Hurricane Ida Causes Spike in Gas Prices as 95% of Production Shuts Down

The federal Bureau of Safety and Environmental Enforcement confirmed that firms were suspending 1.74 barrels of oil production in the Gulf amidst the threat of Hurricane Ida.

Ida made its landfall at Port Fourchon, Louisiana, which is near the Louisiana Offshore Oil Port, which is known to be the largest privately-owned crude terminal in the United States.

Because of the impending effect of the storm, which has caused President Biden to declare a major disaster across the state of Louisiana and other affected areas, around 94 percent of the Gulf of Mexico’s natural gas production was shut down. 

President Biden said this in a statement: “The most important thing I can say right now is that everyone, everyone should listen to the instructions from local and state officials, just how dangerous this is. And take it seriously.

It’s not just the coasts. It’s not just New Orleans. It’s north as well. The rainfall is expected to be exceedingly high.”

“Based on data from offshore operator reports submitted as of 11:30 CDT today, personnel has been evacuated from a total of 288 production platforms, 51.43 percent of the 560 manned platforms in the Gulf of Mexico,” authorities say.

Recommended Read: Hurricane “Ida”: US Gulf Coast Braces for Life-Threatening Storm

According to the president of Lipow Oil Associates in Houston, Andrew Lipow, gas prices will likely rise about 10 cents per gallon in some markets if New Orleans refineries take a direct hit from the storm. Ahead of Hurricane Ida’s landfall, however, the price of oil had already begun to rise.

Said to be one of the most powerful storms ever to hit the United States, Ida made landfall at around 12:50 p.m. ET on Sunday, according to the National Hurricane Center, and has since caused the death of one individual, the Ascension Parish Sheriff’s Office confirms.

Authorities say that all of the oil facilities will be inspected after the storm has passed.

“Once all standard checks have been completed, production from undamaged facilities will be brought back online immediately. Facilities sustaining damage may take longer to bring back online.” says the Bureau of Safety and Environment Enforcement on their website.

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