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Share Price Information for BP (BP.)

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Share Price: 510.50
Bid: 510.50
Ask: 510.60
Change: -5.30 (-1.03%)
Spread: 0.10 (0.02%)
Open: 516.30
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Prev. Close: 515.80
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UPDATE 2-U.S. offshore energy producers brace for Hurricane Zeta impact

Tue, 27th Oct 2020 12:46

(Adds output losses, prices, storm position, intensity)

By Erwin Seba

HOUSTON, Oct 27 (Reuters) - Energy firms and ports along the
U.S. Gulf Coast prepared on Tuesday for another test as
Hurricane Zeta, the 11th hurricane of the season, entered the
Gulf of Mexico.

BP, Chevron and Royal Dutch Shell,
among others, evacuated 157 offshore facilities and sharply cut
production from the offshore region. Pipeline operator Enbridge
evacuated two platforms and removed workers from a
Louisiana natural gas processing plant.

Some oil producers were pulling staff for at least the sixth
time since June, a process made more difficult by the COVID-19
pandemic with workers required to be tested for the virus before
returning to work.

Energy producers on Tuesday shut nearly half the region's
oil output, or 914,811 barrels per day (bpd), and 1.5 billion
cubic feet per day, or more than half its natural gas output,
the U.S. offshore energy regulator said.

U.S. Gulf of Mexico offshore oil production accounts for
about 17% of total U.S. crude oil output and 5% of total U.S.
dry natural gas production.

Zeta's winds decreased to 65 miles per hour (100 kph) after
sweeping across the Yucatan Peninsula early Tuesday but are
forecast to restrengthen to 85 mph as its churns over the
central Gulf of Mexico, the NHC said in a mid-day update.

On Monday, it became the 11th hurricane of the Atlantic
season, which on average has six.

A hurricane watch was issued for parts of Louisiana to the
Mississippi-Alabama border by the U.S. National Hurricane Center
(NHC). Zeta could hit the U.S. coast on Wednesday at or near
hurricane strength, the NHC said.

Energy ports from Baton Rouge to Pascagoula were operating
under advisories warning of the potential for gale force winds.
A Louisiana deep water oil export port said it was implementing
its inclement weather plan.

U.S. crude futures gained 1.8% in Tuesday trading after
falling more than 3% on Monday over fears of rising COVID-19
cases and increased crude supplies.
(Reporting by Erwin Seba
Writing by Gary McWilliams
Editing by David Holmes and Grant McCool)

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