Oil firms slashed U.S. Gulf of Mexico output by 91% ahead of powerful Hurricane Ida

August 31, 2021: -On Sunday, According to the Bureau of Safety and Environmental Enforcement, oil firms cut almost 91% of U.S. Gulf of Mexico crude oil production, 1.65 million barrels roughly, as Hurricane Ida makes its way toward major U.S. offshore oilfields, the

regulator also estimated that 84.87% of natural gas production in the Gulf of Mexico was roughly shut-in.

On Saturday, Ida is forecast to reach a Category 4 hurricane before landfall west of New Orleans. Louisiana residents rushed to prepare for the storm, which could bring winds as high as 140 mph when it makes landfall.

According to the offshore regulator, oil and gas companies evacuated 279 production platforms, which represents 49.82% of the 560 manned platforms in the Gulf of Mexico, and shut-in approximately 91% of their typical offshore production as the storm came in.

On Saturday, the companies also moved 11 drill vessels off location and out of the storm’s path.

The Gulf of Mexico federal offshore oil production accounts for 17% of its crude oil production and 5% of its national offshore dry gas production.

Saturday, Andrew Lipow, president of Lipow Oil Associates in Houston, said that if the New Orleans refineries take a direct hit from a Category 4 storm, gas prices would likely increase by about 10 cents a gallon in the Southeastern and Mid-Atlantic markets.