Even though Gustav wasn’t as bad as feared, oil production was shut down for several days in the Gulf. It should start back up today.
Will the resumption of supply drive oil below $100? Not according to Goldman Sachs.
CNNMoney: As oil companies sent crews back to their rigs to perform in-depth safety checks some operations see production beginning to come online as early as Wednesday.
100% of crude oil production and 95.4% of natural gas production in the Gulf of Mexico remains shutdown, according to a report on the damage left in the wake of Hurricane Gustav by the U.S. Department of Energy.
Oil companies with infrastructure in the Gulf region such as Royal Dutch Shell (RDSA), Devon Energy Corporation (DVN, Fortune 500), Exxon Mobil (XOM, Fortune 500), and ConocoPhillips (COP, Fortune 500) all said they are in the process of returning workers to their offshore facilities Wednesday, but they cannot return their rigs to operability until safety checks are completed.
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