UPDATE 2-Gulf of Mexico oil, natgas facilities shut by Ida

Mon Nov 9, 2009 6:48pm EST
 
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* Tropical Storm Ida shuts 30 percent Gulf oil output -MMS

* Storm also closes off more than a quarter of gas

* Oil climbs $2.00 per barrel on storm threat

(Updates with outage figures, market reaction, forecasts)

HOUSTON, Nov 9 (Reuters) - Tropical Storm Ida shut 30 percent of U.S. offshore oil production and more than a quarter of natural gas output on Monday as it raced across the Gulf of Mexico, the U.S. government said.

U.S. crude oil futures on the New York Mercantile Exchange climbed $2.00 a barrel on Monday to finish at $79.43 in part due to shut production in Gulf.

Energy companies were waiting for the storm to make landfall late Monday or early Tuesday before returning workers to restart production platforms and drilling rigs in the eastern oilfields in Gulf.

Onshore, refineries had not curtailed operations due to the storm, which weakened throughout Monday from a category 2 hurricane to a tropical storm as it encountered cooler water, high windshear and dry air.

The Gulf is the source of 25 percent of U.S. domestically produced oil and 15 percent of natural gas. About 40 percent of U.S. refining capacity is located on the Gulf Coast from Corpus Christi, Texas, to Pascagoula, Mississippi.

The latest forecasts have Ida coming ashore near Mobile Bay, Alabama, which the U.S. Coast Guard shut to ship traffic on Monday afternoon, and where Exxon Mobil Corp (XOM.N) operates a large natural gas field. (For a graphic on the Hurricane Ida's projected path, click: here)

Exxon, like many companies, evacuated workers who weren't essential to operations but without shutting production.

Several major portions of the Gulf energy infrastructure were closed down Sunday and Monday as the storm may conditions unsafe to continue.

The Independence natural gas hub -- the largest gas processing facility in the Gulf -- was shut down by the storm, said Enterprise Partners LP (EPD.N). [ID:nN09254274]

The company also said the Viosca Knoll and West Delta 68 platforms had been shut in. For a list of operations shut over the weekend, click [ID:nN09212389]

The giant Louisiana Offshore Oil Port suspended tanker offloadings over the weekend. The LOOP continued to receive oil via pipeline from the Thunder Horse and Mars platforms while shipping oil to refineries through underground pipes.

Ship traffic along the Mississippi River between New Orleans and the Gulf of Mexico was also shut down, the U.S. Coast Guard said. [ID:nN09219613]

BP (BP.L), Chevron (CVX.N), Marathon (MRO.N), Murphy MUR.N, Shell (RDSa.L) said some of their production was shut. (Reporting by Bruce Nichols, Kristen Hays and Erwin Seba in Houston, Janet McGurty in Toronto, Joshua Schneyer, Edward McAllister and Matthew Robinson in New York; Editing by Marguerita Choy)

 

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