U.S. offshore energy producers brace for Hurricane Zeta impact By Reuters

© Reuters. FILE PHOTO: A man rides his bicycle while palm trees sway in the wind as Hurricane Zeta approaches Cancun

By Erwin Seba

HOUSTON (Reuters) – Energy firms and ports along the U.S. Gulf Coast were bracing on Tuesday for another test as Hurricane Zeta, the 11th hurricane of the season, entered the Gulf of Mexico.

BP (NYSE:), Chevron (NYSE:) and Equinor evacuated oil workers and Royal Dutch Shell (LON:) paused drilling as winds intensified to 85 mile-per-hour (136 kph). Pipeline operator Enbridge (NYSE:) evacuated an offshore platform and on Tuesday plans to remove workers from a Louisiana processing plant.

Some oil producers were pulling workers for at least the sixth time since June, a process made more difficult by the novel coronavirus pandemic with workers required to be tested for the virus before returning to work.

Zeta was the third named storm this month to hit Mexico’s Quintana Roo state, forecasters said, setting a new record for the month. On Monday, it became the 11th hurricane of the Atlantic season, which on average has six.

A hurricane watch was issued for parts of Louisiana to the Mississippi-Alabama border by the U.S. National Hurricane Center (NHC). Zeta could hit the U.S. coast on Wednesday at or near hurricane strength, the NHC said.

Energy ports from Baton Rouge to Pascagoula were operating under advisories warning of the potential for gale force winds. A Louisiana deep water oil export port said it was implementing its inclement weather plan.

Energy producers shut 16%, or 293,656 barrels per day (bpd) of oil and 6% of natural gas output, or 162.57 million cubic feet per day, according to data from the U.S. offshore energy regulator.

U.S. Gulf of Mexico offshore oil production accounts for about 17% of total oil output and 5% of total U.S. dry natural gas production.

In early Asia trading, U.S. and futures both gained a fraction after falling more than 3% on Monday over fears of rising COVID-19 cases and increased crude supplies.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function()
{n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘751110881643258’);
fbq(‘track’, ‘PageView’);

by : Reuters

Source link

Capital Media

Read Previous

Trump’s trade war – what was it good for? Not much

Read Next

China’s economic growth seen hitting 44-year low in 2020, bounce 8.4% in 2021: Reuters poll By Reuters