Oil, gasoline prices rise as Ida kicks hurricane season into a higher gear

Published

4 years ago

August 31, 2021

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St. Bernard Parish residents fill up their cars and gas cans as the Louisiana coast prepares for the arrival of Hurricane Ida on Friday, Aug. 27, 2021 in New Orleans.

Chris Granger | The Times-Picayune | The New Orleans Advocate via AP

Hurricane Ida temporarily shut down a critical swath of U.S. oil production and refining operations, and that should keep crude and retail gasoline prices at already elevated levels.

Now a tropical storm, Ida swept across the Gulf of Mexico production area before slamming into the Louisiana coast Sunday as a Category 4 storm, bringing torrents of rain, high winds and high tides. More than 1 million Louisiana utility customers were without power early Monday.

The energy industry was working Monday to assess when it could restore refining operations across Louisiana and oil and gas production in the Gulf of Mexico, taken off line as a precautionary measure.

Oil prices were slightly higher Monday, but off their early peak, after jumping 10% last week. However, West Texas Intermediate futures, trading at about $69 Monday, are still down over 6.5% for the month. Nearly all Gulf of Mexico oil production was shut in, accounting for about 15% of the U.S. total.

“The reaction is mixed because we avoided the worst-case scenario,” said John Kilduff, partner with Again Capital. “But supplies are tight, and that could impact prices, especially since we are moving into the peak period for storms, and weather worries are going to persist around the market for the next several weeks. As for supply, the cupboard was kind of bare going into this.”

The shut in operations in the Gulf of Mexico should resume to normal if no damage is found. The hit to supplies from the hurricane comes as OPEC+ meets this week.

OPEC+ is widely expected to restore the 400,000 barrels a day of production it had previously committed to return to the market. The Biden administration had asked Saudi Arabia and OPEC for more supply to be restored.

But the cartel and its associates, like Russia, are expected to restore only the planned amount of oil to the market. “They’re not coming to rescue us from $70 oil,” said Kilduff.

Crude inventories are at the lowest level since January 2020. In data reported last week, crude supply fell for a third straight week while fuel demand rose to the highest level since March 2020, according to the Energy Information Administration.

Price impact for Labor Day

Gasoline supplies could also be impacted temporarily by Ida, with refineries shut down across the region. The Colonial Pipeline, a key artery transporting gasoline from Houston, across the South and up to the Northeast, was partially shut down. The pipeline expects to resume service once the system is assessed. Terminals continued to distribute gasoline.

“The consumer should not expect gasoline prices are going to go down this week,” said Andrew Lipow, president of Lipow Oil Associates. Analysts expect gasoline prices to rise 5 cents to 10 cents per gallon by the Labor Day weekend for some consumers, particularly in the southern and eastern U.S.

The average national price for unleaded gasoline was $3.15 per gallon Monday, down a penny from a week ago, according to AAA. The price is the highest for a Labor Day weekend in seven years and up sharply from the $2.23 per gallon price at this time last year.

It’s unclear when refining operations will be restored to normal, since it may be difficult to move personnel back to the impacted area.

“Pretty much everything in Baton Rouge, New Orleans area is shut down, representing 12.5% of the nation’s refining capacity,” said Lipow.

Lipow said ExxonMobil is currently shutting down its entire refining operation in Baton Rouge, responsible for 540,000 barrels a day. Two other refineries in Mississippi remain in operation, but the area is under tornado and flood watch, he said. ExxonMobil said its Baton Rouge refinery was not harmed but it is shutting down operations to stabilize them.

Kinder Morgan’s Plantation pipeline, which also takes gasoline across the southeast, was operating Monday, but its Baton Rouge terminal was without power. Lipow said Plantation transports gasoline from Louisiana refineries, while Colonial also receives oil from Texas refineries.

“No facilities, as far as we hear now, appear to have any serious physical damage, which is good news for consumers,” said Kilduff. But the industry is watching to see how soon operations will be restored and whether refineries will be impacted by power outages.

“The electrical situation is the big unknown right now,” said Kilduff. If refineries are impacted, that could mean gasoline prices would rise even more.

Gasoline demand in the U.S. was a strong 9.57 million barrels a day, the Energy Department reported in its most recent weekly data. Weekly refined product demand reached another post pandemic high and a level not seen since August 2019, according to TortoiseEcofin. The top three weekly demand readings for gasoline have been in the last several weeks, it said.

“This holiday weekend, there could be epic gasoline demand if trends hold up,” said Kilduff.

Memories of Katrina

At the same time, the shutdown of economic activity, due to Ida, has resulted in a loss of demand for oil. Tom Kloza, head of global energy research at Oil Price Information Service, said he expects the loss of Gulf of Mexico production to have little impact.

“The demand destruction from Ida is probably a little bit more significant than the lost production that will accrue from the Gulf of Mexico,” he said.

Analysts said the impact of Ida on energy prices was nothing like that of Katrina, which made landfall in Louisiana 16 years ago to the day.

“The storm may draw similarities from a geographical perspective, but the sequel has a less than similar impact on the energy markets than Katrina did,” wrote Michael Tran, commodities strategist at RBC. “In fact, historical rules of thumb have changed. Hurricanes are no longer bullish for oil prices. In fact, storms can actually have longer lasting, medium- term bearish ramifications.”

At the time, the U.S. produced just 5.2 million barrels a day, and the Gulf was responsible for 1.3 million barrels a day, compared to 1.6 million barrels a day.

“Hurricane Katrina devastated offshore oil production in the US Gulf Coast in 2005, prior to the shale revolution when offshore production comprised a much larger portion (nearly 25%) of total US output,” Tran noted.

Environment

As Texas power demand surges, solar, wind and storage carry the load

Published

5 hours ago

October 24, 2025

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As Texas power demand surges, solar, wind and storage carry the load

Texas solar battery storage — Photo: Avangrid

Electricity demand is surging in Texas, and solar, wind, and battery storage are meeting it.

According to new data from the US Energy Information Administration (EIA), electricity demand across the Texas grid managed by the Electric Reliability Council of Texas (ERCOT) hit record highs in the first nine months of 2025. ERCOT, which supplies power to about 90% of the state, saw demand jump 5% year-over-year to 372 terawatt hours (TWh) – a 23% increase since 2021. No other major US grid has grown faster over the past year.

Solar and wind keep ERCOT’s grid steady

The biggest growth story in Texas power generation is solar. Utility-scale solar plants produced 45 TWh from January through September, up 50% from 2024 and nearly four times what they generated in 2021 (11 TWh). Wind power also continued to climb, producing 87 TWh through September – a 4% increase from last year and 36% more than in 2021.

Together, wind and solar supplied 36% of ERCOT’s total electricity over those nine months. Solar, in particular, has transformed Texas’s daytime energy mix. From June to September, ERCOT solar farms generated an average of 24 gigawatts (GW) between noon and 1 pm – double the midday output from 2023. That growth has pushed down natural gas use at midday from 50% of the mix in 2023 to 37% this year.

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Battery storage is filling in the gaps

Batteries charge during the day when wind and solar generation are the highest, and they produce electricity when generation from wind and solar slows down. ERCOT began reporting battery output separately in October 2024 in its hourly grid data, and it’s clear that batteries are now helping to smooth out evening peaks. This past summer, batteries supplied an average of 4 GW of power around 8 pm, right as solar production dropped off.

Natural gas is flatlining

Natural gas is still Texas’s dominant power source, but it isn’t growing like it used to. Between January and September, gas-fired plants generated 158 TWh of electricity, compared to 161 TWh in 2023. Gas comprised 43% of ERCOT’s generation mix during the first nine months of 2025, down from 47% in the first nine months of 2023 and 2024.

More demand growth ahead

The EIA expects Texas electricity demand to keep rising faster than any other grid in the US. In its latest Short-Term Energy Outlook, the EIA projects ERCOT’s demand will climb another 14% in the first nine months of 2026, reaching 425 TWh. That means Texas will need even more solar, wind, and battery storage to keep up with its breakneck growth.

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Environment

Chevy Equinox EV and another Cadillac electric SUV recalled due to tire defect

Published

6 hours ago

October 24, 2025

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Chevy Equinox EV and another Cadillac electric SUV recalled due to tire defect

GM is recalling nearly 23,000 Chevy Equinox EV and Cadillac Optiq models due to a defect where the tire tread could fall off.

GM is recalling more Chevy Equinox EV models

In a letter sent to the National Highway Traffic Safety Administration (NHTSA), GM said it has decided to issue a safety recall for certain Chevy Equinox EV and Cadillac Optiq models from model years 2025 to 2026.

This time, it isn’t necessarily GM’s fault. The vehicles may be equipped with 21″ all-season tires that Continental Tire is recalling.

According to Continental, the tires were produced during the week of October 6, 2024, and may have a defect where the tire tread could partially or fully detach. The records show the defect is due to a nonconforming tread base rubber compound.

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Owners of affected vehicles may notice unusual tread wear or bulging, vibration while driving, or tire noises. GM is unaware of any incidents related to the defect, but is issuing the recall out of an abundance of caution.

Cadillac-Optiq-EV-recall — Cadillac Optiq EV (Source: Cadillac)

On September 18, 2025, GM inspected the assembly plant and confirmed there were no suspect tires in stock. The 21″ tires come standard on RS trims and are optional on LT1 and LT2 grades.

Although GM is recalling 22,914 Chevy Equinox EVs and Cadillac Optiqs, it estimates that only about 1% of them have the defect.

The recall includes:

2026 Cadillac Optiq: 214
2026 Chevy Equinox EV: 1,832
2025 Cadillac Optiq: 3,468
2025 Chevy Equinox EV: 17,400

GM dealers will check all four tires and replace them if needed, free of charge. Dealers were notified on October 16. Owner notification letters are expected to be mailed out on December 1, 2025.

You can contact Chevrolet’s customer service number at 1-800-222-1020 or Cadillac’s at 1-800-333-4223. GM’s recall number is N252525030. Owners can also call the NHTSA hotline at 1-888-327-4236 or visit the nhtsa.gov website for more information.

The Chevy Equinox EV is now the third best-selling EV in the US, trailing only the Tesla Model Y and Model 3. Meanwhile, Cadillac’s entry-level Optiq SUV is the fifth-most-popular luxury EV. The recall is minor and only affects a small percentage of models, so it’s not expected to have a major impact.

If you want to test one of them for yourself, we can help you get started. Check out our links below to find available Chevy Equinox EV and Cadillac Optiq models near you.

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Environment

Podcast: TSLA earnings madness, Rivian layoffs, Ford pauses F-150 Lightning, more

Published

7 hours ago

October 24, 2025

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Podcast: TSLA earnings madness, Rivian layoffs, Ford pauses F-150 Lightning, more

In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Tesla’s earnings madness, Rivian layoffs, Ford pausing F-150 Lightning, and more.

The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.

As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.

After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:

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Here are a few of the articles that we will discuss during the podcast:

Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:

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