Oil industry shuts platforms, rigs, refineries before storm

NEW YORK (AP) — The energy industry is bracing for catastrophic storm surges and winds as Hurricane Laura cuts a dangerous path toward the coastlines of Texas and Louisiana.

Oil and gas producers have evacuated platforms and rigs in the Gulf of Mexico and companies are shutting down refineries in the storm's path. Many had already done so while they were preparing for Tropical Storm Marco. Utilities are bracing for downed power lines and blackouts.

“These hurricanes, they can attack the entire energy infrastructure," said Jim Burkhard, head of IHS Markit research for crude oil markets. “And it’s not just a refinery being shut down, but if a pipeline gets shut down, or the electrical grid gets damaged, it shows how integrated all these systems are: pipelines, refineries, electricity. And it’s that aggregate damage that can be so challenging to overcome.”

The oil industry was already hammered since the start of the year, struggling with low prices after the coronavirus decimated demand. At the same time, OPEC was flooding the market with crude, aiming — with success — to put American oil producers out of business.

Oil prices have recovered somewhat, but are still well below what most producers need to stay in business. This year, 60 oil and gas companies filed for bankruptcy protection, according to law firm Haynes and Boone.

Because demand for fuel remains low, experts say it's unlikely that the U.S. will suffer from oil or gasoline shortages due to the hurricane, as other regions fill in the gaps. But there could be short-term impacts, depending on how long the storm lingers.

OFF-SHORE PLATFORMS

Nearly half of the oil and gas platforms in the Gulf of Mexico — almost 300 — were evacuated by Wednesday, along with most of the offshore rigs. Producers...