Gulf Oil Shut-Ins Jump to 63% as Hurricane Isaias Nears Landfall
CVX sits 44% above its 52-week low of $146.49.
Summary
Hurricane Isaias, a Category 3 storm with 120 mph winds, has forced the shut-in of 62.89% of Gulf oil production and 57.35% of gas output, up sharply from 25% and 16% on Wednesday. Chevron is among the most exposed operators, having curtailed offshore operations. The storm could knock out 9 million barrels of production, exceeding the 7.1 million lost to Tropical Storm Bertha in July. About 0.5 million barrels per day of refining capacity lies in the storm's path, including Chevron's 375,200 b/d Pascagoula refinery in Mississippi and Vertex Energy's 91,200 b/d Mobile refinery in Alabama. Personnel have been evacuated from 121 production platforms, or 32.61% of 371 manned platforms. Isaias is expected to make landfall along the Mississippi coastline late Friday or early Saturday, with the biggest risks to refinery operations being loss of electricity and flooding, and possible slight delays in delivering gasoline and diesel to parts of Florida, with a price impact of probably only 2 or 3 cents. This escalation follows Chevron's earlier warning that Q3 upstream production would be cut by 150,000 to 200,000 barrels per day due to turnarounds and downtime.
Updated with a Dow Jones Newswires report · What changed
Updates
· Dow Jones Newswires — Chevron's 375,200 b/d Pascagoula refinery and Vertex Energy's 91,200 b/d Mobile refinery are at risk from Hurricane Isaias.
- Storm Status — Isaias strengthened into a major hurricane earlier Friday, is a Category 3 hurricane with maximum sustained winds of 120 mph (195 km/h), was 170 miles south-southeast of the mouth of the Mississippi River at 8:20 a.m. ET, and is moving north-northeast at 15 mph.
- Landfall — Isaias is expected to make landfall along the Mississippi coastline late Friday or early Saturday.
- Evacuations — Personnel have been evacuated from 121 production platforms, or 32.61% of 371 manned platforms.
- Post-Storm Inspection — After the storm, facilities will be inspected; undamaged ones brought online after checks, damaged ones may take longer.
- Refinery Risks — Biggest risks to refinery operations include a loss of electricity and flooding.
- Fuel Delivery — There may be slight delays in delivering gasoline and diesel to parts of Florida, and the price impact on gasoline and diesel is probably only 2 or 3 cents.
- Refinery Locations — Chevron's Pascagoula refinery is located in Mississippi, and Vertex Energy's Mobile refinery is located in Alabama.
All 12 details
- Isaias strengthened into a major hurricane earlier Friday.
- Isaias is a Category 3 hurricane with maximum sustained winds of 120 mph (195 km/h).
- Isaias was 170 miles south-southeast of the mouth of the Mississippi River at 8:20 a.m. ET.
- Isaias is moving north-northeast at 15 mph.
- Isaias is expected to make landfall along the Mississippi coastline late Friday or early Saturday.
- Personnel have been evacuated from 121 production platforms, or 32.61% of 371 manned platforms.
- After the storm, facilities will be inspected; undamaged ones brought online after checks, damaged ones may take longer.
- Biggest risks to refinery operations include a loss of electricity and flooding.
- There may be slight delays in delivering gasoline and diesel to parts of Florida.
- The price impact on gasoline and diesel is probably only 2 or 3 cents.
- Chevron's Pascagoula refinery is located in Mississippi.
- Vertex Energy's Mobile refinery is located in Alabama.
At the time of this announcement, CVX was trading at $211.55 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $418B. The 52-week trading range was $146.49 to $217.78. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.