IEA Unlikely to Take Collective Action – 3 September 2008

The International Energy Agency (IEA) has continued to monitor the effects of Hurricane Gustav on the oil and gas infrastructure in the Gulf of Mexico and southern United States, in close consultation with the U.S. Government. It may be days before energy companies are able to fully assess the approximately 2.5 mb/d of refining and 1.3 mb/d of upstream oil capacity that was shut as a precaution. It may also take one to two weeks for operations at some facilities to be wholly restored. However, early inspections suggest that damage to oil and gas facilities has been much less widespread and extensive than expected. Because no lasting supply disruption has occurred, it is very unlikely at this time that the IEA will call for collective action by its 27 member countries.

The IEA will continue to monitor any developments which could have implications for energy supplies.