Oil firms begin offshore US evacuations as record-breaking storm threatens

[HOUSTON] Energy companies on Monday began evacuating offshore oil platforms as the 25th named storm of the year formed in the Caribbean and was forecast to move into the Gulf of Mexico and threaten the Gulf Coast this week.

Tropical Storm Delta was expected to strengthen as it crosses the warm waters of the Gulf of Mexico midweek and to approach the northern Gulf Coast as a hurricane with up to 105 mile per hour (194 kilometers per hour) winds, the National Hurricane Center said.

If Delta makes a US landfall, it would be the 10th named storm to do so this year, breaking a record that dates to 1916.

Delta is the 25th named storm of the Atlantic hurricane season, which runs from June 1 to Nov 30.

This year's named storms so far have cost about US$9 billion in insured losses, compared with US$75 billion in 2017, according to a reinsurance brokerage estimate. The prior figure included hurricanes Irma, Maria and Harvey.

BP and BHP began evacuating non-essential personnel from their offshore platforms, the companies said. BHP also plans to shut production at its facilities by Wednesday.

Occidental Petroleum, the third largest offshore producer by volume, said it was taking steps to protect its people and facilities. Royal Dutch Shell said it was monitoring the storm.

Offshore production in US Gulf of Mexico accounts for 17 per cent of total US crude oil production and 5 per cent of total US dry natural gas production.

Delta was forecast to move into the southeastern Gulf of Mexico Tuesday night and begin sweeping across the prime oil-producing region on Wednesday. It could become a category 2 storm with winds of up to 105 mph by early Thursday, the NHC said.

The projected storm track has Delta making landfall on the central Gulf Coast later this week. Louisiana Governor John Bell Edwards urged the state's residents to prepare for the storm.

REUTERS