UNITED STATESNews and Media Releases
Gasoline Industry Background & Resources
23/09/2008
Post-Hurricane: Gasoline Infrastructure Disruptions Fact Sheet. Get the facts about how hurricanes affect gasoline infrastructure and how consumers can help.
Hurricanes Gustav and Ike led to the near-complete shutdown of the oil and natural gas infrastructure and production in the Gulf area, a major supplier of U.S. energy. The Gulf Coast region of Louisiana, Mississippi and Texas accounts for nearly half of the U.S. refining capacity at 46 percent and the Gulf of Mexico accounts for about 25 percent of the oil and 15 percent of the natural gas produced in the United States. (Source: American Petroleum Institute, 2008)
While Motiva and Shell are working hard to meet the needs of consumers in the market, supplies are tight and some markets are experiencing temporary outages. To help better understand the complexities of the oil and natural gas infrastructure and the effect on supply seen throughout the country following the storms, we’ve compiled the following background information with help from the American Petroleum Institute (API, www.api.org).
Effect on the refineries
- In advance of a tropical storm or hurricane, the industry begins evacuating personnel and the process of shutting down production, refining operations and pipelines. After a storm passes, companies must perform extensive inspections and damage evaluations to determine when it is safe to resume operations.
- Even if there is no damage, refinery production cannot always resume immediately. Restarting a refinery is complicated and can take several days to restore full operations. The restoration of power supplies is crucial, and electricity disruptions may occur after a hurricane.
- Refineries can also be hampered by a lack of crude oil feedstock if offshore production platforms or ports and pipelines have sustained damage or loss of power supply.
Source: American Petroleum Institute, 2008
Impact from coast-to-coast
- Refineries and pipelines originating in the Gulf Coast region are major suppliers to other parts of the nation, which is why motorists in states far from Texas and Louisiana can feel the effects of a hurricane.
- According to the Energy Information Administration (EIA), half the gasoline used on the East Coast and half of the crude oil run in refineries in the Midwest are shipped from the Gulf Coast region of the United States.
- In 2007, 1.9 billion barrels of crude oil, 1.3 billion barrels of petroleum products and 547 million barrels of finished motor gasoline were transported from the Gulf area throughout the country using all modes of delivery, including pipeline, tanker and barge.
Source: American Petroleum Institute, 2008
Consumers can help
- If we all work together to minimize unnecessary use of energy, each of us can make an important contribution in dealing with the aftermath of Ike regardless of where we live, according to the API. Consumers across the country can help in efforts to recover from this disaster by using available fuel and energy supplies wisely and efficiently.
- Motiva and Shell hope you'll join the companies and their employees in support of the American Petroleum Institute and local, state and national officials who have requested that consumers conserve fuel and avoid unnecessary driving. Conserving fuel will help provide more reliable supply to drivers in regions where supply is tight. Drivers can access fuel conservation tips at www.shell.com/us/fuelstretch.
- While Motiva and Shell are working hard to meet the needs of consumers in the market, until refineries and pipelines have resumed full capacity, conservation is a necessity.