Hurricane Ida hit the oil industry as it made its way to New Orleans

Superintendents in the Gulf of Mexico say more than 95 percent of the country’s oil production facilities have been shut down, according to regulators.

Andy Lipou, president of Leopot Oil Associates, a Houston-Olson company, told CNN that six refineries in the New Orleans area, including the PFF, Phillips, LL, Marathon and two Valero filters, are currently closed. It is now a backup game that assesses any wind and flood damage as the storm passes.

Hurricane Ida is “one of the most difficult for the oil industry” and could affect major pipelines from the Gulf Coast to the East Coast markets, Lipou said. “The closed refineries hold a capacity of 1.7 million barrels per day, representing 9% of the nation,” he said.

Three other refineries in the area – Exxon, Plasid and Crash Springs – are in the Baton Rouge area. “These three filters hold about 700,000 barrels a day, which is approximately 3.5% of US daily consumption,” Lipo said.

On Saturday, the Bureau of Safety and Environmental Protection (BEEE) mobilized the storm response team and prepared for the storm. The agency said it was monitoring the release of marine oil and gas operators’ platforms and disposal in the Gulf. By Saturday morning, crews had been evacuated from 288 beach venues. It represents 51% of man-made facilities in the Gulf of Mexico, according to operator reports to BSA.

In order to resume operations after the storm, producers must return workers, assess damage and repair and renovate facilities, Lipo said. But these initiatives take time, especially in the current context.

Extreme oil shortages at one of the largest power plants in the United States could increase prices. US oil prices rose sharply last week before Ida’s arrival. Trading for oil is set to begin at 5pm on Sunday.


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