Natural Gas futures pulled back significantly during early Monday trading as it still continues to process the severity of the Hurricane Ida that disrupted Louisiana coast. The massively disrupting hurricane caused landfall all across the Louisiana coast in just the span of weekend.Major players reported the downslide in futures as well as production over the weekend. Through Saturday to Sunday, all the eight transmission lines have been completely shut down. These transmission lines typically deliver power to New Orleans. After the catastrophic Ida, these lines were rendered out of service.
According to the Bureau of Safety and Environment Enforcement (BSEE), the Natural Gas production reported on Sunday declined significantly. Nearly 93.75% of the total Natural Gas that is produced before Ida by Gulf of Mexico had been shut down. Meanwhile 95.65% of the oil produced offshore has also been forced to stop.
The fatal hurricane has been escalating rapidly, flooding continuously over regions of Louisiana, southern Alabama, and southern Mississippi. Ida has cause substantial uncertainty in the Natural Gas sector. The production fell drastically, and poses a threatening situation for the industry.