Shell, Chevron, BP Pull Crews as Hurricane Isaias Barrels Toward Gulf Coast Refineries
Key takeaways
- Hurricane Isaias has forced a 63 % cut in Gulf oil output, tightening supply and supporting higher crude and fuel prices.
- 1.3 million barrels per day shutdown (62.9% of Gulf output)
- Brent $104.28 a barrel
- WTI $91.49 a barrel
What happened
Shell plc, Chevron Corp. and BP plc have pulled workers off Gulf of Mexico platforms and shut in production as Hurricane Isaias, now a Category 3 storm with 120 mph winds, approaches the northern Gulf Coast. By Friday, Gulf‑region output had dropped to about 1.3 million barrels per day—over 60 % of current Gulf production—after earlier cuts of roughly 25 % on Wednesday. The three majors evacuated staff from key platforms (Shell’s Mars, Olympus, Ursa, Vito and Appomattox; Chevron’s four…
Why it matters
The sudden 62.9 % cut in Gulf output removes a significant share of U.S. crude supply, potentially tightening the market and supporting higher prices. Refineries are a larger worry because their shutdown would halt fuel production and create tanker delays, which historically have pushed gasoline, jet fuel and diesel…
Short-term and longer-term
Short-term. Over the next 24–48 hours, watch for a sharp move in crude futures as the storm’s path becomes clearer.
Longer-term. For the coming months, the event underscores the Gulf’s strategic importance to U.S.