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Gulf Oil: Isaac Forces Companies To Pull Back Production During Storm

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Oil companies scrambled out of the path of Tropical Storm Isaac, withdrawing offshore workers and cutting oil and gas production in the Gulf of Mexico.

By mid-day Sunday, the U.S. government said that daily oil production in the Gulf was down 24 percent and natural gas production was off 8 percent.

Isaac, already carrying winds of more than 60 miles an hour, was expected to cross the Florida Keys by late afternoon. The storm will likely pick up strength and strike as a dangerous Category 2 hurricane somewhere between New Orleans and the Florida Panhandle on Wednesday.

Noting that the storm was moving west and threatening to grow more powerful, energy giant BP evacuated all its installations and temporarily halted production in the Gulf Sunday.

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