Trucking

Exxon uses strategic petroleum reserves after Aida

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ExxonMobil Corp. is using US strategic petroleum reserves to revive Louisiana’s petrol production after hurricane Ida has taken many of its devastated state refining and oil production offline.

1.5 million from government emergency stockpiles after President Joe Biden said on September 2 that the United States would be free to use all tools to increase gasoline availability and ease pressure on pump prices. I got permission to take out the crude oil in the barrel.

The White House said in an email statement, “This is such an exchange from SPR for the first time in four years, and any authority he has available to support effective response and recovery efforts in the region. Shows that it will be used. “

Gerald Herbert / AP

Details of Ida

More than 90% of the Gulf of Mexico’s oil production was shut down on September 2, four days after Ida struck the area with a gust of 150 mph. There are refineries that account for almost one-fifth of America’s crude oil processing capacity. , Louisiana is tackling fuel shortages that are hindering relief efforts while pushing up oil prices across the country.

Founded in the aftermath of the Arab oil embargo in the 1970s, a government-run emergency crude oil supply stored deep beneath a salt cave along the Gulf was used several times after the hurricane.

According to the Department of Energy, Exxon will use crude oil at the Baton Rouge refinery in Louisiana. Like loans, oil producers need to return the same amount of oil and some premium barrels to the government within a few months.

The Baton Rouge refinery has begun the process of reopening units that had been closed prior to Aida, the company said on September 1.

“Our main focus was to restore fuel production to supply the gasoline and diesel needed in the local Louisiana market,” Exxon said in an email statement.

According to traders, at least three companies are purchasing crude oil grades normally available from the Gulf of Mexico platform. The search for these rare supplies has pushed the price of Gulf Oil grades such as Mars Blend to the strongest level in months.

Based on an early flyover assessment, the Royal Dutch Shell Plc said the offshore West Delta-143 facility, which acts as a transit station for all production from Martian corridor assets, has been damaged.

In addition to offshore logistics, one important part of the infrastructure that needs to return quickly to support production recovery is the Louisiana offshore oil port. More commonly known as LOOP, it receives crude oil flowing through pipes connected to offshore oil platforms. Delivery was interrupted before the storm.

LOOP also operates an offshore terminal approximately 45 miles offshore, processing 15% of US crude oil supplies and processing the import and export of tanker-transported crude oil.

Meanwhile, pump prices are expected to reach their highest levels in the seven years entering Labor Day’s weekend. Prior to Hurricane Aida, approximately 12% of the country’s crude oil processing capacity was closed or reduced.

The national average price of regular unleaded gasoline has risen about a cent since September 2 to $ 3.18 a gallon, approaching the summer high of $ 3.19 set in early August. At that price, it will be the most expensive Labor Day fuel since 2014.

— With the support of Jeffrey Bair and Ari Natter.

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https://www./articles/exxon-taps-strategic-oil-reserve-after-ida-shuts-gulf-output Exxon uses strategic petroleum reserves after Aida

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