Oil and gas production in the Gulf of Mexico was disrupted as Hurricane Isaias barreled toward the US south-east on Friday. Energy majors including Chevron evacuated offshore platforms and shut operations as the storm strengthened into a category three system with 120mph winds. Workers have been evacuated from more than 100 oil and gas platforms, and more than half of all offshore production was paused ahead of the hurricane's arrival. The US Marine Minerals Administration said evacuations had taken effect from 121 of the 371 manned platforms, halting an estimated 15 per cent of all US crude production.
The storm's path was headed for Florida, Alabama, Georgia and Mississippi, where governors declared a state of emergency. Experts expected little immediate impact on already high oil prices, unless the hurricane caused power outages that affected oil refineries. The US National Weather Service warned of likely flash flooding and a "life-threatening storm surge" with devastating winds likely along the Florida Panhandle and Alabama coasts. Isaias became the first tropical storm to develop into an Atlantic hurricane this year, marking the latest arrival of the season since 1905. The World Meteorological Organization reported sea-surface temperatures in the central and eastern tropical Pacific were forecast to increase to record levels as the El Niño phenomenon builds to year end, with the rise in sea surface temperatures potentially reaching 3.7C above average, peaking around December. This would be the highest since modern satellite observations began.
Source: Financial Times Companies · Summarized by HeadlinesBriefing