Hurricane “Ida” inflicts losses on American oil … the impact extends globally

The two-week loss of offshore oil production in the United States increased yesterday, Thursday, in light of the cancellation of contracts, as the prolonged disruptions due to damage caused by Hurricane Ida Around the world.

According to government data, three-quarters of oil production in the US Gulf of Mexico is still suspended as reform efforts continue. Power outages at processing plants and onshore oil pipelines prevented some of the oil production from reaching land, which has been supporting oil prices since last week.

Nishant Bhushan, an oil market analyst at consulting firm Rystad Energy, said the resumption of operations “is still more than a week away, at least”.

Royal Dutch Shell, the largest oil producer in the Gulf of Mexico, declared force majeure on oil deliveries on Thursday in Asia due to the damage caused by Hurricane Ida. He said 80 percent of its Gulf production remains suspended.

The market lost more than 20 million barrels of US Gulf production. According to the Office of Safety and Environmental Enforcement, about 1.39 million barrels per day of crude oil production and more than 1.72 billion cubic feet of natural gas production stopped on Thursday.

However, 71 of the 288 plants that were evacuated before the typhoon that hit the region in August are empty.

Damage assessment continues at Shell’s West Delta 143 offshore facility, which serves as a transportation terminal for all production from the Mars Passage to the onshore crude oil terminals. The center is connected to the mainland by huge pipes.

“The pipeline should remain intact, but less oil flows now,” said Colin White, an analyst at Rystad.

The US Energy Information Administration downgraded its forecast for US oil production from 100,000 barrels per day to 11.7 million barrels per day in 2022.

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