Ida sloshes ashore, US Gulf oil operations recover

By Kelli Dugan

MOBILE, Alabama (Reuters) - Ida dwindled to a tropical depression on Tuesday after crawling ashore in Alabama from the Gulf of Mexico, and oil operations in the Gulf were quickly returning to normal after being widely disrupted by the storm.

Ida, which at its peak had been a late-season Category 2 hurricane, made its first U.S. landfall at Mobile, Alabama. As it brought rain inland, it appeared to cause only limited flooding and minimal power outages.

Gulf of Mexico oil and natural gas companies, many of which carried out evacuations of personnel and shutdowns as Ida passed on Monday, were restoring operations on Tuesday.

Giant energy facilities in the Gulf like the Louisiana Offshore Oil Port and the Independence Hub hoped to restore operations late on Tuesday or early on Wednesday, according to owners and operators.

The storm on Monday had shut down almost 30 percent of Gulf of Mexico oil production and nearly 28 percent of gas output.

Crude oil prices, which jumped $2 per barrel on Monday as Ida churned through the Gulf, dropped on Tuesday as the reports of quick restarts by oil companies arrived.

"Ida has lost tropical characteristics and its winds are expected to slowly diminish during the next day or so," the Miami-based U.S. National Hurricane Center said.

DIMINISHING INTENSITY