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Hurricane Ida was the second-most damaging hurricane to strike the U.S. state of Louisiana on record, only behind Hurricane Katrina, and is tied for the strongest landfall in the state by maximum winds with Hurricane Laura a year prior and the 1856 Last Island hurricane. The ninth named storm, fourth hurricane, and second major hurricane of the 2021 Atlantic hurricane season. Hurricane Ida originated from a tropical wave in the Caribbean Sea that developed into a tropical depression on August 26.
Hurricane Ida, the storm has wreaked havoc on the region’s biggest industry – oil and gas. Ida’s ferocious winds and storm surge made a direct hit on Port Fourchon, the nation’s most important hub for the offshore industry in the Gulf of Mexico.
Canadians are spending an overwhelming price to fill up at the pumps since hurricane IDA as touched down. The price of oil has been on rise since the start of the year 2021 and less oil is currently being produced in Canada.
The storm likely took some 13% of North American refining capacity offline. Markets seem unconcerned about crude oil supplies, though gasoline futures are up over concerns about the refineries. Ida swept across the Gulf of Mexico production area before slamming into the Louisiana coast as a Category 4 storm, bringing torrents of rain, high winds and high tides.
Fuel supplies could also be impacted temporarily by Ida, with refineries shut down across the region. The Colonial Pipeline — a key artery transporting gasoline from Houston, across the South and up to the Northeast — was partially shut down. The company said it expected the pipeline to soon pending restart protocols, according to Reuters. Terminals continued to distribute gasoline.
Energy experts are hesitant to say for sure how much of an impact North American drivers will face at the gas pump after Ida’s landfall, but early estimates suggested that it would be modest for most of the country. Despite the substantial disruption to oil production and refining, most analysts anticipate a relatively limited impact to the market as a whole. That’s not the same as no impact: Gasoline prices have already risen by several cents a gallon, and storm-influenced price fluctuations could continue for a few weeks. And gas prices were high this summer to begin with. But it’s a far cry from the intense, prolonged disruption that Hurricane Katrina memorably caused.
Please pray for people affected by Hurricane Ida and other powerful storms.
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