Chevron, Shell, and BP are evacuating workers from their Gulf of Mexico platforms as a tropical storm approaches the region. While Chevron is only removing non-essential personnel and maintaining normal oil production, the storm warning adds another layer of concern to an already volatile oil market. Shell and BP are also evacuating non-essential staff from multiple offshore platforms, with forecasts suggesting the storm could strengthen into a Category 2 hurricane by the time it reaches the Gulf Coast.
Analysts view this storm as an "unwelcome complication for crude, raising the prospect of production and refining disruptions at a time when the market already has enough supply-side headaches," according to KCM Trade's chief analyst Tim Waterer. The storm could potentially impact up to six Gulf Coast refineries, which account for half of the United States' refining capacity (14.1 million barrels daily). Such disruptions would exacerbate the ongoing global fuel crunch.
Platforms in the Gulf of Mexico are responsible for 15% of the U.S. crude oil production and 5% of its natural gas production. Despite predictions of a severe hurricane season due to climate change, this year's Atlantic hurricane season has been relatively quiet. The National Oceanic and Atmospheric Administration had predicted a below-normal season, which has largely held true.
By Charles Kennedy for Oilprice.com




