Strengthening Hurricane Delta dealt the biggest blow to US offshore production in the Gulf of Mexico in 15 years, disrupting most of the region's oil and nearly two-thirds of its natural gas production.
An already big and powerful storm, the Delta could intensify further on Friday as it churns in the main oil producing area of the US Gulf of Mexico. Its winds reached 120 miles per hour (195 km/h), according to the National Hurricane Center.
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Delta shut down 1,67 million barrels a day, or 92% of U.S. Gulf of Mexico oil production, the most since 2005, when Hurricane Katrina destroyed more than 100 offshore rigs and halted production for months.
Oil prices fell in early trading in Asia on Friday but were on track for gains of around 10% for the week, boosted by disruptions in the Gulf of Mexico and a labor dispute in the North Sea. The two combined removed 3,17 million barrels per day from the market.
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279 oil production facilities in the Gulf of Mexico have been closed
Workers evacuated 279 Gulf of Mexico offshore facilities and producers moved 15 drilling rigs away from Delta's large and strong wind field. Tropical-force winds extend up to 160 miles from its center, the NHC said, a sign of its large size. Delta will subside as it approaches the coast, but is expected to remain a Category 3 storm on the 5-step Saffir-Simpson scale.
It will bring a storm surge of 1,2-3,3 meters (4 to 11 feet) to shore near landfall, the NHC said. In addition to oil, producers shut down nearly 62% of the region's natural gas production, or 1,675 billion cubic feet a day. Offshore fields in the Gulf of Mexico produce about 15% of US crude oil and 5% of natural gas production.
Finally, Total began on Thursday to close an oil processing unit at its 225.500 barrels per day (bpd) refinery in Port Arthur, Texas, due to the threat of Hurricane Delta, people familiar with the plant's operations said. . Royal Dutch Shell Plc said it would continue to operate its refineries at Convent, Geismar and Norco, Louisiana during the storm.