U.S. offshore oil output inches back as infrastructure woes slow recovery

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U.S. offshore oil output inches back as infrastructure woes slow recovery
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Over 1.4 million barrels per day of oil and 1.88 billion cubic feet per day of gas production remained shut on Wednesday in the U.S. Gulf of Mexico after Hurricane Ida lashed Louisiana's coast, the Bureau of Safety and Environmental Enforcement said.

The shut-ins, equivalent to 80% of U.S. Gulf crude production and 83% of U.S. Gulf natural gas output, have been lengthier than typical after a storm as severe power outages, flooding and other damage from Ida's 150-mph winds have complicated energy companies' efforts to resume operations.

About 1.7 million barrels per day of refining capacity, several pipelines, terminals and ports also remain out of service after Ida. More than two dozen oil tankers scheduled to discharge imported crude for Louisiana refineries or load oil for exports anticipate delays, according to tanker tracking data and shipping sources.

"Due to the size and strength of Ida, it will take operators some meaningful time to assess any damages before sending personnel back offshore," said Mfon Usoro, senior energy analyst at Wood Mackenzie.

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