Hurricane Francine Causes Major Disruptions in US Gulf Energy Production
Hurricane Francine has caused significant impacts on oil production in the U.S. Gulf of Mexico. Nearly a fifth of crude oil production and 28% of natural gas output remain offline. As the storm moved through key offshore energy-producing areas, it brought strong winds and heavy rainfall. The storms also leaves coastal communities in Louisiana flooded and without power. The Bureau of Safety and Environmental Enforcement (BSEE) reported that over 522,000 barrels of oil and 755 million cubic feet of natural gas were still offline on Saturday.
The effects of the storm continue to impact energy production. By Sunday, 338,690 barrels of oil per day and 515 million cubic feet of natural gas were still offline. These delays have resulted in a cumulative loss of 2.16 million barrels of crude oil and 4.635 billion cubic feet of natural gas, according to BSEE estimates.
Offshore Platforms and Chevron’s Production Issues
As Hurricane Francine approached, 171 offshore platforms were evacuated. Many workers were sent home, leaving platforms unmanned. It had a direct effect on production rates. Although energy companies have been working to return their workers and restore production, the storm’s aftermath has proven difficult to navigate. By Sunday, 37 platforms remained evacuated, which is around 10% of the total number of platforms in the Gulf of Mexico. This is a marked improvement from the height of the storm, but still reflects the scale of the disruption caused by Hurricane Francine.
Chevron, one of the major oil producers operating in the Gulf, also faced operational challenges. Two of its platforms, Jack/St. Malo and Big Foot, have been running at reduced rates due to a disruption at an onshore gas plant. Full production at these platforms is expected to resume once the onshore facility’s issues are resolved. Additionally, Chevron has started returning workers to the Anchor and Tahiti platforms, both of which were shut down ahead of the hurricane. Early assessments suggest that these platforms sustained minimal damage.
Outlook for Energy Production Recovery
The energy industry is slowly recovering from the impacts of Hurricane Francine on oil, but the damage to oil and gas infrastructure has been significant. While companies like Chevron are making progress in resuming operations, the full recovery of production may take time. The cumulative production losses highlight how natural disasters can disrupt energy supplies, leading to ripple effects across the market.
Stay informed about the latest updates in the energy market and other important trading news by visiting Fixio Markets.
