Oil companies cut U.S. Gulf of Mexico output by 91% ahead of Hurricane Ida

Oil firms cut U.S. Gulf of Mexico output by 91% ahead of Hurricane Ida

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Oil companies on Saturday cut almost 91% of U.S. Gulf of Mexico petroleum production, approximately 1.65 million barrels, as Hurricane Ida makes its method towards significant U.S. overseas oilfields, according to the Bureau of Safety and Environmental Enforcement.

The regulator likewise approximated that approximately 84.87% of gas production in the Gulf of Mexico has actually been shut in.

Ida is anticipated to reach a Category 4 cyclone prior to making landfall west of NewOrleans Louisiana locals on Saturday hurried to get ready for the storm, which might bring winds as high as 140 miles per hour (225 kph) when it makes landfall.

Oil and gas business left 279 production platforms, representing 49.82% of the 560 manned platforms in the Gulf of Mexico, and shut in practically 91% of their common overseas production as the storm approached, according to the overseas regulator.

The business likewise moved 11 drill vessels off area and out of the storm’s course on Saturday.

The Gulf of Mexico federal overseas oil production represent 17% of the nation’s petroleum production and 5% of its federal overseas dry gas production, according to the U.S. Energy Information Administration.

Andrew Lipow, president of Lipow Oil Associates in Houston, stated Saturday that if the New Orleans refineries take a direct hit from a Category 4 storm, gas rates would likely increase by about 10 cents a gallon in the Southeastern and Mid-Atlantic markets.