In anticipation of a late hurricane season storm menacing offshore fields in the US Gulf of Mexico, oil and gas producers took a series of actions on Tuesday. They began shutting down output and evacuating workers from platforms.
The US National Hurricane Center cautioned about the possibility of steady to rapid intensification within the next 24 to 36 hours, with Tropical Storm Rafael expected to escalate into a Category 1 hurricane by early Wednesday.
Researchers estimated that producers could face losses ranging from 3.1 million to 4.9 million barrels of oil and 4.56 billion to 6.39 billion cubic feet of natural gas.
Due to concerns over the storm, US oil futures climbed approximately 1% on Tuesday, reaching $72.10 per barrel.
Major producers such as Chevron CVX.N, which operates multiple production platforms including Anchor, Blind Faith, Jack/St. Malo, Tahiti, Petronius, and Big Foot, halted offshore production and evacuated personnel. Norway’s Equinor EQNR.OL shut in production at its Titan oil platform and aimed to complete a full evacuation by the end of the day. BP BP.L secured offshore facilities and removed some offshore oil production workers from its Argos, Atlantis, Mad Dog, Na Kika, and Thunder Horse facilities. Shell SHEL.L paused drilling operations and started withdrawing some staff from its Appomattox, Vito, Mars and other production facilities on Monday in preparation for the storm’s potential impact. Occidental Petroleum OXY.N was monitoring the weather and had contingency plans ready to implement as required.
Moreover, the port of Freeport in south Texas closed to inbound vessel traffic because of the offshore conditions prior to Rafael, as per a notice from a shipping agency.
Oil and Gas Producers Take Precautionary Measures in US Gulf of Mexico Ahead of Approaching Storm