Gordon weakens to tropical depression after shutting in 9% of GOM production

BOSTON (Bloomberg) -- Gordon was rapidly weakening to a tropical depression after coming ashore near the Alabama-Mississippi border late Tuesday and killing at least one person while knocking out power to thousands.

The storm, with top winds of 35 mph, was swirling toward the northwest, the U.S. National Hurricane Center said in an advisory at 8 a.m., New York time. The storm is forecast to cross Arkansas and move into the Midwest where it will fall apart later this week. A child was killed in Pensacola, Florida, as winds blew a tree onto a mobile home, the Associated Press reported.

While the storm threatens to cause flooding and rains along the coasts of Mississippi and Alabama this week, the potential damage may be limited. Fewer than 45,000 customers were without power, according to a Bloomberg survey of utilities. Gordon earlier prompted officials to declare a state of emergency in Louisiana and triggered evacuations from offshore oil and gas rigs.

“Heavy rain is the main issue,” said Jeff Masters, co-founder of Weather Underground, in Ann Arbor, Michigan. “There will be heavy rainfall, flash flooding for the next few days along the trajectory of the storm.”

As Gordon moved through the Gulf of Mexico Monday and Tuesday, it shut in about 9% of both oil and natural gas production. It also forced the evacuation of 54 production platforms or about 8% of the 687 in the region, according to the Bureau of Safety and Environmental Enforcement.

The region produces about 5% of U.S. natural gas and 17% of crude oil, according to the Energy Information Administration. In addition, onshore facilities account for about 45% of U.S. refining capacity and 51% of its gas processing.

Forecasters are now watching Hurricane Florence, which is currently in the middle of the Atlantic but may come close to the U.S. East Coast next week. In the Pacific, Hurricane Olivia may also get near Hawaii.