Here's the potential impact Hurricane Helene can have on oil and gas
Federal officials are warning that Hurricane Helene could mess with energy facilities as it barrels into the Southeast.
The storm has the “potential for significant disruptions to energy infrastructure,” the US Energy Information Administration said in a post on Thursday.
Already, more than a quarter (29%) of US oil production in the Gulf of Mexico has been paused due to Hurricane Helene, according to the Bureau of Safety and Environmental Enforcement. An additional 17% of natural gas production has been sidelined.
The EIA noted that high wind, flooding and storm surge could affect power plants and power transmission and distribution lines in the region.
However, Hurricane Helene appears poised to spare Gulf Coast refineries. These facilities — which churn out gasoline, diesel and jet fuel for much of the country — lie mostly to the west of the storm’s track.
That’s why Andy Lipow, president of consulting firm Lipow Oil Associates, said in an email he does not expect gasoline or diesel prices to be impacted in a significant way.
However, Lipow did caution that that power outages and flooding could potentially shut down pipeline pumping stations and terminal operations in the region.
That, in turn, could reduce supplies of gasoline, diesel and juet fuel to the mid-Atlantic region through Washington, DC, and Baltimore.
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