Oil Companies Begin to Restart Oil Production Operations in the Gulf

Oil production activities have started to resume as workers return to the Gulf of Mexico’s offshore exploration and production rigs. These sites were abandoned with the approach of Hurricane Isaac. As of last week, over 94 percent of the Gulf’s daily production of oil had been shut in. However, it is expected that production will be back very soon.

Companies have already started to deploy their workers back to the location, and figures are anticipated by the end of the current week. According to BP, early aerial inspection did not show any major harm to facilities in offshore locations. Recently, specialists conducted a thorough on-site inspection of these facilities as workers started to come back.

According to the federal Bureau of Ocean Energy Management, 499 out of the 596 oil and gas production platforms were evacuated while the Hurricane was approaching. At about the same time, 48 out of the Gulf’s 76 oil and gas drilling rigs were also evacuated.

A sharp rise in the prices of gasoline came with Isaac, even though the increase immediately ended with the movement of the storm away from the inland. The nationwide gasoline price average gained by only 0.3 cents to end at $3.83 a gallon.

However, prices at the pump were already increasing even prior to Isaac’s arrival. The average price of gas gained around 40 cents starting July until the middle parts of August due to refinery challenges in the West Coast and Midwest and the very high prices of crude oil.

The current crude prices have been ranging within $94 to $97 for a couple of weeks after increasing from their low level of $77 per barrel, seen in the latter parts of June.

The crude price per barrel of the U.S. benchmark during the close of the trading last week gained $1.85 to finish at $96.47 after a speech from the Federal Reserve Chairman clarified that the central bank will exert more effort to restore the economy of the United States. Meanwhile, Brent North Sea, traded primarily on London’s ICE market, moved higher by $1.92 to $114.57.