Study Says Hurricane Ida Could Heavily Impact US Natural Gas Production

According to studies, the Hurricane Ida that hit Louisiana with high winds and heavy rain could devastate the energy-heavy Gulf Coast is the same continues in the days ahead. Economic consequences beyond the region could be experienced.

The Gulf Coast is central to the oil and natural gas companies and the chemical and shipping industries of United States. As oil and gas companies were alerted of the Hurricane the refineries and petrochemical plants were shut.U.S. Bureau of Safety and Environmental Enforcement informed that floating rigs have also been cleared out. It stated the more than 80% of natural gas production sites have been closed.

Natural gas refineries in Louisiana account for 1/5th of the refining capacity of the natural gas in United States. However, many refineries could be vulnerable to flooding. This could hit the local energy supplies especially to the transportation industry and electricity firms.

Phillips 66, the Texas based US multinational energy company also halted its production. The facility produces 250,000 barrels per day. Seeing the storms projected path, the Baton Rouge refinery of Exxon Mobil and their related pipeline systems were also closed.According to analysts, the industry has been through this many times, but Ida cloud make more damages to the natural gas and other refineries greater than the previous year Hurricane. Meteorologists say, the Hurricane would be worst of the Hurricane hit the region in past few years.