Shell PLC (NYSE: SHEL) disclosed yesterday that it is closely monitoring Tropical Disturbance 35 for potential impacts on its Gulf of Mexico operations.
Hence, as a precaution, the company plans to shut down production at the Stones and Appomattox fields.
Also, the company will evacuate non-essential personnel from the Mars Corridor.
Shell stated that it is in process of pausing some drilling operations safely, with no current impact on other production across the Gulf of Mexico.
As per Reuters, the U.S. National Hurricane Center reported that the system near the Gulf of Mexico has a 50% chance of developing into a cyclone within the next 48 hours.
Last month, Shell reportedly planned a 20% cut in its oil and gas workforce to extend cost-saving measures.
Investors can gain exposure to Shell via First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (NASDAQ: EIPX) and VanEck Natural Resources ETF (NYSE: HAP).
Price Action: SHEL shares are up 0.93% at $69.36 at the last check Monday.