New Orleans, La. (AP / WNCN) – A hurricane with strong winds and floods on the coast of Louisiana on Sunday could damage the Gulf economy and cause economic consequences beyond the region.
The Gulf is not only a major base for oil and natural gas companies but also an important hub for the country’s chemical and shipping industries.
Companies left oil and gas stations south of Louisiana before the storm. But the biggest concern was the damage to filters and petrochemical plants on the road from floods and hurricanes.
An estimated 300 beach platforms in the Gulf of Mexico – or more than half of them with artificial platforms – have been evacuated before the storm, and production has been suspended, the U.S. Department of Homeland Security said on Sunday.
Floating guns were also cleared. Overall, more than 95 percent of the Gulf’s oil and gas production has been cut off, the agency said on Sunday.
“About 95.65 percent of operator reports have been shut down in the Gulf of Mexico,” the agency said.
A more serious concern, however, was that the strongest hurricane, near the Mississippi River between the Mississippi River and the Mississippi River between New Orleans, was hitting 150 miles per hour.
Louisiana’s 17 refineries hold about one-fifth of the country’s refining capacity and can process up to 3.4 million barrels of crude oil per day, according to the Energy Information Administration. Many are at risk of flooding. EIA Ida can affect local energy supply – especially transport fuel and electricity.
A less vague domestic oil supply could be affected. US daily oil consumption is at least 20 million barrels. Analysts say that while the SNP Global Platform could stop producing 765,000 barrels a day in the Gulf.
It was not immediately clear how many filters and petrochemical plants could be shut down.
After the storm, the U.S. Bureau of Environmental Protection said it would inspect facilities and return any damaged products immediately.
Phillips 66 was shutting down production at a refinery in Belize Chase, Louisiana, Mississippi, south of New Orleans, said Bernardo False, a spokesman for the company. It has a daily capacity of 250,000 barrels.
Exxon Mobil, meanwhile, continues to work on the Baton Rouge refinery, which produces about 520,000 barrels of crude oil per day, and Chevron has shut down operations at the Mississippi River and the Gulf and related pipelines. LL, Marathon and Valero also have factories that are close to the hurricane route.
“Industries have probably been through this for the last few decades,” said Peter McNelli, a power analyst at the Third Bridge. A year ago, several refineries west of Lake Charles were damaged by a hurricane.
Jeff Masters Ida, a meteorologist who flies for government hurricane missions and subterranean meteorology, is predicted to cross into “the worst place for a hurricane.”
Although refineries and petrochemical plants are generally built to withstand high winds, they are not necessarily ready for high water, as global warming increases the amount of precipitation in large storms.
The McNelly industry is particularly concerned about flooding, which will cause severe damage in Hurricane Harvey in the Houston area, where petroleum products were dumped in 2017 on flood tanks and chemical plants.
“Louisiana is low and you are vulnerable to flooding. “These things are built to withstand the winds, but they are flooded. You have a harder time resisting.”
Sixty percent of the gasoline used on the East Coast is shipped from the Gulf Coast, mostly through the colonial pipeline along the hurricane route.
In addition to oil production, Louisiana accounts for 9 percent of US natural gas production. Last year, the state’s two liquid natural gas export terminals exported about 55% of US LNG exports, according to the Energy Information Administration.