Brief
Isaias threatens Gulf refineries, could lift U.S. fuel prices
Experts warn that power outages at Mississippi and Alabama plants could push diesel toward $7 a barrel.
By Felo News Desk · Published
Hurricane Isaias, now a major hurricane, is expected to pass the Gulf Coast while posing flood and power‑outage risks to two refineries that together account for about 2.4% of U.S. refining capacity, according to industry analysts.
What happened
Isaias strengthened into a major hurricane on Friday and moved toward the Gulf Coast, where preparations for storm surge and high winds were under way. The Chevron facility in Pascagoula, Mississippi, and Vertex Energy’s refinery in Mobile, Alabama, are identified as vulnerable to flooding and loss of power.
What the reports add
Andrew Lipow, a Houston‑based oil analyst, highlighted the risk to the two plants, noting their combined share of national capacity. Carl Larry of Enverus said that if the plants run at reduced capacity, gasoline and diesel prices could rise a few cents, but a full shutdown could cause a price jump of up to a dollar per gallon, with diesel potentially approaching $7 per barrel. Patrick De Haan of GasBuddy estimated that a loss of roughly 500,000 barrels per day of refining capacity would have a limited impact on national gasoline prices but could affect the Gulf Coast market.
What was said
"Major issues, like a power shutdown, and the prices will spike immediately. It's possible a dollar," Larry told Independent. De Haan added, "I would expect that the shut‑in oil production will probably return pretty quickly within just a couple of days."
How it came about
Earlier this week, Felo News reported on Isaias’s approach to the Gulf Coast, including power outages affecting over 700,000 customers in Alabama and Florida. The storm has already forced the evacuation of personnel from 121 offshore platforms, shutting down almost two‑thirds of Gulf oil production, according to the federal Marine Minerals Administration.
Key facts
- Isaias threatens Chevron's Pascagoula and Vertex Energy's Mobile refineries, together 2.4% of U.S. capacity (independent.co.uk)
- Analyst Carl Larry says a full shutdown could push diesel prices toward $7 a barrel (independent.co.uk)
- About 121 offshore platforms were evacuated, cutting roughly 1.3 million barrels of oil per day (independent.co.uk)
Sources
- [1] independent.co.uk — originally reported as “Hurricane Isaias could nudge fuel prices higher if Gulf of Mexico refineries lose power”
