Chevron Halts Output at Two Offshore Facilities Ahead of Hurricane -- Update
September 26 2022 - 2:30PM
Dow Jones News
By Dan Molinski
Chevron Corp. said Monday it was moving workers to safety and
halting production temporarily at a pair of offshore production
platforms in the Gulf of Mexico as it prepares for Hurricane
Ian.
"We have begun transporting all personnel from our Petronius and
Blind Faith platforms and are shutting-in the facilities," Chevron
said in an emailed statement. Chevron added, however, that all of
its other production from Chevron-operated Gulf of Mexico assets
"remains at normal levels."
Shell, another offshore producer, said it also was keeping a
close eye on the storm. "We are closely monitoring Hurricane Ian,"
the company said in an emailed statement. "As of today, there have
been no impacts to Shell operations in the Gulf of Mexico."
Hurricane Ian is currently located in the Caribbean Sea and is
expected to head northward and make landfall in western Cuba on
Tuesday before continuing north and slightly east and making
landfall somewhere along the western coast of Florida on
Wednesday.
If it does touch down in Florida, Hurricane Ian would become the
first hurricane of the 2022 Atlantic hurricane season to make
landfall on the U.S. mainland.
As the storm continues to develop, Tom Kloza at Oil Price
Information Service said more offshore oil shut-ins are
possible.
"It looks like the storm has moved a bit westward and my sense
is that track takes it closer to some offshore rigs," Kloza said. "
Probably won't lose any, but precautionary shutdowns can have an
impact."
The two Chevron platforms halting output can produce around
120,000 barrels a day of oil combined, though actual daily
production can be lower than that. Total offshore oil production in
the Gulf of Mexico is about 1.8 million barrels a day, which
accounts for about 16% of total U.S. production of 11 million
barrels a day.
Offshore natural gas production is about 5% of total U.S.
production, according to the U.S. government's Energy Information
Administration.
Write to Dan Molinski at dan.molinski@wsj.com
(END) Dow Jones Newswires
September 26, 2022 14:15 ET (18:15 GMT)
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