Ida aftermath: Shell refinery spews chemicals, energy companies assess damage

Energy producers shut down 8% of U.S. refinery capacity ahead of Ida

Energy companies have worked to assess the extent of damage in the post-Hurricane Ida Gulf landscape as over half a million residents remain without power. 

Widespread flooding and power outages have affected over 1 million residents in Louisiana alone after the Category 4 hurricane passed through the state.

In Norco, Shell Oil’s refinery has spewed black smoke and sulfur – a process some facilities undertake as a means of containing build up of dangerous emissions when power goes out, a Shell spokesperson told FOX Business. 

CLEANUP BOATS ON SCENE OF LARGE GULF OIL SPILL FOLLOWING IDA

The extent of pollution in the area remains unknown partially due to the lack of communications, preventing state police from deploying hazmat units to handle toxic emissions. So far, the U.S. Coast Guard has received 17 calls about air releases, including multiple reports of ammonia released into the air when flares were blown out by the storm, allowing the chemicals to release, The Guardian reported. 

FILE PHOTO: The Shell Norco manufacturing facility is flooded after Hurricane Ida pummeled Norco, Louisiana, U.S., August 30, 2021. REUTERS/Devika Krishna Kumar/File Photo (REUTERS/Devika Krishna Kumar/File Photo / Reuters)

Some companies took precautions ahead of the storm by shutting production down rather than risk damage to facilities that could result in significant spillage and pollution to the surrounding area. 

About 50% of U.S. petroleum refining capacity and 51% of natural gas production capacity is located along the Gulf of Mexico. 

Ticker Security Last Change Change %
XOM EXXON MOBIL CORP. 62.59 +0.59 +0.95%
RDSB n.a. n.a. n.a. n.a.
MPC MARATHON PETROLEUM CORP. 66.80 +0.12 +0.18%
VLO VALERO ENERGY CORP. 78.66 -0.51 -0.64%
PSX PHILLIPS 66 81.25 -0.86 -1.05%

Companies including Marathon Petroleum Corp, Valero Energy Corp, Phillips 66 and Royal Dutch Shell PLC shut roughly 8% of the nation’s refining capacity, The Wall Street Journal reported. 

US LOANS EXXON REFINERY OIL FROM EMERGENCY RESERVE IN IDA'S WAKE

Tom Kloza, global head of energy analysis for Oil Price Information Service, claimed that there is "no clarity" yet around power supplies in the region. 

"If they say the southeastern parishes that house a lot of big refineries aren’t going to be back on the grid for weeks, it’s a much more serious event," Kloza told the Journal. 

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Companies will first need to inspect production facilities before resuming operations, or they risk creating environmental disasters on top of the already devastating effects of the hurricane.