MOSCOW (MRC) -- Royal Dutch Shell Plc and Murphy Oil Corp began evacuating non-essential workers from the U.S. Gulf of Mexico because of the threat from Tropical Storm Cristobal, reported Reuters.
Shell said its production and drilling operations in the US-regulated northern Gulf were unaffected despite the evacuations.
Gulf Coast spot gasoline prices remained steady, traders said. Gulf CBOB gasoline traded on Thursday at 12.50 cents per gallon below the futures benchmark, little changed from Wednesday.
The storm’s impact on prices at the pump is expected to be limited because of the loss of demand from the COVID-19 pandemic, said an analyst with Gas Buddy.
“We aren’t expecting an impact on gas prices from Cristobal at this time given its relatively weak forecast,” said Patrick De Haan at Gas Buddy.
Five companies are removing workers from the Gulf because of Cristobal, which is forecast to pass through offshore oil production areas before striking the Louisiana coast by Monday, according to the US National Hurricane Center.
BP Plc said on Wednesday that workers were being evacuated as it shuts in production at its Thunder Horse, Na Kika and Atlantis platforms. The company is also pulling non-essential workers from the Mad Dog platform, but production was unaffected.
Norwegian state-oil company Equinor ASA and Occidental Petroleum Corp began evacuating non-essential workers on Wednesday. Equinor plans to shut the Titan platform on Friday, if necessary.
The Louisiana Offshore Oil Port LLC (LOOP), Exxon Mobil Corp , Chevron Corp and Hess Corp said their operations were normal.
The US Energy Information Administration expects the Gulf of Mexico to account for 15% of total US crude oil production in 2020.
As MRC wrote previously, Tropical Storm Cristobal forced ports to close in three states in Mexico's Bay of Campeche area June 3, although there has been no major impact on oil, gas or power generation infrastructure.
We remind that Royal Dutch Shell Plc restarted the crude distillation unit, coker and gasoline-producing cat cracker at its 225,300 barrel-per-day (bpd) Norco, Louisiana, refinery. Shell is restarting the hydrocracker, while the reformer and naphtha hydrotreater will remain shut for previously planned work, the sources said. The coker is scheduled to undergo planned work beginning next week, but is expected to remain in operation.
We also remind that Shell Singapore restarted its naphtha cracker in Bukom Island in early December 2019, following a two months maintenance shutdown since the beginning of October 2019. Thus, this cracker was taken off-stream for the turnaround on 1 October 2019. The cracker is able to produce 960,000 tons/year of ethylene and 550,000 tons/year of propylene.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC"s ScanPlast report, Russia's estimated PE consumption totalled 721,290 tonnes in the first four month of 2020, up by 4% year on year. Low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) shipments grew partially because of the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market totalled 347,440 tonnes in January-April 2020 (calculated by the formula production minus export plus import). Supply exclusively of PP random copolymer increased.
MRC