Shell Braces For Tropical Storm 35: Prepares Major Gulf Of Mexico Oil Fields For Shut Down
Portfolio Pulse from Lekha Gupta
Shell PLC is preparing to shut down its Stones and Appomattox oil fields in the Gulf of Mexico due to Tropical Disturbance 35. The company will also evacuate non-essential personnel from the Mars Corridor and pause some drilling operations. The U.S. National Hurricane Center reports a 50% chance of the disturbance developing into a cyclone. Shell's shares are up 0.93% at $69.36.
September 23, 2024 | 1:59 pm
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NEGATIVE IMPACT
Investors can gain exposure to Shell through the First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (EIPX). The ETF may be impacted by Shell's precautionary shutdowns in the Gulf of Mexico.
As EIPX provides exposure to Shell, the ETF may see a negative impact due to Shell's production disruptions in the Gulf of Mexico.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
VanEck Natural Resources ETF (HAP) provides exposure to Shell, which is shutting down Gulf of Mexico operations due to Tropical Disturbance 35. This may affect the ETF's performance.
HAP's exposure to Shell means it could be negatively affected by Shell's operational disruptions in the Gulf of Mexico.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Shell is shutting down its Stones and Appomattox fields in the Gulf of Mexico due to Tropical Disturbance 35, with a 50% chance of cyclone development. This precautionary measure includes evacuating non-essential personnel and pausing some drilling operations.
The shutdown of major oil fields and evacuation of personnel due to a potential cyclone is likely to disrupt Shell's production in the short term, negatively impacting its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100