Ida assesses damage to oil industry after hurricane destroys Louisiana

Ida companies were assessing the health of refineries, pipelines, petrochemical plants and coastal oil fields near the Gulf of Mexico, the day after Ida Louisiana was hit by a Category 4 hurricane.

Extreme levels of flooding and power outages, which have affected more than a million customers across the country, could lead to gas stations operating along the Mississippi River this week after assessing the damage, analysts said.

Companies including Marathon Petroleum Corporation

, Valero Energy Corporation

, Phillips 66 and Royal Dutch PLC closed off the country’s refining capacity by approximately 8% before the storm. Corporation

In Baton Rouge, he closed some rooms with chemicals and complex filters, but said there were no major flood damage.

“There is still no transparency in the region’s energy supplies,” said Tom Clolo, head of the Oil Price Information Service or OIP Global Energy Analysis. Southeastern parishioners with many large refineries say they will not return to the grid for weeks, which is a serious matter.

In the coming days, companies will be careful to determine whether floods, wind or other Ida influences have damaged the integrity of their offices or caused environmental hazards.

Hurricane Ida Louisiana hit New Orleans as a Category 4 hurricane. The hurricane is testing a $ 14.6 billion system, including stairs and flood walls, and hospitals are flooded with VV-19 patients. Photo – Eric Gay / Associated Press

According to the European Harvey, major hurricanes caused severe damage to industrial plants in the past, when the main source of energy for the chemical plant, Arkema, collapsed. S.A.

Near Houston. The plant caught fire and exploded after a hurricane.

A.D. In the wake of Hurricane Katrina in 2005, hundreds of thousands of gallons of oil spilled out of the tank, which was then owned by Murphy Oil. Corporation

, Some pouring into neighborhoods near New Orleans.

Marathon 565,000 barrels per day in Garville, LA. After the Excon confirmed that it had acquired warehouses and third-party facilities to “stabilize our systems,” he said, the Baton Rouge Factory would resume operations.

Phillips 66 said the 255,000 barrels per day in Belle Chase, La, were still closed Monday night and that the facility was receiving water. Ida plans to investigate the impact “when it is safe to do so.”

Gasoline futures rose 4.3% overnight, but profits rose by 1.6% on Monday. Average U.S. gasoline prices are expected to have a small impact on the storm, possibly up to 5 to 10 cents per gallon, analysts say, following Katrina and Harvin’s inflation.

The average price of a gallon of US dollars fell by less than 1 cent to $ 3.15 on Monday, and prices in Louisiana have plummeted.

Prolonged shutdown due to flooding and other delays in the supply chain could increase pump prices, at worst, by 15 to 25 cents per gallon, said Patrick de Han. Fuel and price tracking GasBuddy.

“Filters have adapted to wind speeds,” said Mr. de Haan. What they can’t do is build and plan for 12 to 24 inches of rain.

According to a report by Gas Buddy, 10% of gas stations near Baton Rouge, near 7.5% of New Orleans, did not have gas at the weekend. As Ida passes, those numbers are expected to worsen, and it could take a week or two for state supplies to recover in the worst-hit areas of the state, Mr. De Han said.

Ships were ahead of the hurricane on Continental, La, on the Mississippi River on Saturday.


Photo

Luke Sharett / Bloomberg News

All told, the estimated 4.4 million barrels of refining capacity was on Ida Street, according to S & P Global Market Intelligence, approximately one-quarter of the total. The company also had petroleum facilities with a capacity of 6.5 million tons per year, and ethylene was exposed to storms.

Down Inc.

He says he owns petrochemical plants in Louisiana and has closed production over the weekend. Other companies with chemical operations on Ida Road include Westlake Chemicals Corporation

And Nova Chemicals Corporation according to S&P Global Market Intelligence.

Increasing distrust is a time of recovery for major power failures across the state. Entertainment Corporation

, Louisiana’s main energy supplier, said the eight power transmission lines to New Orleans had collapsed on Sunday, leaving the generation offline and leaving the city in the dark. According to poweroutage.us, more than a million customers went missing in Louisiana on Monday.

Interggi said it had workers in at least 22 states ready for recovery, but warned that the outbreak could last for weeks in areas hardest hit by the storm. The company said on social media on Monday that it would take “a long time” to determine the damage caused to Ida’s power grid in New Orleans and “restore electricity to the region.”

Prior to the hurricane, the Mississippi River shut down a nuclear power plant 25 miles west of New Orleans. On Sunday, he lost power outside the station and relied on emergency diesel generators.

Colonialists say they expect two key routes to return online on Monday night, following damage assessments and security checks. The colony operates more than 100 million gallons of oil a day on the 5,500-mile pipeline from the Gulf Coast to Linden, NJ.

The plant also sends gasoline from the region to the east coast and still works, but Kinder Morgan Inc.

The terminal in Baton Rouge has lost power, which could affect the pipeline until Monday or Tuesday. He said the company was examining the extent of the damage to its facilities in Baton Rouge and was determining the need for repairs.

Pipeline operator Enrique Encryption said it had mobilized staff to assess any damage to the facilities or nearby areas.

In the Gulf of Mexico, coastal oil companies, which account for 17% of U.S. oil production and 5% of natural gas production, have completely shut down their production streams and left more than half. , According to a report from the Bureau of Safety and the Environment on Monday.

That was 1.72 million barrels of oil per day and 2.1 billion cubic feet of natural gas per day offline.

He said he was scheduled to fly to the four main coastal areas to assess the storm on Sunday afternoon.

Write Collin Eaton at collin.eaton@wsj.com and Jennifer Hiller at jennifer.hiller@wsj.com

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