• 6 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes Saudis Pull Hyperloop Funding As Branson Temporarily Cuts Ties With The Kingdom
  • 58 mins WTI @ $75.75, headed for $64 - 67
  • 33 mins Trump vs. MbS
  • 1 hour Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 5 hours The Dirt on Clean Electric Cars
  • 12 hours Uber IPO Proposals Value Company at $120 Billion
  • 3 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 1 hour EU to Splash Billions on Battery Factories
  • 19 hours UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
  • 16 hours COLORADO FOCUS: Stocks to Watch Prior to Midterms
  • 6 hours Coal remains a major source of power in Europe.
  • 3 hours Poland signs 20-year deal on U.S. LNG supplies
  • 13 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 15 hours Nopec Sherman act legislation
Oil Prices Under Pressure As U.S. Shale Supply Soars

Oil Prices Under Pressure As U.S. Shale Supply Soars

Continued production growth in the…

Elon Musk Plans First Commercial Flights To Mars

Elon Musk Plans First Commercial Flights To Mars

Despite the headwinds he faced…

Over 1 Million Bpd Remain Offline In Gulf Of Mexico

Gulf of Mexico rig

Both WTI and Brent benchmarks were up on Tuesday as about 58 percent of U.S. Gulf of Mexico crude oil production is still offline, according to the Bureau of Safety and Environmental Enforcement (BSEE) in its Tuesday update on Tropical Storm Nate.

That 58 percent still offline equates to 1.024 million barrels of oil per day.

Roughly half of the Gulf’s natural gas production remains offline as well, according to the BSEE, or 1485 million cubic feet per day.

“Based on data from offshore operator reports submitted as of 11:30 CDT today, personnel remain evacuated from a total of 66 production platforms, which is 9 percent of the 737 manned platforms in the Gulf of Mexico,” the BSEE said in today’s release.

On Sunday, the BSEE reported that more than 92 percent of Gulf of Mexico’s oil production in the U.S. was taken out by Tropical Storm Nate.

The evacuations and preparations to shut down oil platforms in the Gulf of Mexico came well ahead of the tropic storm when it was still wreaking havoc in Costa Rica and Nicaragua. Among the first to brace for Nate were Royal Dutch Shell (NYSE: RDS.A), ExxonMobil (NYSE: XOM), BP (NYSE: BP), and Anadarko (NYSE: APC).

Related: Aggressive OPEC Pushes Oil Prices Up

The area hit by the storm is particularly heavily populated with oil rigs, and is responsible for producing 1.6 million barrels of oil daily—a figure which accounts for more than 17 percent of all U.S. crude oil production.

Refineries were also affected by the Tropical Storm, with Shell cutting production at its 225,800-bpd Norco refinery in Louisiana.

Nate is the second major storm in as many months to hit the Gulf of Mexico and disrupt oil production and refining, with Hurricane Harvey the first of this year’s major disruptors to U.S. oil industry.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

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