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Julianne Geiger is a veteran energy journalist and market analyst with more than a decade of experience covering the global oil and gas sector. Her…
Hurricane Isaias has now knocked nearly 1.46 million barrels per day of U.S. Gulf oil production offline, extending a rapid shutdown that began with just 185,120 bpd three days ago.
The Marine Minerals Administration said Friday that operators had shut in 1,458,814 bpd, or 71.51% of current Gulf oil production, along with 1.26 billion cubic feet per day of natural gas, or 58.84% of Gulf gas output.
That is another 176,000 bpd of oil production lost since Thursday, when the agency reported 1.28 million bpd offline.
Operators have now evacuated 129 production platforms, representing nearly 35% of the 371 manned platforms in the Gulf. Eight of 11 non-dynamically positioned drilling rigs have also been evacuated, while two of 17 dynamically positioned rigs have moved out of the storm’s path.
On Tuesday, before Isaias developed into a hurricane, operators had evacuated no platforms or rigs and just 9.24% of Gulf oil production was offline. By Thursday, the shut-in share had jumped to 62.89%. Friday’s figure puts more than seven out of every ten barrels normally produced in the Gulf temporarily out of the market.
Production losses do not necessarily translate into lasting supply losses. Offshore operators routinely shut wells and evacuate personnel ahead of hurricanes, then inspect facilities and restart production after the storm passes.
Undamaged platforms can return relatively quickly once safety inspections are completed. Damage to platforms, subsea equipment, pipelines or onshore infrastructure can stretch outages considerably longer.
The Gulf shutdown is landing in an oil market already short on comfortable supply cushions after months of disruptions in the Middle East and falling inventories.
For now, another 176,000 bpd disappeared from U.S. production between Thursday and Friday, bringing the three-day Gulf shutdown from 185,120 bpd to nearly 1.46 million bpd.
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