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Oil, gas production still shut

17 Sep, 2020 - 00:09 0 Views
Oil, gas production still shut

The Herald

More than a fourth of US Gulf of Mexico offshore oil and gas production remains shut because of Hurricane Sally, which is creeping inland along the Alabama-Florida border, causing life-threatening flooding and cutting fuel demand in the US Southeast.

The storm made landfall near Gulf Shores, Alabama, as a Category 2 hurricane in  yesterday morning. Oil prices rose early yesterday, attributed in part to the expectation of a temporary drop in US production.

Nearly 500 000 barrels per day (bpd) of offshore crude oil production and 759 million cubic feet per day (mmcfd) of natural gas output were shut in the US Gulf of Mexico, according to the US Interior Department.

That is roughly a third of the shut-ins caused by Hurricane Laura, which landed further west in August.

Oil and chemical ports along the Mississippi River were moving to reopen with restrictions, and some offshore operators were preparing to return workers to offshore platforms today.

The hurricane was between Gulf Shores and Pensacola, heading northeast at 5 km per hour, with sustained winds of 160km per hour, the National Hurricane Centre said in an update at 7 am. —

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