Hurricane Francine disrupts energy output on U.S. Gulf Coast

(MENAFN) As Hurricane Francine advances towards the Louisiana coast, energy facilities across the U.S. Gulf Coast are taking drastic measures to safeguard their operations. The storm, which intensified into a hurricane on Tuesday evening according to the U.S. National Hurricane Center, has prompted significant precautionary actions in the region. The U.S. Environmental Protection Agency reports that the hurricane has led to the suspension of about 24 percent of crude oil production and 26 percent of natural gas production in the Gulf of Mexico. This interruption is anticipated to influence U.S. oil supplies and could result in an increase in domestic and offshore crude oil prices.

The Gulf of Mexico's offshore production, which averages around 1.8 million barrels per day, represents approximately 15 percent of the nation’s total crude oil output. The cessation of operations at these facilities is likely to have a notable impact on the broader energy market. The shutdown of these critical production sites underscores the susceptibility of the energy infrastructure to extreme weather conditions and raises concerns about potential disruptions in the energy supply chain.

In response to the hurricane, the U.S. Coast Guard has committed to working closely with maritime industry partners to expedite the reopening of affected ports once it is safe to do so. The current situation highlights the ongoing vulnerability of energy infrastructure to severe weather events and the potential for significant market disruptions that could affect both the supply and pricing of energy resources.

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