As Storm Forms in Gulf of Mexico, U.S. Oil Producers Shut Offshore Output

July 10, 2019

U.S. oil prices have climbed 3% as more major oil producers shut production and withdrew staff from offshore platforms in the U.S. Gulf of Mexico, as a storm threatened oil-producing areas.

Anadarko Petroleum Corp., the third largest producer in the Gulf of Mexico, said it is stopping production and removing all workers from four central Gulf facilities, the Constitution, Heidelberg, Holstein and Marco Polo platforms. It is also evacuating nonessential staff from its eastern Gulf platforms.

A low-pressure system moving westward across the northern U.S. Gulf could form a tropical depression late Wednesday or Thursday, with the potential to produce a storm surge from Louisiana to the upper Texas coast, according to the National Hurricane Center.

Chevron Corp, Royal Dutch Shell Plc, BP Plc and BHP Group Ltd were removing staff from 15 offshore energy platforms, according to company statements. Exxon Mobil Corp was “closely monitoring” the weather disturbance to determine whether its facilities may be affected, a spokeswoman said.

U.S. crude futures rose $1.77, or 3%, to $59.60 a barrel in early Wednesday trade.

(Reporting by Collin Eaton in Houston; Editing by Jonathan Oatis and Jeffrey Benkoe)

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