Gulf Oil Spill Shuts in 62,000 Barrels From Occidental, Others

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(Bloomberg) — Occidental Petroleum Corp, W&T Offshore Inc and Talos Energy are among oil drillers that shut offshore production following an oil spill that’s shaping up to be the largest in the US since the Deepwater Horizon disaster. 

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Gulf Oil Spill Shuts in 62,000 Barrels From Occidental, Others Back to video

Producers halted about 62,000 barrels of daily oil output Thursday after a subsea pipeline ruptured and leaked 26,000 barrels of oil — equivalent to two Olympic-size swimming pools — into the Gulf of Mexico near Louisiana. If the size of the leak is confirmed, it would be the largest spill since 2010, when BP PLC’s Deepwater Horizon rig blew up, dumping 3.2 million barrels of oil off the coast of the Pelican State. 

Other companies affected are Walter Oil & Gas Corp, Cantium LLC and Arena Offshore LLC, according to a statement from the US Coast Guard, citing data from the Bureau of Safety and Environmental Enforcement. None of the companies immediately responded to a request for comment. 

The companies are not allowed to restart pumping until the source of the leak is secured and appropriate repairs have been made, the Coast Guard said in a statement. The spill was first reported on Thursday, when pipeline operator Main Pass Oil Gathering Co. reported a drop in pipe pressure. It’s unclear if Main Pass is the source of the spill, as there are multiple operators in the area. However the Coast Guard has dubbed the incident as MPOG 11015, in reference to the company. 

If confirmed, the leak would be the 11th worst offshore spill in US history, according to Bloomberg calculations of government data. 

—With assistance from Kevin Crowley.