Shell Curtails Production At Appomattox, Mars, Vito, Ursa, And Olympus Due To Downstream Issues From Hurricane Francine; Drilling At Whale Asset Remains Paused With Operations Set To Begin Later This Year; Damage Assessments Underway, Offshore Personnel Safe; Redeploying Personnel To Perdido Asset, While Production At Perdido, Auger, And Enchilada/Salsa Remains Shut In, With Plans To Bring Staffing Back To Normal Levels
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Shell has reduced production at several of its assets due to downstream issues caused by Hurricane Francine. Drilling at the Whale asset is paused, with operations expected to resume later this year. Damage assessments are ongoing, and offshore personnel are safe. Shell is redeploying personnel to the Perdido asset, while production at Perdido, Auger, and Enchilada/Salsa remains shut in.
September 12, 2024 | 2:51 pm
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NEUTRAL IMPACT
The United States Oil Fund (USO) may experience volatility due to Shell's production curtailment at key assets following Hurricane Francine. This could impact oil supply and prices.
Shell's production issues could affect oil supply, potentially impacting oil prices. However, the direct impact on USO is less certain, as it depends on broader market reactions and other supply factors. Thus, the short-term impact on USO is neutral.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Shell has curtailed production at several assets due to Hurricane Francine, affecting operations at Appomattox, Mars, Vito, Ursa, and Olympus. Drilling at Whale is paused, with plans to resume later this year. Personnel are being redeployed to Perdido.
The production curtailment at multiple assets due to Hurricane Francine is likely to negatively impact Shell's short-term output and revenues. The pause in drilling at the Whale asset and the redeployment of personnel indicate operational disruptions. These factors are expected to exert downward pressure on Shell's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100