Shell PLC (SHEL) is closely monitoring Tropical Disturbance 35, a potential storm brewing in the Gulf of Mexico, and has taken proactive measures to safeguard its operations. As a precaution, the company has announced the shutdown of production at the Stones and Appomattox fields. Additionally, Shell will be evacuating non-essential personnel from the Mars Corridor. While other production facilities in the Gulf of Mexico remain unaffected, Shell is pausing some drilling operations to ensure the safety of its workforce.
The U.S. National Hurricane Center has reported that the system near the Gulf of Mexico has a 50% chance of developing into a cyclone within the next 48 hours. This comes just after Shell announced a 20% cut in its oil and gas workforce last month as part of cost-saving measures.
Investors seeking exposure to Shell can consider investing in the First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (EIPX) and VanEck Natural Resources ETF (HAP).
As of Monday’s trading, SHEL shares are up 0.93% at $69.36.
This situation highlights the potential impact of weather events on energy companies and their operations. It’s crucial for companies like Shell to take timely and necessary steps to protect their assets and personnel in the face of such threats. The company’s proactive approach demonstrates its commitment to safety and responsible operations.
