A quarter of U.S. energy output offline as hurricane advances

By Erwin Seba HOUSTON (Reuters) - More than a quarter of U.S. offshore oil and gas production was shut and export ports were closed on Tuesday as Hurricane Sally stalled just off the U.S. Gulf Coast, pelting the region with heavy rains

Reuters September 16, 2020 05:05:09 IST
A quarter of U.S. energy output offline as hurricane advances

A quarter of US energy output offline as hurricane advances

By Erwin Seba

HOUSTON (Reuters) - More than a quarter of U.S. offshore oil and gas production was shut and export ports were closed on Tuesday as Hurricane Sally stalled just off the U.S. Gulf Coast, pelting the region with heavy rains.

Sally weakened on Tuesday to a Category One hurricane with sustained winds of 80 miles per hour (128 kph), moving at a pace that threatened historic and life-threatening flooding from Mississippi to Florida, the U.S. National Hurricane Center said in a late day update https://www.nhc.noaa.gov/text/refresh/MIATCDAT4+shtml/152038.shtml?.

The storm plowed through prime U.S. offshore production areas and was meandering on a path toward Alabama and the Florida Panhandle, sparing New Orleans and some larger Gulf Coast refineries from its winds and rain.

Royal Dutch Shell said it shut its Appomattox oil platform about 80 miles off the coast of Louisiana, joining BP , Chevron Corp and Equinor in closing facilities less than one month after Hurricane Laura knocked about 1.5 million barrels per day of oil offline temporarily.

Nearly 500,000 bpd of offshore crude oil production and 28%, or 759 million cubic feet per day (mmcfd), of natural gas output were shut in the U.S. Gulf of Mexico on Tuesday, according to the U.S. Interior Department.

U.S. crude oil futures rose nearly 3% and gasoline futures climbed 2.3% on Tuesday on the hurricane-related oil production and refinery shut-ins despite demand losses from the COVID-19 pandemic.

The nation's sole offshore terminal, the Louisiana Offshore Oil Port (LOOP), stopped loading tankers on Sunday, while ports from Biloxi, Mississippi, to Pensacola, Florida, were closed. Ports along the Mississippi River began to reopen late Tuesday with restrictions. The closings will cut roughly 307,000 bpd of crude and 411,000 bpd of refined products, according to Kpler data.

As of 4 p.m. CDT (2100 GMT) on Tuesday, Sally was about 85 miles (135 km) south of Mobile, Alabama, and crawling toward the northwest at 2 mph (3 kph). The crawling advance threatened to inundate the region.

Refiners in the region have wound down operations. Phillips 66 shut its Alliance oil refinery, which processes 255,600 bpd at a site along the Mississippi River on the coast of Louisiana.

Shell cut production to minimum rates on Monday at its 227,400-bpd Norco, Louisiana, refinery, but planned to keep a Mobile, Alabama, chemical and refinery plant operating with a skeleton crew.

Murphy Oil Corp said it was beginning to restore production at its eastern-most Gulf of Mexico oil platforms, and oil-giant Equinor said it expected to return workers to its Titan platform on Thursday.

(Reporting by Erwin Seba, Gary McWilliams in Houston and Devika Krishna Kumar in New York; Editing by Marguerita Choy, Jason Neely and Tom Brown)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Turkey's Erdogan, EU's Michel discuss East Med - CNN Turk
World

Turkey's Erdogan, EU's Michel discuss East Med - CNN Turk

ISTANBUL (Reuters) - Turkish President Tayyip Erdogan and European Council President Charles Michel discussed developments in the Eastern Mediterranean on Sunday, CNN Turk reported. NATO allies Turkey and Greece have been locked in a row over hydrocarbon exploration in the sea's disputed waters and the extent of their continental shelves. There was no official confirmation of the talks.

Jump in COVID-19 cases in Britain is 'concerning' - Hancock
World

Jump in COVID-19 cases in Britain is 'concerning' - Hancock

LONDON (Reuters) - The sharp rise in COVID-19 cases in Britain of 2,988 recorded on Sunday, the highest jump since May, was "concerning", Health Secretary Matt Hancock said, although he added that the majority were younger people. "The rise in the number of cases that we've seen today is concerning," he said. "The cases are predominately among younger people, but we've seen in other countries across the world and in Europe this sort of rise in the cases amongst younger people leading to a rise across the population as a whole." He said everybody had to follow social distancing rules to prevent the spread of infections.

Amazon.com bans foreign sales of seeds in U.S. amid mystery packages
Business

Amazon.com bans foreign sales of seeds in U.S. amid mystery packages

(Reuters) - Amazon.com Inc said it has banned foreign sales of seeds in the United States after thousands of Americans received unsolicited packages of seeds in their mailboxes, mostly postmarked from China. The U.S. Department of Agriculture (USDA) in July identified more than a dozen plant species ranging from morning glories to mustard in the bags of unsolicited seeds