Shell’s Crux project set to enter commissioning stage

Hurricane Isaias has forced the shutdown of 63% of U.S. Gulf offshore oil output, according to the Marine Minerals Administration. This includes 1.28 million barrels of daily oil production and 1.13 billion cubic feet of natural-gas production. Shell and Chevron have evacuated personnel and halted operations at several Gulf facilities. The storm may impact fuel prices in Texas, where gasoline averages $3.87 per gallon.

Shell CEO Wael Sawan reported that Middle East oil flows have recovered to 80% of pre-war levels, crediting producing countries' efforts. He cautioned that supply remains tight and risks persist, including potential refiners' shortages. Goldman Sachs expects Brent crude to trade between $80-90/barrel until the conflict ends.

Shell plc's Q3 2026 outlook shows increased Integrated Gas production (740,000-780,000 boe/d) but lower LNG volumes (7.2-7.6M tonnes). Upstream production is expected at 1.74-1.84M boe/d, with $300M in exploration write-offs. Refining margins are projected to rise to $42/barrel. The company also announced new exploration acquisitions in the U.S. and Brazil.

Hurricane Isaias has led to the shutdown of 62.9% of Gulf of Mexico oil production (1.28M barrels/day) and 57.4% of natural gas output. Operators like Shell and Chevron have evacuated platforms. The storm is expected to strengthen before landfall, causing potential port disruptions.

Shell (LSE:SHEL) raised its Q3 2026 production guidance for gas and upstream operations. The company's shares have gained 19.96% over 90 days and 32.20% year-to-date, closing at £36.48. Analysts debate whether the share price surge is justified by the guidance upgrade and record refining margins, or if falling revenue and net income growth are concerning. The most popular narrative suggests Shell is 7.1% undervalued, with a fair value estimate of £39.27.

Hurricane Isaias is disrupting Gulf oil production, with Chevron and Shell shutting down some sites, affecting 25% of Gulf output. Rising oil prices, driven by global tensions, may worsen due to the storm. U.S. gasoline prices averaged $4.36, up 21 cents in a month, with potential short-term spikes expected. Analysts warn of long-term refining capacity issues due to geopolitical conflicts.