Oil firms cut US Gulf of Mexico output by 59% ahead of Ida

[DENVER] Energy companies on Friday cut 59 per cent of US Gulf of Mexico crude oil production, or 1.6 million barrels, as the ninth-named storm of the hurricane season barreled toward the key US offshore oilfields, according to the Bureau of Safety and Environmental Enforcement (BSEE).

Hurricane Ida was off the western tip of Cuba on Friday and moving toward the Gulf of Mexico at about 15 miles per hour.

It is expected to become a major hurricane over the weekend and strike the US Gulf Coast, according to National Hurricane Center forecasts.

Oil and gas companies evacuated 89 platforms and one rig in preparation, shutting in production ahead of the storm's arrival. They also moved 11 drill vessels out of harm's way by midday Friday, the offshore regulator said.

Energy producers also cut 1.1 million cubic feet of natural gas production, or 49 per cent of their output, according to the BSEE.

The US Gulf of Mexico accounts for roughly 17 per cent of the nation's oil production and 5 per cent of its dry gas production, according to the US Energy Information Administration.

US crude prices settled 2 per cent higher on Friday at US$68.74 a barrel due to supply fears surrounding the storm.

REUTERS