NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

UPDATE 4-U.S. Gulf of Mexico oil, gas producers begin restarting after Barry

Published 16/07/2019, 12:58 pm
UPDATE 4-U.S. Gulf of Mexico oil, gas producers begin restarting after Barry
CVX
-
BP
-
SHEL
-
BHP
-
XOM
-
APC
-
NG
-
LNG
-

(Adds BP returning staff, location of storm)

By Erwin Seba

HOUSTON, July 15 (Reuters) - U.S. oil companies on Monday began restoring some of the nearly 74% of production that was shut at U.S. Gulf of Mexico platforms ahead of Hurricane Barry, the U.S. offshore drilling regulator said.

There were 1.3 million barrels per day (bpd) of oil production offline in the U.S.-regulated areas of the Gulf of Mexico on Monday, about 80,000 barrels fewer than on Sunday, according to the U.S. Bureau of Safety and Environmental Enforcement (BSEE).

Workers also were returning to the more than 280 production platforms that had been evacuated. It can take several days for full production to be resumed after a storm leaves the Gulf of Mexico.

Anadarko Petroleum Corp (NYSE:APC) APC.N , BHP Group Ltd BHP.AX , Chevron Corp (NYSE:CVX) CVX.N , Exxon Mobil Corp (NYSE:XOM) XOM.N and Royal Dutch Shell Plc RDSa.L said on Monday they had begun returning staff to evacuated platforms and were in the process of restoring production operations.

"Redeployment and crew-change flights to some of our assets have begun now that weather conditions in the Gulf and onshore have improved," said Shell spokeswoman Cynthia Babski. Three Shell platforms remained shut and a fourth had limited production on Monday, she added.

BP BP.L also has begun returning teams to evacuated facilities, said spokesman Jason Ryan. Production will resume after safety is assured, pipelines and receiving systems are working and regulatory approvals are in place, he said.

Barry came ashore in central Louisiana as a Category 1 hurricane with at least 74-mile-per-hour (119-kph) top sustained winds on Saturday. Late Monday, it was a post-tropical cyclone, and moving north at about 13 mph (20 kmh) into Missouri after dropping up to 4 inches (10 cm) of rain on Arkansas. its arrival, offshore natural gas production in the Gulf of Mexico was down 61%, or 1.7 billion cubic feet per day (cfd), on Monday, BSEE said.

The amount of gas flowing to Cheniere Energy Inc's LNG.A Sabine Pass liquefied natural gas (LNG) export facility in Louisiana rose to a one-week high of 3.7 billion cfd.

Last week, the amount of gas flowing to Sabine fell to a 13-week low of 2.9 billion cfd on Thursday, according to Refinitiv.

Most refineries in southeastern Louisiana kept running through the storm except for Phillips 66's PSX.N 253,600-bpd Alliance, Louisiana, refinery, which the company began restarting on Monday.

The Alliance refinery was shut on Friday because of the threat of flooding and a mandatory evacuation order in Plaquemines Parish, where the refinery is located along the Mississippi River.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.