More than a quarter of U.S. Gulf of Mexico offshore oil and gas production remained shut by Hurricane Sally, which was moving inland and dumping heavy rains and cutting fuel demand in the U.S. Southeast
The storm made landfall early Wednesday near Gulf Shores, Alabama, as a powerful Category 2 hurricane, swamping the region with 10 to 20 inches of rain and boosting U.S. crude oil and gasoline prices. Some coastal areas received as much as 35 inches of rainfall, the National Hurricane Center said.
Some 508,000 barrels per day of oil production and 805 million cubic feet per day of natural gas output were shut in the U.S. Gulf of Mexico, according to the U.S. Interior Department. That is roughly a third of the shut-ins caused by Hurricane Laura, which landed further west in August. The storm toppled trees, flooded streets and left 570,000 homes and businesses without electricity. The outages could reduce fuel sales in coming days, said Patrick De Haan, head of petroleum analysis at GasBuddy.
Oil and chemical ports along the Mississippi River and the Louisiana Offshore Oil Port, a deepwater oil export terminal, reopened on Wednesday. Oil and gas producers also began returning workers to offshore platforms. A fifth of the 149 Gulf of Mexico platforms that were evacuated ahead of the storm had restored crews by midday, the Interior Department said.
At 4 p.m. CDT , Sally had weakened to a tropical storm and was 55 miles north of Pensacola, Florida, spreading heavy rainfall into Alabama and Georgia. Winds had fallen to 60 mph , the NHC said.
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Hurricane Sally Threatens ‘Catastrophic’ Flooding Along Northern Gulf Coast As It Makes LandfallI am a breaking news reporter for Forbes in London, covering Europe and the U.S. Previously I was a news reporter for HuffPost UK, the Press Association and a night reporter at the Guardian. I studied Social Anthropology at the London School of Economics, where I was a writer and editor for one of the university’s global affairs magazines, the London Globalist. That led me to Goldsmiths, University of London, where I completed my M.A. in Journalism. Got a story? Get in touch at isabel.togohforbes.com, or follow me on Twitter bissieness. I look forward to hearing from you.
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