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Refineries Shut Down As Isaac Approaches Gulf Coast

Oil companies are shutting down facilities in the Gulf of Mexico and withdrawing personnel in advance of Tropical Storm Isaac.



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Roughly 1.4 million barrels a day worth of refining capacity is preparing to shut down as Isaac steams toward the Gulf Coast.

John Parry, a principal analyst with IHS Herold, says U.S. gasoline reserves are already stretched thin.

“When you look at the United States gasoline inventories, we’re down near a seasonal low right now and actually several percent below where we were a year ago.”

The market is anticipating a jump in the cost of gasoline due to the shutdowns, with gas futures up 9 cents a gallon at midday. But Parry says the price hike won’t last long.

“Some regions of the country could see gasoline touch the $4.00 range for a short period of time, but I think that’ll be rather quickly corrected, in a matter of a couple-three weeks.”

Parry says those refineries taken offline will likely be back in production within a week to ten days.


Western Gulf of Mexico Recent Marine Data
Gulf oil platforms

>BSEE Tropical Storm Isaac Activity Statistics: August 27, 2012

TS Issac

Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew Schneider is the senior reporter for politics and government at Houston Public Media, NPR's affiliate station in Houston, Texas. In this capacity, he heads the station's coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments...

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