Crude oil production losses due to Hurricane Ida rank among the worst in the last 16 years, analysts said. As of September 8, about 79% of offshore oil production and 78% of natural gas output in the US Gulf of Mexico remained shut. So far, Ida has wiped some 17.5 million barrels of oil out of the market, with shutdowns estimated to continue for weeks. Analysts forecast that Ida could cut US oil production by 30 million barrels in 2021.
The worst production losses occurred in 2005, caused by Hurricanes Katrina and Rita. That year, many offshore platforms in the US Gulf of Mexico stopped production for months, removing around 162 million barrels of crude over three months. Data from the US Energy Information Administration showed oil production in the US Gulf of Mexico fell 12.6% from 2004 to 1.28 million bpd in 2005, while total US crude output dropped 4.7%.
The US Gulf of Mexico produces about 1.8 million bpd of oil, accounting for 16% of the US daily output. Post-Ida recovery would depend on the time needed to repair a key oil and gas transfer facility, analysts said. On Monday, Shell said it was still assessing damage to its West Delta-143 offshore platform, which transfers about 200,000 bpd of oil and gas from three large oil fields.
