Oil Corp. were monitoring conditions on Sept. 19, spokespeople for the companies said.
Beta churned about 245 miles (395 km) south of Lake Charles, La., with 60 mph winds at 1 p.m. CDT (18 GMT), the NHC said. It issued a hurricane watch for most of the Texas coast and warned of up to 10 inches (25 cm) of rain along the northwest Gulf coast from the slow moving storm.
If Beta reaches hurricane strength, with maximum winds greater than 74 mph on the Saffir-Simpson scale, it would be the third GoM hurricane in less than a month. Hurricane Sally slammed into Alabama on Sept. 16 with winds of up to 105 mph (170 kph) and Laura hit southwest Louisiana with 150 mph winds.
There were 24 platforms awaiting the return of work crews on Sept. 19, down from 149 earlier in the week. Some 323,000 barrels of oil and 339 million cubic feet of natural gas output remained offline by GoM producers that had shut output ahead of Hurricane Sally, the U.S. Department of Interior said.
The U.S. GoM offshore oil production accounts for 17% of U.S. crude oil production and 5% of U.S. natural gas production.
Energy industry leaders say technology and standardization are critical to lowering costs and improving efficiency offshore.
Upstream activity will fuel the region as a leader on the road to recovery.
The measures combined are worth between C$81 million ($61.4 million) and C$84 million in the first year, government spokesman Justin Marshall said.