2 hrs ago
Hurricane Isaias Shuts Nearly Three-Quarters of Gulf Oil Output
Hurricane Isaias was approaching the US Gulf Coast, so oil companies stopped much of their offshore production.
About 72% of the region’s oil output was shut in.
Workers left 129 platforms, and two rigs moved away from the storm.
BP also stopped production at two platforms and evacuated workers there.
The storm disrupted oil supplies while the Iran war was already making oil shipments take longer.
Tankers were tied up, and shipping US oil to Asia became very expensive.
That high cost may make it harder to sell US oil abroad.
The production shutdown could therefore limit the buildup of oil that might otherwise struggle to find buyers.
Producers halted about 1.46 million barrels per day, or 72% of regional Gulf oil production.
As of Friday at noon ET, workers had evacuated 129 platforms and two rigs moved out of the storm’s path.
BP shut production and evacuated workers from its Thunder Horse and Na Kika platforms, while removing nonessential personnel from three others.
The storm’s offshore supply disruption comes as the Iran war has upended global oil trade routes and tied up tankers.
Shipping a very large crude carrier of US oil to Asia costs about $79 million, or roughly $39.50 per barrel.
- Who
- Oil producers in the US Gulf, including BP.
- What
- They shut in about 1.46 million barrels per day of regional oil production as Hurricane Isaias approached.
- Where
- The US Gulf and US Gulf Coast.
- When
- Friday; the reported platform evacuations were counted as of 12 p.m. ET.
- Why
- Companies were responding to the approaching hurricane; shipping disruptions and high freight costs were also weighing on demand for US crude exports.
Key facts
- Production shut in
- About 1.46 million barrels per day
- Share of regional output shut in
- 72%
- Platforms evacuated
- 129 as of 12 p.m. ET Friday
- Rigs moved
- Two dynamically positioned rigs
- BP platforms evacuated
- Thunder Horse and Na Kika
- US-to-Asia tanker cost
- About $79 million for a very large crude carrier
- Estimated freight cost per barrel
- Roughly $39.50 for a 2 million-barrel cargo
Sources
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