NEW YORK — The energy industry braced Wednesday for catastrophic storm surges and winds as Hurricane Laura cuts a dangerous path toward the coastlines of Texas and Louisiana. Oil and gas producers have evacuated platforms and rigs in the Gulf of Mexico and companies are shutting down refineries in the storm’s path. Many had already done so while they were preparing for Tropical Storm Marco. Utilities are bracing for downed power lines and blackouts.
Experts say it’s unlikely that the U.S. will suffer from major oil or gasoline shortages due to the hurricane, as other regions fill in the gaps or turn to stored oil. And demand this summer has been at historic lows. And inventories are at record highs.
OFF-SHORE PLATFORMS
Nearly half of the oil and gas platforms in the Gulf of Mexico — almost 300 — were evacuated by Wednesday, along with most of the offshore rigs. Producers shut in 84% of the oil produced in the region, taking about 1.6 million barrels per day off the market. The Gulf region usually produces about 15% of the oil in the U.S. Producers also shut in about 61% of the natural gas produced in the Gulf. While some oil production is temporarily suspended, experts say it’s unlikely to cause problems for supply in the U.S. There has been a surplus of oil production this year, and demand for fuel is still well below pre-pandemic levels. Producers outside the region can pick up the slack.
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REFINERIES
More than half of U.S. refining capacity is built along the Gulf Coast, where the storm is heading. Six refineries, which together have a refining capacity of about 2.2 million barrels per day, were shut down, including refineries operated by Valero, Total and Citgo.
Refineries built in hurricane regions have reinforced their facilities after prior hurricanes to withstand the storm, but it’s likely that there will be disruptions to some major refineries, Burkhard said.
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