The US Department of Energy (DOE) has authorised the release of 1.5 million bbl of crude oil to ExxonMobil’s Baton Rouge refinery, and 300,000 bbl to Placid Refining, from the US strategic petroleum reserve (SPR), as the fuel supply chain continues to recover following Hurricane Ida.
It is the second time since the hurricane that the two refineries have received oil from the SPR, with the same amounts first being released on September 2, 2021. The SPR has now released a total of 3.3 million bbl of oil as a result of Hurricane Ida.
The category 4 Hurricane Ida made landfall near Port Fourchon, Louisiana, on August 29, 2021, resulting in more than 100 deaths and an estimated $50 billion (€42 billion) in damage. It was the second most destructive storm in Louisiana’s history after Hurricane Katrina. More than 1 million customers lost power, oil production was shut down and various pipelines and nine refineries ceased operating. Half of US refining capacity is located in the Gulf Coast region affected. The US Coast Guard said almost 350 oil spills have been reported.
According to the most recent Hurricane Ida response update from the DoE, four of the region’s 17 refineries are still fully shut down, with three more in the process of restarting. Around 75 percent of oil production is still shut in.
Terminals are struggling to distribute fuels to fuel stations due to ongoing power outages in some areas, particularly Baton Rouge and New Orleans, as well as a shortage of qualified tanker drivers, adding to the problems, although fuel stocks overall remain good. Emergency waivers have been issued in Port Fourchon by the US Environmental Protection Agency (EPA) allowing the sale of non-ultra-low sulphur diesel for certain uses to ease fuel supply concerns.
For more information visit www.energy.gov
