Shell Expects Damage of Hundreds of Millions from Hurricane Ida

Oil and gas group Shell thinks Hurricane Ida will have a negative effect of hundreds of millions of dollars on its third-quarter results. That hurricane hit the southern United States in August.

 

As a result, a large part of the oil production in the Gulf of Mexico came to a temporary standstill.

Shell estimates the impact at approximately $400 million. That amount would then be deducted from the profit that has been adjusted for, among other things, taxes. In addition, many oil rigs were shut down by the hurricane. This was due, for example, to damage to pipelines and landing sites for helicopters to transport workers to the oil rigs. Staff also had to be evacuated.

How Shell performed across the board last quarter will not be disclosed until later this month. Apart from the damage from Ida, Shell has probably had a strong period. Both oil and gas prices have risen sharply in recent times due to strong demand following the recovery from the crisis.

In the first half of the year, Shell also improved a lot thanks to the pick-up in prices. The contrast with the start of the corona crisis was therefore enormous. At that time, Shell lost many billions of dollars because there was much less demand for oil and gas at the time and oil prices temporarily collapsed.

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