• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 3 hours Why is Strait of Hormuz the World's Most Important Oil Artery
  • 3 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 16 hours Another surprise 'build'
  • 18 hours Struggle For Supremacy: Kremlin Condemns Alleged U.S. Ultimatum To Turkey Over Missile Deal
  • 12 hours Apple Bid To Buy Tesla in 2013 For $240 a Share
  • 15 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 16 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 3 hours California's Oil Industry Collapses Despite Shale Boom
  • 23 hours Solar Cheaper than Coal
  • 15 hours IMO2020 To scrub or not to scrub
  • 15 hours IMO 2020 could create fierce competition for scarce water resources
  • 1 day Crude oil?
  • 3 hours Some Good News on Climate Change Maybe
No, The Oil Glut Hasn’t Disappeared

No, The Oil Glut Hasn’t Disappeared

Weaker than expected oil demand…

GOM Oil And Gas Production Rebounds After Michael

oil jack up rig

Oil and gas production in the Gulf of Mexico has started recovering after hurricane Michael, the Bureau of Safety and Environmental Enforcement said. With evacuated personnel now back to all 687 manned platforms in the Gulf, the production decline that followed the hurricane’s passage through the area is beginning to be reversed.

Still, the BSEE said, 15.8 percent of oil production capacity remains shut in for the time being. That’s equal to 268,824 bpd. In natural gas, 8.9 percent of capacity remains shut in, equal to 227 million cu ft per day.

The hurricane shut in more than 40 percent of oil production capacity in the Gulf of Mexico, according to data from the BSEE from last week, as well as almost 32 percent of gas production capacity.

A total of 89 platforms were evacuated by the time Michael made landfall last Wednesday in Florida, as well as seven drilling rigs, with shut-in production totaling almost 718,900 bpd. Some 813 million cubic feet of natural gas production has also been taken offline this week.

Despite the high portion of shut-in capacity in the Gulf, the developments did not have a significant effect on prices: most of U.S. production comes from onshore reserves, so the 40 percent of GOM capacity not producing last week represents just 6 percent of the total national production capacity.

Also, it was clear from the start the shut-in would be temporary, so there was no time for traders to start worrying about a possible supply shortage in the wake of the hurricane, which has become the third-strongest storm in U.S. history.

As of this Sunday, more than 435,000 people and households across seven states were without power, CNN reports, and 30-35 are still unaccounted for in the area of Mexico Beach, the part of Florida that suffered the greatest damage from the storm.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News