Chevron, Shell and BP Pull Workers From the Gulf Ahead of Hurricane

Chevron has initiated evacuations of non-essential staff from all of its platforms in the Gulf of Mexico as meteorologists track a tropical storm moving toward the region. Reuters reported that, despite the evacuations, Chevron’s oil production at those facilities was continuing normally at the time of the report. Shell and BP have taken similar precautions; CNN said Shell was removing non-essential personnel from six offshore platforms, and BP was also evacuating staff in anticipation of the storm. Forecasters cited by the reports suggested the system could reach the Gulf Coast by Friday and might strengthen to a Category 2 hurricane before landfall. Analysts quoted in the coverage warned the storm adds another potential supply-side disruption to oil markets that are already experiencing stress. KCM Trade’s chief analyst Tim Waterer described the weather system as an "unwelcome complication" that could affect both production and refining. The Gulf Coast is a major hub for US fuel processing and offshore output: refineries on the Gulf Coast account for roughly half of the nation’s refining capacity, about 14.1 million barrels per day, while Gulf offshore platforms produce about 15% of US crude oil and 5% of its natural gas. If the storm forces refinery shutdowns or platform suspensions, that could remove meaningful near-term capacity from markets at a time of heightened supply concerns. This tropical system would be the first hurricane of the Atlantic season if it reaches the forecasted strength, after a season that has so far been quieter than some previous years. The National Oceanic and Atmospheric Administration had predicted a below-normal hurricane season this year, a projection that has held up to date.