Aug 31, 2021: Energy companies are launching a day-long inspection of facilities affected by the hurricane Ida, as widespread power outages and coastal floods have hampered the resumption of oil and gas processing plants.

Hurricane Ada cut off at least 94 percent of Gulf of Mexico’s oil and gas production and caused “catastrophic” damage to Louisiana’s grid.

Utility officials say power outages could last up to three weeks, and efforts to repair and restart energy facilities are slowing, which could take at least two weeks to fully start work.

Last year’s hurricane caused a power outage that left oil processing plants on Lake Charles in Louisiana idle for five weeks, costing owners millions of dollars.

“You can’t just turn the switch on and resume production at the refinery,” said Robert Yawger, director of energy futures at Mizuho Securities. “My observation is it would be up to two to four weeks,” he said.

Hundreds of oil production platforms remained empty and about 1.1 million homes and businesses in Louisiana and Mississippi lost power Monday afternoon.

The Energy Utility Corporation, Louisiana’s largest power utility, has warned of “catastrophic” damage to transmission lines from hurricane Ida. The utility said a tower collapsed at the height of the storm and its power lines fell into the Mississippi River.

A spokesman said ExxonMobil Corporation had stopped work on its 520,000 barrels per day (bpd) of Baton Rouge oil processing and chemical complex due to a shortage of electricity and raw materials. Spokesman Bernardo Floss said Philips 66 would inspect the aftermath of the storm at a refinery in the worst-hit area of Louisiana.

The closure because of Hurricane Ida could help push up petrol prices by 5 to 15 cents per gallon, tracking firm Gas Buddy said. Petroleum analyst Patrick Dehaan said the rise in prices would depend on how quickly electricity and a major fuel pipeline could resume operations.

The Colonial Pipeline Company, the largest U.S. fuel pipeline network, expects to begin pumping petrol and diesel Monday evening on closed lines from Houston to Greensborough, North Carolina.

Its network supplies about half of the gasoline used along the US East Coast, and the expansion in May led to fuel shortages.

Hurricane Ada’s blow to the oil industry is making this Labor Day perhaps the most expensive for American drivers since 2014.

Patrick Dehaan, head of petroleum analysis at Retail Tracker Gas Buddy, said as a result of the Hurricane Ida the national average price of regular unleaded gasoline should reach $3.18 per gallon this weekend.

Oil companies began surveying offshore platforms for losses. Royal Dutch Shell planned a flyover of its properties on Monday after the worst of Hurricane Ida was over, and BPPC, BHP, Chevron Corporation and ExxonMobil also said they were reviewing offshore facilities.

Dozens of commercial shipping ports from New Orleans to Pascagoula, Mississippi remained closed on Monday.

The closure because of Hurricane Ida includes the Louisiana Offshore Oil Port (LOOP), the largest crude oil export and import terminal in the United States.

Hurricane Ida made landfall near Port Fourchon, LOOP’s land base. Oil port officials were not available for comment.

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