[Editor's note: This story was updated at 3:28 p.m. CT June 8.]
Energy companies on June 8 began preparations to resume oil and gas production in the U.S. Gulf of Mexico (GoM), a day after Tropical Storm Cristobal blew through with high winds and heavy rains.
Producers had evacuated 188 offshore facilities and shut in wells producing 635,000 bbl/d of oil and 878 MMcf/d of natural gas at U.S. GoM wells as of June 7.
Royal Dutch Shell Plc, Murphy Oil Corp. and BP Plc were among the companies that said June 8 they were starting to resume normal operations and return workers to offshore facilities.
Energy companies typically inspect platforms after a storm passes and return evacuated workers once it is safe to do so.
"There were no impacts to our production as a result of TS Cristobal, and we expect to resume our drilling operations as conditions continue to improve today and tomorrow," Shell said.
U.S. Gulf Coast spot gasoline prices strengthened slightly on June 8, traders said, up 0.25 cent per gallon from June 5.
Cristobal has weakened to a tropical depression after making landfall in Louisiana on June 8 with 50 mile-per-hour (80 kph) winds. It led producers to shut 34% of oil and 35% of gas output in the GoM, offshore regulator Bureau of Safety and Environmental Enforcement said. The region provides about 1.93 million bbl/d of oil.
Exxon Mobil Corp., Shell and PBF Energy Inc, kept their oil refineries in Louisiana in operation as Cristobal hit over the weekend, people familiar with operations said. PBF declined to comment. Exxon Mobil and Shell were not immediately available to comment.
Exxon Mobil's 502,500 bbl/d Baton Rouge, PBF's 190,000 bbl/d Chalmette and Shell's 225,300 bbl/d Norco, La., refineries were operating normally on June 8, the sources said.
Chevron Corp. refineries in Pascagoula, Mississippi; Belle Chasse, Louisiana; and Pasadena, Texas, did not sustain any significant damage, the company said June 8, adding that "we continue to supply our customers."
Cristobal was 15 miles (30 km) east of Monroe, La., at 10 a.m. on Monday and dropping up to 10 inches (25.4 cm) of rain. It should move through Arkansas and Missouri on June 8 and 9, U.S. National Hurricane Center forecasters said.
Recommended Reading
Analyst: Is Jerry Jones Making a Run to Take Comstock Private?
2024-09-20 - After buying more than 13.4 million Comstock shares in August, analysts wonder if Dallas Cowboys owner Jerry Jones might split the tackles and run downhill toward a go-private buyout of the Haynesville Shale gas producer.
BP Profit Falls On Weak Oil Prices, May Slow Share Buybacks
2024-10-30 - Despite a drop in profit due to weak oil prices, BP reported strong results from its U.S. shale segment and new momentum in the Gulf of Mexico.
Private Producers Find Dry Powder to Reload
2024-09-04 - An E&P consolidation trend took out many of the biggest private producers inside of two years, but banks, private equity and other lenders are ready to fund a new crop of self-starters in oil and gas.
Utica Oil E&P Infinity Natural Resources Latest to File for IPO
2024-10-05 - Utica Shale E&P Infinity Natural Resources has not yet set a price or disclosed the number of shares it intends to offer.