Hurricane Ida hit New Orleans Sunday after cutting through the Gulf of Mexico, causing massive disruptions to U.S. oil production before making landfall.
More than 95% of the Gulf of Mexico’s oil production facilities have been shut down, regulators said Sunday, indicating the massive storm is having a significant impact on energy supply.
Six refineries in the New Orleans area — including PBF, Phillips, Shell, Marathon and two Valero refineries — are shut down right now, Andy Lipow, president of Lipow Oil Associates, a Houston-based consulting firm, told CNN Business. “It’s now a waiting game to assess whatever wind and flooding damage will be caused as the hurricane passes through the area.”
The location of Hurricane Ida’s landfall is “one of the worst possible for the oil industry” and it could impact the major pipelines that carry fuel from the Gulf Coast to the East Coast markets, Lipow said. The shuttered six refineries “account for about 1.7 million barrels per day of refinery capacity, representing 9% of the nation’s total,” he said.