Chevron Shuts Gulf of Mexico Platform as Tropical Storm Approaches

Chevron is shutting in production at its Petronius platform in the U.S. Gulf of Mexico and evacuating personnel as a precautionary measure against a developing tropical storm, the company announced in a statement on Monday.

Precautionary Measures

In preparation for Tropical Depression Two, which is forecast to strengthen into Tropical Storm Bertha, Chevron has begun moving all personnel from its Petronius facility to shore. The U.S. oil major is also transporting nonessential workers from its Tubular Bells and Blind Faith platforms, according to the company.

Chevron noted that production from its other operated assets in the Gulf of Mexico remains at normal levels. The National Hurricane Center has issued a tropical storm watch for a coastal area stretching from Florida to Louisiana, with the system expected to bring heavy rainfall through Friday.

Potential Production Impact

The approaching storm could disrupt a significant volume of crude oil production. According to a forecast model from consulting firm Earth Science Associates, approximately 2 million barrels of oil could be lost across the U.S. Gulf during the storm's duration.

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This potential disruption is significantly larger than the 10,000 barrels impacted by Tropical Storm Arthur last month. Earth Science Associates noted that the current storm's path includes more high-production oil platforms.

Regional Significance

The U.S. Gulf of Mexico is a critical hub for the nation's energy supply. The federal offshore region accounts for about 14% of total U.S. crude oil production, producing nearly 2 million barrels per day as of March. Key deepwater operators in the area include Shell, BP, and Occidental Petroleum, in addition to Chevron.

Furthermore, the Gulf Coast refining corridor holds roughly half of the total U.S. refining capacity of 18.4 million barrels per day. In response to the storm, utility provider CenterPoint Energy said Monday it had activated its Emergency Operations Center to prepare for potential weather-related power outages in the Houston area.