Operators in the US Gulf of Mexico have continued to restart their production in the region, more than two weeks after Hurricane Ida slammed into the Louisiana coast.
About 44% of the region’s crude production, or 793,522 barrels per day, remained shut in, while 51%, or 1.15 billion cubic feet of natural gas production also remained offline, according to Monday estimates by the US Bureau of Safety and Environmental Enforcement based on operator reports.
That number is down about 50% from two weeks ago, when about 94% of the region’s crude production, or about 1.7 million bpd, was shut in.
"Hurricane Ida’s impact is lasting more than the market expected and as some oil production capacity remains shut this week, prices are rising on supply not being restored and therefore not reaching refineries that have restarted operations quicker than producers,” said Nishant Bhushan, oil markets analyst for Rystad Energy.
“However, despite Hurricane Ida being unusually net-bullish on supply-demand, the impact of additional hurricanes is not yet known and there is a risk when the market is drawing bullish price conclusions ahead of time.”
Personnel from 47 production platforms remained evacuated, about 8.4% of the 560 manned platforms in the Gulf. Meanwhile two dynamically positioned rigs out of 15 also remained evacuated.
Anglo-Dutch supermajor Shell are beginning to redeploy personnel to its Olympus asset, and continuing redeployment to its Enchilada/Salsa, Auger, Mars, and Appomattox assets. Its Mars, Ursa, and Olympus assets remain shut in, while its Appomattox asset is back online, while its Enchilada/Salsa and Auger assets begin to ramp up production.
Hurricane Ida, which made landfall 29 August mid-day as a Category 4 storm, devastated the area around Port Fourchon, Louisiana, flooding communities and levelling buildings. The storm was also behind the deaths of at least 28 people in Louisiana, according to reports.