Hurricane Ida is set to cause a surge in fuel prices after the Category 4 storm forced the closure of almost 95 percent of oil and gas ref...
Hurricane Ida is set to cause a surge in fuel prices after the Category 4 storm forced the closure of almost 95 percent of oil and gas refineries along the Gulf Coast.
Shell, Valero Energy and Marathon Petroleum were among those who suspended operations before the hurricane made landfall in Louisiana and Mississippi on Sunday. Colonial Pipeline Co. also closed two crucial pipelines that transport fuel to the East Coast of the United States.
While the pipelines and many plants have now resumed production, Exxon Mobil Corp's 520,000 barrel-a-day oil processing and chemical complex in Baton Rouge remains shuttered as of Tuesday morning. A company spokesperson stated the closure was 'due to lack of power and raw materials'.
Meanwhile, Phillips 66's 255,000 barrel-a-day refinery in Belle Chasse also remains closed The facility has taken on water, according to the Wall Street Journal, and bosses have not yet surveyed the plant citing safety concerns.
The outages could help push retail gasoline prices up 25 cents per gallon with processing halted, tracking firm GasBuddy told Reuters. However, some say costs at the petrol pump could go even higher if operations at all refineries do not resume at normal rates in the coming days.
'There's no clarity,' around power supplies in the region as of yet, said Tom Kloza, global head of energy analysis for Oil Price Information Service, told the Journal. 'If they say the southeastern parishes [in Louisiana] that house a lot of big refineries aren't going to be back on the grid for weeks, it's a much more serious event.'
The average US price for a gallon of regular was reported at $3.15 on Monday, up from an average of $2.16 in January, according to the U.S. Energy Information Administration.
In Louisiana, residents have reported long lines at gas stations. One video shared on social media Tuesday showed cars banked up for blocks in New Orleans waiting to reach a gas pump.
Before the Ida even made landfall, there was a rush on gas stations. By the weekend, almost 10 percent of gas stations in New Orleans and Baton Rouge were reportedly running dry.
Ida has now weakened to a tropical storm and is plowing northeast. It is currently moving across Alabama and is expected to move up through West Virginia, Maryland and New Jersey by Thursday before showering New York on Friday.
Fears of the price surge comes as:
- Louisiana's Lt. Governor Billy Nungesser warned that the death toll from Ida was likely to climb above the five fatalities already reported
- New details emerged about the moment a 71-year-old man was eaten by an alligator lurking in floodwaters caused by the storm
- Estimates of Hurricane Ida's damage bill surged up to $80 billion
- The National Weather Service issued a heat advisory for Louisiana and Mississippi for Tuesday, prompting fears for one million residents expected to suffer through scorching temperatures without air conditioning
- Staff at one hospital near New Orleans were forced to manually pump air into the lungs of intubated Covid patients after the building lost power
- Officials anticipated a drastic spike in COVID cases, with the storm creating a 'perfect petri dish' for spread of the virus
Pandemonium at the pump: Hurricane Ida is set to cause a nationwide surge in fuel prices after Hurricane Ida forced the closure of almost 95 percent of oil and gas refineries along the Gulf Coast. Cars are pictured lining up at a New Orleans gas station on Monday
Residents wrapped around the corner of this Chevron station in New Orleans on Monday night trying to stock up on fuel
Locals are pictured filling tanks at a Chevron after lining up for hours to get to the pump
Before the Ida even made landfall, there was a rush on gas stations. By the weekend, almost 10 percent of gas stations in New Orleans and Baton Rouge were reportedly running dry
Floodwater fills an area at a refinery where flaring was taking place the morning after Hurricane Ida in Norco, Louisiana
A gas station is seen destroyed by Hurricane Ida in Houma, Louisiana after the storm moved through on Sunday night
Before the Ida even made landfall, there was a rush on gas stations. By the weekend, almost 10 percent of gas stations in New Orleans and Baton Rouge were reportedly running dry. Cars are seen lining up for hours to get gas in Mississippi on Saturday
Ida has now downgraded to a tropical storm and is passing through northeast Louisiana. She is expected to move across West Virginia, Maryland and New Jersey by Thursday before showering New York on Friday and eventually moving
Flood watches and warnings are in effect for wide swaths of the Ohio and Tennessee Valleys as well as Appalachia and the Northeast
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