Hurricane Milton Triggers Navigation Restrictions and Oil Facility Closures in Florida

As Hurricane Milton intensified, at least one oil and gas platform in the U.S. Gulf of Mexico was shut down, and Florida ports-imposed vessel navigation restrictions, according to the several media reports. While much of the energy infrastructure along the Gulf Coast, including oil production facilities, LNG plants, and refineries, is expected to be safe from the storm, the closure of terminals could disrupt exports and imports temporarily.

Florida was the sixth-largest exporter of goods in the U.S. last year, according to the Office of the U.S. Trade Representative. Meteorologists have issued serious warnings about Milton's potential impact, forecasting storm surges of 10 to 15 feet, wind gusts up to 140 mph, and the possibility of more than 2 feet of rain along the Gulf Coast, particularly near Tampa, where the storm is expected to make landfall. The National Hurricane Centre (NHC) has classified Milton as a potentially catastrophic Category 5 hurricane, raising alarms about its threat to life and property.

In preparation, President Joe Biden approved an emergency declaration for Florida, allowing for the mobilization of federal resources to assist in response efforts. The White House urged residents in the storm's path to make immediate preparations for safety. Duke Energy is mobilizing approximately 10,000 responders throughout Florida, anticipating more than 1 million power outages linked to Milton’s approach. The company is emphasizing the need for residents to prepare for potential disruptions to electricity services and to have emergency plans in place.

As the hurricane draws nearer, local authorities and emergency management teams stress the importance of safety and preparedness. Residents are advised to secure their homes, stock up on essential supplies, and stay informed about the storm’s progress. The combination of high winds, heavy rainfall, and storm surge poses significant threats to life and property, highlighting the critical nature of emergency preparedness.

U.S. energy producer Chevron announced on Monday that it has evacuated all staff from its Blind Faith platform in the Gulf of Mexico and shut down operations at the facility. Located 160 miles southeast of New Orleans, Blind Faith is Chevron's deepest water development, producing oil from four wells and featuring flow lines that transport crude oil and gas to a platform anchored in 6,500 feet of water. This decision was made as a precautionary measure in response to Hurricane Milton, emphasizing Chevron's commitment to safety.

Despite the shutdown of the Blind Faith platform, Chevron reported that production from its other Gulf of Mexico assets remains normal. Meanwhile, Woodside Energy is actively monitoring weather conditions and plans to implement a response strategy if necessary.

As Milton approaches, the ports of Cedar Key and Sand Key in Florida have closed to vessel traffic, and Key West is preparing to shut down operations early on Tuesday. The U.S. Coast Guard has imposed navigation restrictions at nearly all remaining ports in Florida, including Miami, Port Everglades, Tampa, and Jacksonville. However, ports in Mississippi and Alabama, such as Pascagoula and Mobile, remain open, which handle oil and fuel imports and exports. Although most LNG facilities along the Gulf Coast are expected to be out of the storm's path, the U.S. continues to export limited volumes of LNG in ISO containers from the ports of Miami and Fort Lauderdale, illustrating the industry's efforts to navigate the challenges posed by Hurricane Milton while maintaining essential energy supply chains.