Gulf Coast Braces for Hurricane Francine's Impact on Oil & Gas Operations

Offshore oil and gas producers in the U.S. Gulf of Mexico are evacuating staff and halting operations due to Tropical Storm Francine, expected to escalate into a hurricane. The storm threatens to cause severe disruptions in energy production and bring catastrophic weather to coastal regions, including life-threatening storm surges and flooding.

Offshore oil and gas producers in the U.S. Gulf of Mexico began evacuating staff and halting operations on Monday as Tropical Storm Francine moved through the energy-rich region. The National Hurricane Center predicts Francine will become the fourth hurricane of the Atlantic season, potentially reaching Category 1 with winds up to 85 mph before making landfall on the Louisiana coast on Wednesday evening.

Life-threatening storm surge and hurricane-force winds are predicted to impact the upper Texas and Louisiana coasts. Communities such as New Orleans have started offering sandbags to residents, while Grand Isle called for a voluntary evacuation and canceled school sessions. The storm's trajectory places crucial oil and gas facilities at risk of significant disruptions.

The U.S. Gulf of Mexico accounts for about 15% of the nation's crude oil and 2% of natural gas production. Oil prices rose 1.5% on Monday due to storm concerns, while natural gas futures slumped 5% over fears of disrupted LNG exports and power outages. Companies like Exxon Mobil, Shell, and Chevron have already begun evacuating staff and preparing for the storm's impact, highlighting the gravity of the threat posed by Francine.

(With inputs from agencies.)