Monday, August 18, 2008

East Gulf players pull out workers

Shell and Marathon Oil pulled non-essential workers from the eastern and central Gulf of Mexico due to the threat of Tropical Storm Fay, but offshore production was unaffected, the companies said.

Shell said about 200 workers were evacuated yesterday from the eastern Gulf, the same number the company evacuated from that region on Saturday. Marathon said the number evacuated from the central Gulf was not immediately available. Both companies described the evacuations as precautionary in the event the storm may bear toward offshore platforms as it progresses into the Gulf, which US forecasters said should take place today or tomorrow. The sixth cyclone of what experts predict will be an unusually busy Atlantic hurricane season, Fay may near hurricane strength as it approached Cuba yesterday, and be at hurricane strength over the Florida Keys and off Florida's west coast later today, US forecasters said. Fay is the third storm of the 2008 Atlantic hurricane season to menace US offshore oil and natural gas production, which provides 25% of US oil output and 15% of US natural gas production. This year's Hurricane Dolly and Tropical Storm Edouard only temporarily shut fractions of offshore production and did not outweigh geopolitical factors or the US economic outlook in determining crude oil and refined products prices. As of 5pm Eastern Daylight Time (2200 GMT) Fay was off Cuba's southern coast, according to the National Hurricane Centre. Shell, the US unit of Anglo Dutch Shell, is the leading deep-water producer in the Gulf of Mexico, from where it draws 80% of its US oil and natural gas production, according to the company's website. Among Shell's eastern-most Gulf platform is the Ram-Powell. Other eastern Gulf Shell platforms include its Mars and Ursa units.
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