Royal Dutch Shell on Wednesday updated its third quarter outlook, revising down its maximum production level by around 6% due to damages from recent hurricanes that brought production in the Gulf of Mexico to a halt.
The company expects third-quarter production to be between 2.15 million and 2.25 million barrels of oil equivalent a day (boed), compared to the previous estimate of between 2.10 million and 2.40 boed.
The company also expects its daily production levels to decrease by between 60,000 and 70,000 barrels per day because of hurricanes in the Gulf of Mexico, according to an updated statement on the third quarter 2020 outlook, which was released on July 30.
The Gulf of Mexico had been threatened by four tropical storms and hurricanes since late August, forcing some energy companies to pull workers from offshore platforms and shut down oil production.
In another statement on Wednesday, the company also announced plans to cut 7,000 to 9,000 jobs as part of the company’s cost-saving measures to mitigate the negative impact of the novel coronavirus (COVID-19) on weak global oil demand and low oil prices.
By Sibel Morrow