Energy firms in the Gulf of Mexico in the U.S. have reportedly shut 57.6% or 1.07 BPD (barrels per day) of their offshore crude oil production. As per the recent statement made by the U.S. government, the crude oil production has been temporarily shut due to the formidable twin-threats arising from Tropical Storm Laura and Hurricane Marco.
In addition to crude oil, the region also has shut 44.6% or 1,205 MMCFD (million cubic feet per day) output of the natural gas ahead of the twin storms, according to the federal BSEE (Bureau of Safety & Environmental Enforcement). BSEE further cited that the workers in the Gulf of Mexico have been evacuated from 114 production platforms, out of the total 643 manned platforms in the region.
Recently gathered data has revealed a recording of nearly 75 mph of winds in Marco. It is the 3rd hurricane that has occurred in the region in 2020 and will arrive nearly 2 weeks before the average arrival day of the season’s 3rd hurricane, i.e. 9th September. Marco had high conditions for intensification, with SSTs (sea surface temperatures) near 87°F (30.5°C), 15-20 knots of wind shear, as well as 60% humidity. According to satellite images, the small storms can intensify & weaken rapidly. Marco is expected to experience large intensity changes, with a sudden ramp-up in the wind shear is expected to weaken the storm abruptly, which can cause the storm to be shifted towards western Louisiana.
Due to the storms headed for the U.S. Gulf of Mexico that shut over half of the offshore production, the oil prices also have surged recently. The price of Brent crude was settled at $45.13 per barrel, gaining 1.76% or 78 cents. On the other hand, the U.S. West Texas Intermediate crude price was settled at $42.62 per barrel, rising 0.66% or 28 cents.
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