Gulf oil and gas producers give Ike a serious look

By The Associated Press

NEW YORK - Efforts to bring oil and gas production back online in the Gulf of Mexico slowed Sunday as hurricane Ike barrelled toward the U.S. energy complex, likely to be the second hurricane to slam into the Gulf in as many weeks.

Royal Dutch Shell said it would keep staffing at its offshore installations to a minimum as it monitors the storm, which was described as "extremely dangerous" by the U.S. National Oceanic and Atmospheric Administration on Sunday.

Other producers were also watching Ike. The storm could strike the U.S. coast by midweek.

"Offshore oil and gas operators in the Gulf of Mexico who are reboarding platforms and rigs and restoring production following hurricane Gustav are now starting to take precautions for hurricane Ike," the U.S. Minerals Management Service said Sunday.

The latest storm track indicates the hurricane could strike anywhere from Florida to Texas.

Ike is creating surges of as much as 5.5 metres above normal tide levels. Those swells will likely hit portions of the southeastern United States over the next couple of days.

More than a quarter of the personnel from the 717 manned platforms in the Gulf of Mexico have been evacuated and 10 of the 121 Gulf rigs have had staff removed, the U.S. Minerals Management Service said.

Nearly 80 per cent of all oil production in the Gulf, or about 1.3 million barrels a day, has been shut in, the MMS said. About 70 per cent of all natural gas production is off, or about 7.4 billion cubic feet.

Oil and gas producers have been sending workers back to platforms and rigs for the last several days in the wake of hurricane Gustav, which largely spared the U.S. energy complex. Power shortages have continued to hamper the restart of some refineries on the Gulf.

"It's impossible to say how much of that would have come back on line from hurricane Gustav if another hurricane were not headed for the Gulf," said MMS spokeswoman Caryl Fagot.