66% of Gulf of Mexico oil production still offline on Friday



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The largest deepwater crude oil terminal in the United States reopened after Hurricane Ida was forced to close, a spokesperson said on Friday, according to Reuters.

The Louisiana Sea oil port has been closed since August 28 in anticipation of Hurricane Ida.

But while LOOP LLC is back in business, 65 rigs (11.61%) in the Gulf of Mexico remain evacuated and 66.36% of all oil production in the Gulf of Mexico remains offline, or 1.2 million. barrels per day. 75.55% of all natural gas production also remains closed on Friday, according to the Bureau of Safety and Environmental Enforcement (BSEE).

Oil production in the United States was badly hit last week, falling to just 10 million barrels a day, a level not seen since February.

Hurricane Ida is the worst hurricane the U.S. offshore industry has seen in the Gulf of Mexico in 16 years, when Hurricane Katrina disrupted oil production at a certain level for many months, according to Zerohedge.

But Hurricane Ida caused the biggest initial loss in crude oil production ever seen by GoM producers.

Although LOOP reports that it is open, ship tracking data from Refinitiv Eikon does not show any vessels docked at the port on Friday. However, there is a VLCC, bound for Asia, waiting to be loaded with crude oil.

Royal Dutch Shell declared force majeure on many contracts on Thursday, canceling some export cargoes after Mars offshore facilities were damaged. At least two of the canceled shipments were destined for China.

Additional VLCCs, including from China, are heading to LOOP for crude loads for this month.

By Julianne Geiger for OilUSD

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