Business/economics

GOM Operators Begin Evacuations as Tropical Storm Advances

As a disturbance in the Gulf of Mexico continues to develop, about 32% of the oil production and 18% of the natural gas production in the GOM has been shut in.

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As a disturbance in the Gulf of Mexico (GOM) continues to develop, the National Hurricane Center forecasts the Potential Tropical Cyclone Two will become Tropical Storm Barry, and possibly Hurricane Barry, as it hits the northern Gulf Coast this weekend. The system brings a threat of significant rainfall flooding, storm-surge flooding, and high winds to parts of Louisiana, Mississippi, Alabama, and east Texas.

The US Bureau of Safety and Environmental Enforcement reported that based on data submitted as of 11:30 CDT today by Gulf of Mexico offshore operators, personnel have been evacuated from a total of 15 production platforms, approximately 2% of the 669 manned platforms in the region.

Personnel have been evacuated from 4 rigs (nondynamically positioned rigs), equivalent to 19% of the 21 rigs of this type currently operating in the Gulf. Three dynamically positioned (DP) rigs have moved off location out of the storm’s path as a precaution, representing 15% of the 20 DP rigs currently operating in the Gulf.

BSEE estimates that approximately 32% of the current oil production in the GOM has been shut in, or about 602,715 BOPD. About 18% of the natural gas production, or 496 MMcf/D, has been shut in. The production percentages are calculated using information submitted by offshore operators in daily reports. Shut-in production information included in these reports is based on the amount of oil and gas the operator expected to produce that day.

 

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Source: Bloomberg