U.S. Gulf of Mexico (GoM) producers have cut oil output by 32% and natural gas production by 18% as a result of the lingering effects of Hurricane Michael, the Bureau of Safety and Environmental Enforcement (BSEE) said Oct. 12, citing reports from 27 companies.
The reductions continued as oil and gas companies moved more workers back to production platforms that were evacuated earlier in the week. As of the morning of Oct. 12, nine platforms were still unoccupied, BSEE said in a daily update, down from 89 platforms on Oct. 10.
It can take several days after a storm passes to inspect platforms, return crews and restore production after a shut-in.
Anadarko Petroleum Corp. (NYSE: APC) said on Oct. 12 it had finished inspecting its platforms and “anticipated restarting production as soon as third-party infrastructure allows.” The company had shut-in its Horn Mountain, Marco Polo and Marlin platforms as a safety measure.
BHP Billiton (NYSE: BHP), BP Plc (NYSE: BP), Chevron Corp. (NYSE: CVX), Equinor and Exxon Mobil Corp. (NYSE: XOM) earlier reported they had returned crews and were in the process of restarting offshore facilities.
The cuts represent 550,313 barrels per day of oil production and 476 million cubic feet per day of natural gas output, BSEE said. In all, Gulf producers have lost about 2.94 million barrels of oil production this week.
The reductions stem from well shut-ins made in advance of the Category 4 hurricane, which drove through the GoM this week, producing rough seas and winds of up to 155 miles per hour (250 kph).
Recommended Reading
Texas LNG Export Plant Signs Additional Offtake Deal With EQT
2024-04-23 - Glenfarne Group LLC's proposed Texas LNG export plant in Brownsville has signed an additional tolling agreement with EQT Corp. to provide natural gas liquefaction services of an additional 1.5 mtpa over 20 years.
US Refiners to Face Tighter Heavy Spreads this Summer TPH
2024-04-22 - Tudor, Pickering, Holt and Co. (TPH) expects fairly tight heavy crude discounts in the U.S. this summer and beyond owing to lower imports of Canadian, Mexican and Venezuelan crudes.
What's Affecting Oil Prices This Week? (April 22, 2024)
2024-04-22 - Stratas Advisors predict that despite geopolitical tensions, the oil supply will not be disrupted, even with the U.S. House of Representatives inserting sanctions on Iran’s oil exports.
Association: Monthly Texas Upstream Jobs Show Most Growth in Decade
2024-04-22 - Since the COVID-19 pandemic, the oil and gas industry has added 39,500 upstream jobs in Texas, with take home pay averaging $124,000 in 2023.
Shipping Industry Urges UN to Protect Vessels After Iran Seizure
2024-04-19 - Merchant ships and seafarers are increasingly in peril at sea as attacks escalate in the Middle East.