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Hurricane Ida damages Shell’s facilities; 80% offshore oil still down

Hurricane Ida West Delta

Hurricane Ida left a big toll on the energy sector. As of September 2, oil major Royal Dutch Shell said it identified damage from the hurricane to its West Delta-143 offshore facilities in the Gulf of Mexico. As of this Monday, almost 80% of all offshore U.S. oil production remains shut.

The company said it recognized the damages to the asset while performing an initial flyover. “When it is safe to do so, we will send personnel offshore to provide a closer inspection of these facilities to understand the full extent of the damage and the degree to which our production in the Gulf of Mexico will likely be impacted.” Company said.

Despite the damages to West-Delta, the company’s Perdido asset in the southwestern Gulf of Mexico suffered no damages from the storm. Also, the company has its floating production, storage, and offloading vessel Turritella asset back online.

“All of our other offshore assets remain shut in and remain fully evacuated at this time. At the early phase of assessment and recovery, approximately 80% of Shell-operated production in the Gulf of Mexico remains offline.” Shell highlighted.

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Hurricane Ida still has a big impact on energy, one week later

On the other hand, also 80% of the overall Gulf of Mexico production remains shut in the region, a week later after the storm landed in Louisiana. As reported previously, energy companies, particularly those in the upstream and downstream sectors, have been struggling to resume production after Ida damaged platforms and caused onshore power outages.

About 1.5 million barrels per day of oil production, or 84%, remains shut; while another 1.8 billion cubic feet per day of natural gas output, or 81%, remains offline, according to the Bureau of Safety and Environmental Enforcement. Also, Reuters remarks that a total of 99 oil and gas production platforms remain evacuated, down from the 288 evacuated initially.

As for the downstream sector, five refineries in Louisiana remained shut on Monday. The toll on the production side is of 1 million barrels per day of refinery capacity, or about 6% of the total U.S. operable refining capacity, shut, according to the Department of Energy.

Finally, as of power, outages are still the norm. As of Monday morning, there were still about 573,000 outages due to Ida, including 568,000 customer outages remaining in Louisiana, DOE said.

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