Storm Threat Prompts Oil Companies to Evacuate Some Gulf Staff

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Energy companies began evacuating non-essential personnel from operations in Gulf of Mexico on Friday due to the threat of a weather system in the region developing into a tropical cyclone.

Anadarko Petroleum Corp. and Murphy Oil Corp. said they were removing non-essential workers from the offshore region, but added production had not been affected. Murphy operates three oil and gas platforms in the Gulf, while Anadarko operates eight.

The Louisiana Offshore Oil Port, the only U.S. port capable of offloading foreign crude from giant Ultra Large Crude Carriers and Very Large Crude Carriers, said it was removing non-essential workers from operations about 20 miles (32 km) offshore but that operations were normal.

“We’re offloading ships as we speak,” spokesman Barb Hesterman said. “We have some maintenance work going on that we’d brought people in for.”

Shell said it may evacuate workers not associated with producing and drilling activities, and that some weather-sensitive activities such as construction and painting could be delayed or shut down.

The U.S. National Hurricane Center said a low pressure system in the Gulf of Mexico, home to 20 percent of U.S. oil production and 6 percent of natural output, had a 70 percent chance of developing into a tropical cyclone over the next two days.

Royal Dutch Shell, one of the largest oil and gas producers in the Gulf, was monitoring the system, “and will take appropriate steps as circumstances warrant,” spokesman Bill Tanner said.

Energy markets have traditionally kept a sharp watch on storms passing through the region, especially after the destruction caused by Hurricanes Katrina and Rita to offshore facilities and refineries along the Gulf Coast in 2005.

The risk to markets has diminished slightly in recent years, as the development of shale deposits caused a boom in onshore production of both natural gas and oil.

Still, concerns about the potential storm — which would be called Debby if it develops — helped bolster U.S. natural gas and oil prices on Friday.