• 5 minutes Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 8 minutes China Faces Economic Collapse
  • 12 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 14 minutes Iran in the world market
  • 17 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 4 hours Experts review drone damage . Say Saudis need to do a lot of explaining.
  • 32 mins Saudis Confirm a Cruise Missile from Iranian Origin
  • 16 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 16 hours Collateral Damage: Saudi Disruption Leaves Canada's Biggest Refinery Vulnerable
  • 12 hours USA Wants Iran War -- Shooty Shooty More
  • 13 hours The Spy Money: U.S. Wants To Seize All Money Edward Snowden Makes From New Book
  • 5 hours Aramco Production
  • 2 hours Let's shut down dissent like The Conversation in Australia
  • 19 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 9 hours Trump Will Win In 2020 And Beyond..?
  • 10 hours The Belt & Road Initiative: A Wolf in Sheep's Clothing?
Alt Text

Oil Demand Growth Weakest In Nearly A Decade

Global oil demand continues to…

Alt Text

Is It Time To Invest In Offshore Drillers?

Following an “absolutely horrible year,”…

Alt Text

Big Oil Is Down, But Not Out

Activist divestment and climate change…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Storm Gordon Cuts Gulf Of Mexico Oil Production By 160,000 Bpd

A total 48 offshore platforms in the Gulf of Mexico were evacuated because of Hurricane Gordon as of Wednesday, with almost 160,000 bpd of crude oil production shut in along with a little over 266 million cu ft of gas production, the Bureau of Safety and Environmental Enforcement said in its daily update on developments in the area. The data was based on platform operator reports submitted on Tuesday, when Gordon was expected to make landfall.

The shut-in production represents less than one-tenth of GOM’s total daily oil output, and price movements reflected the relative insignificance of the shut-ins, with West Texas Intermediate closing at almost a week’s low yesterday, at US$68.72 a barrel, down 1.7 percent.

“Gordon largely turned out to be a non-event for the energy market, and if anything, the sell-the-news aspect of the tropics trade has triggered a profit-taking pullback across the space,” MarketWatch quoted the co-editor of the Sevens Report, Tyler Richey as saying.

Unlike the 2017 hurricane season that caused serious production outages in the Gulf of Mexico and at Gulf Coast refineries, this year’s hurricanes are thought to be fewer and weaker. Colorado State University recently revised its forecast for the number of named storms this season to 11 from 14, as per a Bloomberg report from July. Related: Are Oil & Gas Executives Paid Based On Luck?

Separately, meteorologists from AccuWeather predicted the formation of an El Nino in August, which will reduce the likelihood of tropical storm formation. AccuWeather expects between 10 and 12 named storms this season, and between 2 and 4 major hurricanes. Colorado State University expects just one storm to develop into a major hurricane.

With 20 percent of U.S. crude production capacity and 45 percent of refining capacity in the Gulf of Mexico, storm forecasts are important for oil traders—bulls and bears alike. Last year storm losses hit US$200 billion, the highest storm bill in history, with three major hurricanes—Harvey, Irma, and Maria—pummeling the Gulf of Mexico.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play