Gulf Coast Refineries Avert a Direct Hit From Laura

ALEXANDRIA, Va.—Refineries and chemical facilities along the Texas-Louisiana coast narrowly avoided a direct hit from Hurricane Laura, and most shut down in advance of the storm, reports the Wall Street Journal. According to the Bureau of Safety and Environmental Enforcement, those closures impact about 1.6 million barrels a day, or roughly 15% of U.S. oil output.

Hurricanes often drive up prices at the pump, but analysts think Hurricane Laura’s impact on the gasoline market would be relatively muted despite the rash of refinery closures. The U.S. has plenty of fuel on hand because the coronavirus pandemic reduced demand.

Early this morning, Hurricane Laura made landfall as Category 4 storm, carrying winds that peaked at 150 mph. The storm’s path skirted just east of the Texas-Louisiana border, missing the bulk of energy facilities in the Beaumont-Port Arthur area, the Journal reported. The condition of the Louisiana facilities was unclear early Thursday morning.

According to a report from Forbes, the refineries located from Houston east to Lake Charles were devastated by Hurricane Harvey in 2017. That area accounts for more than 10% of U.S. refining capacity, according to Mizuho Securities USA LLC.

Most refiners estimate that their facility operations will be put back online by the weekend. If that’s the case, the impact on gasoline prices would be minimal.

For more information on how to prepare for hurricanes and other natural disasters, see the NACS Convenience Store Emergency Planning and Job Aid resources. Watch the six preparedness videos or download the guides. There’s a free mobile app, too, with all job aids and videos, so employees can easily access them on their phones in an emergency. Go to http://www.saberspace.org/nacs-app.html and complete the brief enrollment, then download the app on an Apple or Android mobile device.

Crisis management Risk management Safety Supply