Posted on July 11, 2019 by Ilias Kiritsis
Oil production in the Gulf of Mexico has come to a halt as many companies are forced to evacuate their workers due to the possibility of a Category 1 Hurricane forming in the region.
The cyclone, which is currently still in the process of forming over the Gulf, is expected to hit the southern US coast by Saturday and will be reaching wind speeds of 70-90 mph.
In preparation, oil majors such as Chevron, Exxon, BP, BHP & Shell have begun shutting down oil platforms and evacuating their personnel in the region.
Chevron is in the process of evacuating all staff from five oil platforms and removing all non-essential personnel from a sixth. Shell and BP are also evacuating staff from 4 platforms respectively, while BHP is reducing production on two of its oil rigs.
According to Bloomberg, the production of 250,000 to 700,000 barrels a day could be affected by the incoming storm.
The United States Coast Guard is expecting to have to issue a potential waterway restriction on the Mississippi river due to potential flooding, which could severely limit the movement of tankers in the area.
Oil rigs in the Gulf of Mexico account for over 15% of America’s oil production. As a result, this latest development has seen brent crude prices increase by almost four per cent.