Gulf Storm Disrupts Offshore Oil and Gas Operations

U.S. offshore oil and gas producers are evacuating staff and halting operations as Tropical Storm Francine looms, expected to become a Category 1 hurricane. The storm threatens significant disruption to production and export facilities, with potential impacts including heavy rainfall, power outages, and flash flooding in the Gulf region.

Offshore oil and gas producers in the U.S. Gulf of Mexico began evacuating staff and scaling back operations on Monday as Tropical Storm Francine threatened the region. The storm is projected to become the fourth hurricane of the Atlantic season, bringing high winds and heavy rains to the U.S. mid-South.

Expected to escalate to a Category 1 hurricane, Francine could reach wind speeds of up to 85 mph and may make landfall on the Louisiana coast by Wednesday evening, according to the National Hurricane Center. Life-threatening storm surges are anticipated along the Texas and Louisiana coasts.

In response to the impending storm, New Orleans and other communities prepared flood-preventing sandbags for residents. Energy companies like Exxon Mobil, Shell, Chevron, and BP have started evacuations and scaled down operations on various offshore platforms. The storm's path is set to impact around 15% of U.S. crude oil production and 2% of natural gas output.

(With inputs from agencies.)