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Gulf Oil Output Cut 63% as Hurricane Isaias Nears Landfall

Oil producers in the Gulf of Mexico have shut in nearly 1.3 million barrels per day ahead of Hurricane Isaias. That is about 63 per cent of the region’s production.

The US Marine Minerals Administration shared the figures on Friday. Operators are evacuating rigs and platforms as the storm approaches.

Natural gas production is also hit. About 1,127 million cubic feet per day, or 57 per cent of Gulf output, has been shut in.

Personnel have been evacuated from 121 production platforms. That is roughly one-third of the manned platforms in the Gulf.

Shutting in means closing safety valves below the ocean floor to prevent oil or gas from escaping.

Gulf storms often cause short-term supply disruptions. Markets were already watching crude prices after they fell on hopes of progress in US-Iran talks.

The shut-ins will show up in weekly US production data. Analysts expect a temporary dip followed by a quick restart once the storm passes.

Refineries along the Gulf Coast are also preparing. Storm surge and flooding can disrupt fuel supplies even after the wind dies down.

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