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The 2024 hurricane season was relentless, and it took U.S. energy infrastructure along for the ride. Above-average storm activity—18 named storms, five of which were major hurricanes—created disruptions in electricity markets and oil and gas production in the Gulf of Mexico.
Hurricanes Helene and Milton, both Category 3 storms, were the heavy hitters. Making landfall on Florida’s Gulf Coast in late September and early October, they wreaked havoc on power grids, petroleum supply chains, and inland states as they barreled north. While the paths of these storms largely spared the most prolific offshore oil and gas hubs near Texas and Louisiana, precautionary shutdowns were employed.
By September, crude oil production losses averaged 295,000 barrels per day—16% of the Gulf’s federal output—while natural gas saw 0.20 billion cubic feet per day offline, or about 11% of production according to a new report from the Energy Information Administration released on Tuesday. November’s Hurricane Rafael, though weakened as it reached key production areas, still disrupted operations, forcing 482,790 barrels of oil and 310 million cubic feet of gas to be shut in. At the time, futures responded accordingly, with natural gas prices jumping over 10% to $2.94/MMBtu as markets absorbed Rafael’s toll.
The energy industry ultimately proved resilient, with operators quickly bringing platforms back online post-storm. However, Rafael alone displaced two drilling vessels, and nearly 10% of manned platforms remained evacuated for days. Total production losses reached a hefty 2.07 million barrels of oil and 1.12 Bcf of natural gas.
While disruptions stayed temporary, the region’s vulnerability was apparent. Henry Hub spot prices are already forecast to hover higher in 2025, with the EIA predicting Q1 averages at $3.16/MMBtu.
