[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
Classic Rock, New Wells: Permian Conventional Zones Gain Momentum
2024-12-02 - Spurned or simply ignored by the big publics, the Permian Basin’s conventional zones—the Central Basin Platform, Northwest Shelf and Eastern Shelf—remain playgrounds for independent producers.
Falcon, Tamboran Spud Second Well in Australia’s Beetaloo
2024-11-25 - Falcon Oil & Gas Ltd., with joint venture partner Tamboran, have spud a second well in the Shenandoah South Pilot Project in the Beetaloo.
APA Group to Build Pipeline in Expanding Australian Gas Play
2024-12-17 - APA Group will build and operate a 12-inch, 23-mile natural gas pipeline for a proposed 40-MMcf/d pilot drilling project in Australia.
Watch for Falling Gas DUCs: E&Ps Resume Completions at $4 Gas
2025-01-23 - Drilled but uncompleted (DUC) gas wells that totaled some 500 into September 2024 have declined to just under 400, according to a J.P. Morgan Securities analysis of Enverus data.
Coterra Takes Harkey Sand ‘Row’ Show on the Road
2024-11-20 - With success to date in Harkey sandstone overlying the Wolfcamp, the company aims to make mega-DSUs in New Mexico with the 49,000-net-acre bolt-on of adjacent sections.