Sign Up for FREE Daily Energy News
Canadian Flag CDN NEWS  |  US Flag US NEWS  | TIMELY. FOCUSED. RELEVANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • youtube2
BREAKING NEWS:

Copper Tip Energy Services
Vista Projects
Copper Tip Energy
Vista Projects


U.S. offshore oil output to restart after pipeline fix


These translations are done via Google Translate
(Bloomberg) Chevron Corp. is restarting production at three Gulf of Mexico oil fields after a key crude pipeline resumed flows.Multiple offshore platforms were shut in Thursday after a leak at Louisiana booster station halted Shell Plc’s Amberjack and Mars pipelines, which together can move up to 500,000 barrels of oil a day from the Gulf to the coast.

Amberjack, which is jointly owned by Chevron, resumed operations Friday and is flowing at reduced capacity, a Shell spokesperson said. Mars is expected to be up by 4pm central time, according to people familiar with the matter.

Chevron has so far resumed production at its Jack/St. Malo, Tahiti and Big Foot platforms. Other shuttered assets include Shell’s Mars, Ursa and Olympus fields and Equinor ASA’s Titan platform, the companies said. Murphy Oil Corp. also shut some platforms, a spokesperson said.

Entelec Conference and Expo 2024
GLJ
ROO.AI Oil and Gas Field Service Software

If both pipelines return to service on the expected timeline, production losses will be minimal, according to Energy Aspects.

The shut-ins come at a time when global energy supplies are exceedingly tight. While US crude inventories have been cushioned by the government’s tapping of emergency oil reserves, stocks nevertheless remain below the five-year average. Supplies could tighten further, with the International Energy Agency forecasting that oil demand will accelerate this year.

Prices for Mars Blend crude, a regional sour crude benchmark, strengthened Thursday before easing Friday. At the same time, Gulf of Mexico dry-gas production fell about 10%, the most since January, according BloombergNEF estimates based on pipeline flows.

(Adds Amberjack rates. A previous version corrected the Energy Aspects production impact estimate in the fourth paragraph to “barrels” from “barrels a day.”)


Share This:



More News Articles


GET ENERGYNOW’S DAILY EMAIL FOR FREE