Over Two-thirds of Offshore US Oil Output Remain Shut in Gulf of Mexico
Offshore oil companies in the US resume their oil production process today as a result of Hurricane Ida that struck the country, despite the suspension of more than two-thirds of production in the Gulf of Mexico
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Oil prices fell last Tuesday, amid expectations of lower demand.
Government data showed that offshore oil companies in the United States resumed the production of 200,000 barrels per day on Friday, while most of the crude production off the Gulf Coast is still suspended as a result of Hurricane Ida.
Over two-thirds of the U.S. Gulf of Mexico's oil production, or 1.2 million barrels per day, were still shut as repair efforts dragged on, helping to support global oil prices.
Thursday, the Bureau of Safety and Environmental Enforcement said that about 76% of crude production, or the equivalent of 1.39 million barrels per day, and more than 1.72 billion cubic feet of natural gas production were still shut in the U.S. Gulf Coast.
Oil prices fell last Tuesday, amid expectations of reduced demand, after Hurricane Ida closed refineries on the US Gulf Coast.
Hurricane Ida, which reached landfall in the United States on Sunday, caused the ceasing of at least 94% of the sea-based oil and gas production in the Gulf of Mexico. Ida also caused "catastrophic" damage as well to the electricity network in the state of Louisiana.
