Hurricane Francine Affects Gulf of Mexico Oil and Gas Production

HOUSTON (Reuters) – Nearly 30% of U.S. Gulf of Mexico crude oil production and 41% of its natural gas production remained offline on Saturday following Hurricane Francine, the U.S. offshore energy regulator stated.

Francine stirred through primary oil and gas producing regions in the U.S. Gulf of Mexico, hitting Louisiana with winds up to 100 miles per hour (161 kph). The midweek storm caused widespread destruction, toppling trees, flooding coastal areas, and disrupting power across four states. As of Saturday, around 37,000 customers in Louisiana were still without power.

A survey conducted by the Bureau of Safety and Environmental Enforcement (BSEE) revealed that over 522,000 barrels of oil production and 755 million cubic feet of natural gas remained offline. Cumulative production losses this week due to Francine reached 1.82 million barrels of crude oil and 4.12 billion cubic feet of natural gas, according to BSEE estimates.

By Saturday, there were 52 oil and gas platforms unmanned by energy workers, approximately 14% of the total, down from a peak of 171 evacuated offshore platforms earlier in the week, according to the offshore regulator.

Chevron (NYSE: CVX) reported that two of its platforms were operating at reduced rates due to a disruption at an onshore gas plant. Full production at these platforms, Jack/St. Malo and Big Foot, will resume once the onshore issue is resolved, as stated by the company.

Chevron did not disclose the operator of the gas plant but indicated it is working to return employees and restore oil production at its Anchor and Tahiti platforms, which were shut down in advance of Hurricane Francine. Initial assessments show that neither platform suffered significant damage.