As if that wasn't enough, Hurricane Ida also caused oil and gas production to be disrupted by reversing its course. This forced hospitals to stay put with patients who couldn't move and almost shutting down the internet in New Orleans.
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According to the Bureau of Safety and Environmental Enforcement, 95.6% of Gulf of Mexico's current oil production and 93.7% of Gulf of Mexico's gas production were shut down due to Hurricane Ida. The storm made landfall in Louisiana as a strong Category 4 hurricane. Offshore Gulf operators were forced to evacuate their personnel by Ida. As of Sunday, workers had been moved off 288 production platforms (51.4% of all manned platforms in this area) and 11 rigs (100% structures in the region).
BSEE also reported that 10 dynamically positioned rigs, which are not moored on the seafloor but can move around in a short time, had moved out of the storms' path. They account for 66.7% of all dynamically placed rigs in Gulf of Mexico.
Experts told CNN that a hurricane affecting this region is the most serious threat to the oil industry. It could also impact the transportation of fuel to the East Coast. Andy Lipow, president and CEO of Houston-based consultancy firm Lipow Oil Associates told CNN that six New Orleans refineries are currently closed. These six refineries, which include PBF and Phillips, Shell, Marathon and two Valero refineries, produce 1.7 million barrels per hour, or 9%, of the country's total.
Lipow stated that three of the Baton Rouge's refineries, Placid, Exxon and Kratz Springs, were still operating at a reduced capacity. These refineries produce approximately 700,000 barrels per day or 3.5% of the daily U.S. consumption. These refineries remain operational, but some analysts expect that oil and gas prices will rise in the aftermath of storms.
Lipow stated that it is now up to the local authorities to determine the extent of flooding and wind damage caused by the hurricane.
According to the BSEE, oil and gas production facilities will need to be inspected once the storm has passed. Facilities that aren't damaged will be restored immediately. However, those that are damaged may take longer to come back online.
