Oil Companies Halt Gulf of Mexico Offshore Output Ahead of Storms
August 22 2020 - 4:31PM
Dow Jones News
By Dan Molinski
Oil and gas companies operating offshore in the Gulf of Mexico
were evacuating workers and halting production Saturday as two
tropical storms that could become hurricanes head toward the
region.
Due to storm preparations and evacuations, total daily offshore
crude-oil production in the Gulf of Mexico has been reduced by 13%,
or 241,000 barrels, while natural gas production was cut by 4%, or
119 million cubic feet, the U.S. government's Bureau of Safety and
Environmental Enforcement said in a statement Saturday. Those
percentages are expected to rise in the coming days.
Tropical Storm Marco was bringing heavy rain and wind to Cuba
and Mexico's Yucatan Peninsula on Saturday. The National Hurricane
Center said Marco was likely to strengthen and become a hurricane
later Saturday, but might weaken again Sunday as it moves into the
Gulf of Mexico en route toward Texas and Louisiana.
Meanwhile, the center of Tropical Storm Laura was over Puerto
Rico Saturday and could impact other Caribbean islands this weekend
before moving into the Gulf of Mexico near the tip of Florida
around the end of the weekend, the NHC said.
Royal Dutch Shell PLC said in a statement Saturday it was
monitoring both Laura and Marco. "As a precautionary measure, Shell
is evacuating personnel and safely shutting in production at the
majority of our assets in the Gulf of Mexico," the company said.
"Drilling operations have been safely paused as well."
BP PLC was taking similar action. "BP has begun securing
offshore facilities and has begun the process of evacuating
personnel from its platforms and drilling rigs," it said Friday.
"BP is also beginning to shut-in production at its four operated
platforms in the Gulf of Mexico. Safety is our top priority."
Write to Dan Molinski at dan.molinski@wsj.com
(END) Dow Jones Newswires
August 22, 2020 16:16 ET (20:16 GMT)
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