Oil companies cut nearly 91 percent of U.S. crude oil production in the Gulf of Mexico on Saturday, about 1.65 million barrels, as Hurricane Ida heads to the U.S.’s largest offshore oil fields. according to the Office of Safety and Environmental Enforcement.
The regulator also estimated that approximately 84.87% of natural gas production in the Gulf of Mexico has closed.
Ida is expected to reach a Category 4 hurricane before making landfall west of New Orleans. Louisiana residents rushed Saturday to prepare for the storm, which could cause winds of up to 225 mph (125 km / h) when it hits land.
Oil and gas companies evacuated 279 production platforms, which accounted for 49.82% of the 560 manned platforms in the Gulf of Mexico and closed nearly 91% of their typical offshore production as the storm approached, according to the offshore regulator.
The companies also withdrew 11 drilling boats off-site and out of the way of the storm on Saturday.
Federal offshore oil production in the Gulf of Mexico accounts for 17% of the country’s crude oil production and 5% of federal offshore dry gas production, according to the U.S. Energy Information Administration.
Andrew Lipow, president of Lipow Oil Associates in Houston, said Saturday that if New Orleans refineries receive direct success in a Category 4 storm, gas prices would likely rise about 10 cents a gallon in the Southeast market and of the mid-Atlantic.