• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 17 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days The United States produced more crude oil than any nation, at any time.
  • 6 days How Far Have We Really Gotten With Alternative Energy
  • 12 hours e-truck insanity
  • 6 days China deletes leaked stats showing plunging birth rate for 2023
  • 8 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 5 days Bad news for e-cars keeps coming
Bank Sees U.S. Shale Growing for Another 4 Years

Bank Sees U.S. Shale Growing for Another 4 Years

U.S. shale oil production has…

Renewable Energy Projects Stalled by Transformer Shortage in the U.S.

Renewable Energy Projects Stalled by Transformer Shortage in the U.S.

Renewable energy presents challenges and…

28 Percent Of Gulf Of Mexico Oil Production Still Offline Following Ida

Crude oil production in the United States had fallen sharply over the last two weeks in the wake of Hurricane Ida, but production for the next reporting period is on track to be down as well, as 28% of all crude oil production in the Gulf of Mexico still remains shut-in after the hurricane.

Meanwhile, WTI prices have risen from $69.21 per barrel as the hurricane hit, to $72.62 today—a nearly 5% rise.

Initially, the hurricane wiped out nearly all of the oil production in the Gulf of Mexico. Today—weeks later—28.24% of Gulf of Mexico oil production is still shut in, according to BSEE, along with 39.4% of all gas production on the Gulf. 

For oil, this is still more than 500,000 bpd shut in.

According to the EIA, US oil production fell from 11.5 million bpd before the hurricane to 10 million bpd for week ending September 3. Production rose a mere 100,000 bpd in the next week, ending September 10. But the next reporting period, which ends tomorrow, will also be depressed, with half a million barrels per day still offline as of Thursday.

As for when production should be back in full swing, the Energy Department anticipates that this won’t be until October—with refinery resumption taking even longer.

The supply problems are creating upward pressure on oil prices, which until very recently were concerned more with demand problems due to the coronavirus pandemic—and this fear of a lack of demand has dogged oil prices for over a year.

It seems, however, that Hurricane Ida has cured that problem for the industry—at least for now.

ADVERTISEMENT

According to the IEA, oil supplies won’t be high enough until early next year to replenish what has recently been depleted.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



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