Hurricane Francine Disrupts Energy Hubs in Louisiana

On Wednesday, energy production and agricultural exports from the U.S. Gulf of Mexico experienced partial disruptions, and several oil refineries in Louisiana reduced their operations in anticipation of Hurricane Francine’s landfall later that day, as reported by officials and operators.

U.S. crude oil prices surged over 2% due to concerns about prolonged production halts in the offshore oil sector as Hurricane Francine advanced. Nearly 39% of oil production and almost 50% of natural gas production in the U.S. Gulf of Mexico were suspended that day. A total of 171 production platforms and three rigs had been evacuated. These shutdowns resulted in a reduction of approximately 675,000 barrels of oil per day and 907 million cubic feet of natural gas per day from offshore production, according to the offshore regulator. The Gulf region accounts for about 15% of U.S. oil output and 2% of natural gas production.

According to  analysts, oil and gas production could be impacted for approximately two weeks, depending on the hurricane’s impact upon landfall. Strengthening into a Category 2 hurricane, Francine’s eyewall was approaching southern Louisiana on Wednesday afternoon, with maximum sustained winds reaching 100 mph (155 kph), as reported by the U.S. National Hurricane Center. The hurricane’s center is anticipated to move across Mississippi on Thursday.