Hurricane Knocks Out 42% Of US Gulf Of Mexico Oil Output
October 10, 2018
Hurricane Michael on Oct. 10 cut 42% of U.S. Gulf of Mexico (GoM) daily crude oil production and nearly one-third of natural gas output, the largest reductions in a year, after companies evacuated staff and shut-in platforms as a precaution.
Michael slammed into the Florida Panhandle on Oct. 10 as a fast-moving, Category 4 storm bringing heavy rains and winds of 155 miles per hour (249 kph) to the U.S. southeast.
Companies turned off daily production of 718,877 barrels of oil and 812 million cubic feet of natural gas by midday on Oct. 10, according to the federal offshore regulator, the Bureau of Safety and Environmental Enforcement (BSEE).
Despite the fall in output, U.S. crude futures settled down more than 2% at $73.17 per barrel on Oct. 10, tracking the weaker U.S. stock market and reflecting the declining importance of Gulf of Mexico output due to burgeoning growth from onshore shale fields.
The cuts Oct. 10 represent about 6.5% of the nation's daily output of 11.1 million barrels (MMbbl) of crude. It is the most since Hurricane Nate a year ago curtailed more than 90% of GoM oil production.
Read entire article at E&P.
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