Oil firms cut U.S. Gulf of Mexico output by 59% ahead of Ida

Print 🖨

Aug 27 (Reuters) – Energy companies on Friday cut 59% of U.S. Gulf of Mexico crude oil production, or 1.64 million barrels, as the ninth-named storm of the hurricane season barreled toward the key U.S. offshore oilfields, according to the Bureau of Safety and Environmental Enforcement (BSEE).

Hurricane Ida was off the western tip of Cuba on Friday and moving toward the Gulf of Mexico at about 15 miles (24 km) per hour (mph). It is expected to become a major hurricane over the weekend and strike the U.S. Gulf Coast, according to National Hurricane Center forecasts.

Oil and gas companies evacuated 89 platforms and one rig in preparation, shutting in production ahead of the storm’s arrival They also moved 11 drill vessels out of harm’s way by midday Friday, the offshore regulator said.

Energy producers also cut 1.09 million cubic feet of natural gas production, or 49% of their output, according to the BSEE.

ROO.AI Oil and Gas Field Service Software

The U.S. Gulf of Mexico accounts for roughly 17% of the nation’s oil production and 5% of its dry gas production, according to the U.S. Energy Information Administration.

U.S. crude prices settled 2% higher on Friday at $68.74 a barrel due to supply fears surrounding the storm.