Gulf of Mexico: oil majors evacuate their teams in the face of Francine

Gulf of Mexico energy companies such as Chevron, ExxonMobil and Shell are evacuating staff and suspending some drilling operations in response to Tropical Storm Francine, anticipating major disruptions to oil and gas production.

Share:

Oil and gas producers in the Gulf of Mexico are bracing for major disruptions due to Tropical Storm Francine, which could become a Category 1 hurricane.
Chevron, ExxonMobil, Shell, and other companies have taken preventive measures by evacuating non-essential personnel from offshore platforms and temporarily suspending drilling activities.
ExxonMobil has already shut down its Hoover platform, located some 241 km from Corpus Christi, Texas, while Shell has halted drilling on its Perdido and Whale platforms.
These actions are aimed at limiting risks to personnel and infrastructure, as the storm threatens to hit key facilities, including those of Freeport LNG and other liquefied natural gas (LNG) exporters.
The storm’s potential impact on oil and gas infrastructure is significant.
The Gulf of Mexico area contributes around 15% of total US crude oil production and 2% of its natural gas production.
The fields in Francine’s path are estimated to account for around 125,000 barrels per day of oil production and 300 million cubic feet per day of natural gas, jeopardizing a significant part of the country’s energy supply.

Impact on energy markets

Francine’s threat has already had an immediate impact on the markets.
Crude oil prices rose by 1.6%, driven by fears of production and refining disruptions in the region.
Conversely, natural gas futures fell by 5% on expectations of lower demand, particularly if the storm disrupts LNG exports from the USA.
In the event of a prolonged outage, facilities such as Freeport LNG and Cheniere Energy could see their operations significantly impacted.
The ports of Corpus Christi, Freeport, and Galveston, Texas, have already implemented shipping restrictions, although some ports, such as Houston and New Orleans, are still open to marine traffic.
These restrictions have been imposed by the US Coast Guard to avoid incidents during the storm.
Meanwhile, the Louisiana Offshore Oil Port (LOOP), an essential deepwater port for crude oil imports, continues to operate normally, but is closely monitoring the situation.

Safety measures and local preparation

Local authorities and businesses in the region are stepping up their vigilance.
In Louisiana, Calcasieu Parish officials have distributed sandbags to help residents protect themselves from anticipated flooding.
In New Orleans, similar measures are being taken, and voluntary evacuations have already begun in Grand Isle.
The Texas power grid, which has been affected by previous weather events such as Hurricane Beryl, is also preparing to deal with potential local blackouts.
Energy companies such as BP and Occidental Petroleum are closely monitoring Francine’s progress and are ready to activate their contingency plans should the need arise.
LNG facilities, such as those operated by Freeport LNG, have already begun to take preventive measures, although details remain limited.

Strategic challenges for the energy sector

The arrival of Storm Francine highlights the ongoing challenges facing energy operators in the Gulf of Mexico.
Platforms such as Enchilada, Cerveza, Perdido, and Hoover, among others, could be directly affected if the storm follows its predicted path.
Industry players must constantly evaluate their strategies to ensure continuity of operations while minimizing risks.
This situation underlines the importance of energy infrastructure resilience in the face of increasingly frequent climatic events.
As companies and local authorities prepare for the immediate challenges posed by Francine, discussions around optimizing safety measures and managing climate risks are intensifying.
For the energy sector, these storms underline the importance of robust emergency plans and rapid adaptation to changing conditions.

The expansion of the global oil and gas fishing market is accelerating on the back of offshore projects, with annual growth estimated at 5.7% according to The Insight Partners.
The Competition Bureau has required Schlumberger to divest major assets to finalise the acquisition of ChampionX, thereby reducing the risks of market concentration in Canada’s oilfield services sector. —
Saturn Oil & Gas Inc. confirms the acquisition of 1,608,182 common shares for a total amount of USD3.46mn, as part of its public buyback offer in Canada, resulting in a reduction of its free float.
OPEC slightly adjusts its production forecasts for 2025-2026 while projecting stable global demand growth, leaving OPEC+ significant room to increase supply without destabilizing global oil markets.
Talks between European Union member states stall on the adoption of the eighteenth sanctions package targeting Russian oil, due to ongoing disagreements over the proposed price ceiling.
Three new oil fields in Iraqi Kurdistan have been targeted by explosive drones, bringing the number of affected sites in this strategic region to five in one week, according to local authorities.
An explosion at 07:00 at an HKN Energy facility forced ShaMaran Petroleum to shut the Sarsang field while an inquiry determines damage and the impact on regional exports.
The Canadian producer issues USD 237 mn in senior notes at 6.875 % to repay bank debt, repurchase USD 73 mn of 2027 notes and push most of its maturity schedule to 2030.
BP revised upwards its production forecast for the second quarter of 2025, citing stronger-than-expected results from its US shale unit. However, lower oil prices and refinery maintenance shutdowns weighed on overall results.
Belgrade is engaged in complex negotiations with Washington to obtain a fifth extension of sanctions relief for the Serbian oil company NIS, which is majority-owned by Russian groups.
European Union ambassadors are close to reaching an agreement on a new sanctions package aimed at reducing the Russian oil price cap, with measures impacting several energy and financial sectors.
Backbone Infrastructure Nigeria Limited is investing $15bn to develop a 500,000-barrel-per-day oil refinery in Ondo State, a major project aimed at boosting Nigeria’s refining capacity.
The Central Energy Fund’s takeover of the Sapref refinery introduces major financial risks for South Africa, with the facility still offline and no clear restart strategy released so far.
PetroTal Corp. records production growth in the second quarter of 2025, improves its cash position and continues replacing key equipment at its main oil sites in Peru.
An explosion caused by a homemade explosive device in northeastern Colombia has forced Cenit, a subsidiary of Ecopetrol, to temporarily suspend operations on the strategic Caño Limón-Coveñas pipeline, crucial to the country's oil supply.
U.S. legislation eases access to federal lands for oil production, but fluctuations in crude prices may limit concrete impacts on investment and medium-term production, according to industry experts.
Permex Petroleum Corporation has completed a US$2mn fundraising by issuing convertible debentures, aimed at strengthening its cash position, without using intermediaries, and targeting a single institutional investor.
Petróleos de Venezuela S.A. (PDVSA) recorded $17.52bn in export sales in 2024, benefiting from increased volumes due to U.S. licences granted to foreign partners, according to an internal document seen by Reuters.
The detection of zinc in Mars crude extracted off the coast of Louisiana forced the US government to draw on its strategic reserves to support Gulf Coast refineries.
Commissioning of a 1.2-million-ton hydrocracking unit at the TANECO site confirms the industrial expansion of the complex and its ability to diversify refined fuel production.