A Hurricane Ida wildcard: Effects on U.S. energy supply

Companies evacuated oil and gas platforms south of Louisiana ahead of Hurricane Ida but a far greater worry was potential damage to refineries and petrochemical plants in its projected path from flooding and storm surge.

Nearly 300 offshore platforms — or half the manned platforms in the Gulf of Mexico — were evacuated ahead of the storm, their production temporarily halted, the U.S. Bureau of Safety and Environmental Enforcement said on its website. Floating rigs also cleared out. In all, more than 80% of gulf oil and gas production halted, the agency said.

But a potentially more serious concern was the fate of refineries and petrochemical plants along the Mississippi River between Baton Rouge and New Orleans in or near the projected path of a storm whose maximum sustained winds were expected to reach 130 mph (209 kph) at anticipated landfall late Sunday.

Louisiana’s 17 oil refineries account for nearly one-fifth of the nation’s refining capacity and can process about 3.4 million barrels of crude per day, according to the Energy Information Administration. Many could be vulnerable to flooding. The EIA said Ida could affect local energy supply — especially transportation fuel and electricity.

Less clear is whether the domestic fuel supply might be affected. U.S. daily oil consumption is a little under 20 million barrels a day. Analysts said it was too early to say, though S&P Global Platts said the storm could halt production of 765,000 barrels a day in gulf output.

It was not immediately clear how many refineries and petrochemical plants might be shut down.

Phillips 66 was halting production at its refinery on the Mississippi just south of New Orleans in Belle Chasse, Louisiana, due in part to "the potential for storm surge,” said company spokesman Bernardo...