• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Reality catching up with EV forecasts
  • 3 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 13 days US Oil Independence is a myth and will always be a myth
  • 9 days The Federal Reserve and Money...Aspects which are not widely known
  • 13 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 16 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 17 days *****5 STARS - "The Markets are Rigged" by The Corbett Report
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.

ADVERTISEMENT

“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.

ADVERTISEMENT

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


ADVERTISEMENT


ADVERTISEMENT



Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News