Shell shuts 5 Gulf of Mexico platforms ahead of storm

Shell has started shutting in production and evacuating all personnel from five offshore platforms in the Gulf of Mexico ahead of Tropical Storm Isaias. The affected facilities include Mars, Olympus, Ursa, Vito, and Appomattox.

Chevron is also shutting four offshore platforms while keeping five operating normally, and BP has reportedly begun evacuating staff from offshore facilities. Tropical Storm Isaias formed offshore Mexico on Wednesday and is forecast to make landfall on Saturday. Meteorologists expect it could strengthen into a hurricane by the end of the week, marking the first hurricane in an otherwise weaker-than-usual Atlantic season.

Offshore fields in the Gulf of Mexico represent about 15% of total U.S. oil production and 5% of natural gas output. Michael Brennan, director of the U.S. National Hurricane Center, warned earlier in the week of dangerous and life-threatening impacts along parts of the northern Gulf Coast starting Friday.

The platform shutdowns arrive alongside heightened tensions in the Persian Gulf, where intensified Iranian tanker attacks helped push oil prices up 2%. The storm also poses potential risks to Gulf Coast refineries that are running at maximum capacity during a global fuel crunch that has lifted retail fuel prices and refining margins to record highs.