GOM Oil & Gas Disruptions Due to Hurricane Ida

[Raptor]

This article discusses the pipeline/transmission disruptions to GOM oil/NG production which accounts for 16% of the US Oil output. A key offshore transmission site was damaged and is off line until repairs are completed. 
https://www.insurancejournal.com/news/national/2021/09/21/633009.htm

Shell was the hardest-hit producer from Ida, which tore through the U.S. Gulf of Mexico last month and removed 28 million barrels from the market. The ongoing disruptions have hampered exports and raised crude prices, as Asian buyers searched for substitutes for the popular Gulf Mars grade.

Three weeks after the storm, about 40% of Shell's production from the offshore region is still offline. Shell is the largest U.S. Gulf producer with eight facilities pumping about 476,000 bpd, according to researcher Rystad Energy. Overall, the U.S. Gulf produces 1.8 million bpd, or about 16% of U.S. oil output.

The fields are a key source of Mars sour crude, a grade prized by oil refiners in the United States and Asia. Rystad analyst Artem Abramov estimated the lost production will remove 200,000 to 250,000 barrels per day (bpd) of Gulf of Mexico oil supply for several months.

"Disruptions are now having an impact on total available crude for export from the U.S., not just the offshore grades," said Krista Kuhl, an analyst with consultancy firm Facts Global Energy.

Mars prices had soared to a one-year high this month then eased as other oil supply constraints lifted.

What does this mean? Higher fuel prices and higher transport costs.