A Hurricane Ida wildcard: Effects on U.S. energy supply

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A Hurricane Ida wildcard: Effects on U.S. energy supply
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Energy companies have evacuated oil and gas platforms in the Gulf of Mexico ahead of Hurricane Ida, churning toward Louisiana's coast. But a far greater worry is potential damage to refineries and petrochemical plants in the storm's forecast path.

Vehicles head slowly east on the Interstate-10 twin spans leaving New Orleans while only a trickle of cars heads west back into the city before landfall of Hurricane Ida in New Orleans, Saturday, Aug. 28, 2021.

But a potentially more serious concern was the fate of refineries and petrochemical plants along the Mississippi River between Baton Rouge and New Orleans in or near the projected path of a storm whose maximum sustained winds were expected to reach 130 mph at anticipated landfall late Sunday.Louisiana’s 17 oil refineries account for nearly one-fifth of the nation’s refining capacity and can process.

Platts’ Joswick said any petroleum price impacts from Ida are likely to be most acute for gasoline but could be expected to return to pre-storm levels in one to three weeks.Phillips 66 was halting production at its refinery on the Mississippi just south of New Orleans in Belle Chasse, Louisiana, due in part to “the potential for storm surge,” said company spokesman Bernardo Fallas. It’s daily capacity is 250,000 barrels.

While refineries and petrochemical plants are generally built to withstand high winds, they are not necessarily prepared for high water, an increasing problem as global warming spurs higher rainfall amounts in big storms.

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