Hurricane Francine Impact on 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, according to the U.S. offshore energy regulator.

Francine passed through significant oil and gas producing areas in the U.S. Gulf of Mexico, hitting Louisiana with winds up to 100 miles per hour (161 kph). The storm caused tree destruction, coastal flooding, and widespread power outages across four states, leaving around 37,000 customers in Louisiana without electricity on Saturday.

A survey conducted by energy producers revealed that over 522,000 barrels of oil production and 755 million cubic feet of natural gas were still offline on Saturday, as reported by the Bureau of Safety and Environmental Enforcement (BSEE).

Cumulative production losses this week due to Francine amounted to 1.82 million barrels of crude oil and 4.12 billion cubic feet of natural gas, based on BSEE estimates.

On Saturday, there were 52 unmanned oil and gas platforms, representing about 14% of the total, down from 171 evacuated platforms earlier in the week.

Two platforms operated by Chevron (NYSE:CVX) experienced reduced rates due to an interruption at an onshore gas plant, but full production will resume once the disruption is resolved. Chevron did not specify the plant’s operator.

Chevron reported that workers were being returned and oil production restored at its Anchor and Tahiti platforms, which had been shut down in anticipation of the hurricane. Initial evaluations indicate that neither platform sustained significant damages.