Exxon Accesses the United States Strategic Oil Reserve in the Aftermath of Hurricane Ida

Exxon Mobil Corp. has been granted permission to receive petroleum from the Strategic Petroleum Reserve in order to restart gasoline production during the closure of the Gulf of Mexico oil sector.

A total of 1.5 million barrels of fuel would be sent to the refinery in Baton Rouge by the DOE, according to the DOE’s announcement. It’s like giving Exxon a loan: the agency would give the crude oil to fulfill an emergency demand, and Exxon would replenish the same amount of oil plus premium barrels in two or three months, according to a press release.

President Joe Biden stated earlier Thursday that America would utilize all of its capabilities to improve fuel availability and alleviate pressure on the price of petrol in order to reduce costs at the pumps. In the aftermath of Hurricane Ida’s landfall, Exxon had to shut down its Louisiana refineries. As a result of the hurricane, the state’s oil infrastructure and electrical system were severely damaged. Gasoline prices are likely to reach their highest level in seven years over Labor Day weekend as much of the Gulf of Mexico’s oil production is still shut down.

Ida closed or decreased 12 percent of the country’s oil processing capacity. In spite of the electricity being restored, refineries are still struggling to operate, but obtaining crude supplies is still challenging due to the extensive damage to oil pipelines.Average regular unleaded prices in the United States climbed a penny on Thursday to $3.18 a gallon. That’s a penny less than the summer’s high of $3.19 recorded in early August.