Storm shuts offshore oil port and hits shipping

NEW YORK (Reuters) – Tropical Storm Edouard, the second named storm to threaten oil operations in the Gulf of Mexico so far this year, forced shut a huge offshore oil port, closed the Houston Ship Channel, and prompted at least two companies to evacuate staff from their offshore platforms.

So far, however, energy companies reported no production slowdowns as a result of the foul weather. The Gulf of Mexico supplies about a quarter of the nation’s crude oil and 15 percent of its natural gas, while refiners along the coast produce about a quarter of domestic gasoline.


Crude oil prices dipped 70 cents early Monday to $124.40 a barrel, extending a steep decline from the July 11 record over $147.

Edouard, with winds of 50 miles per hour (85 kph), moved across the northern Gulf of Mexico about 80 miles south-southwest of Grand Isle, Louisiana, threatening to come ashore on the Texas-Louisiana coast at near-hurricane strength by Tuesday.

The Louisiana Offshore Oil Port, the only deep-water U.S. oil port and a major conduit for the country’s crude oil imports, said it temporarily suspended offloading oil tankers in the Gulf of Mexico due to high waves and winds.

Reuters