Hurricane Francine Sparks Evacuations and Energy Shutdowns in the Gulf

Hurricane Francine's Impact on the Gulf Energy Sector

Hurricane Francine strengthened into a hurricane on Tuesday night, prompting Louisiana residents to flee inland and leading oil and gas companies to shut in Gulf of Mexico production. As the storm develops, it poses a major threat to regional energy resources.

Evacuations and Production Shutdowns

With maximum sustained winds reaching 75 miles per hour, the storm was categorized as a Category 1 hurricane. The US National Hurricane Center predicts that Francine will impact the Louisiana coast with life-threatening conditions. Energy companies have already shut in 412,070 barrels per day of oil, which is approximately 24% of the Gulf’s production capacity, in preparation for the storm.

• Natural gas production has also been significantly affected, with 494 million cubic feet per day offline.
• US natural gas prices have surged by 3% due to these production losses.
• Major oil producers, including Exxon Mobil and Chevron, have evacuated offshore staff.

Port Closures and Preparations

As preparations continue, ports along the Louisiana and Texas coasts are imposing restrictions to vessel traffic. Notably, the port of Brownsville and terminals in Texas have initiated closures. In New Orleans, port authorities are gearing up to suspend operations, ready to assess damage and resume services afterwards.