Updated IEA Statement on Hurricane IKE - 17 September

The IEA continues to assess the information provided by the US government and other sources to get a detailed view of the possible damage to oil and gas production facilities and refineries in the wake of Hurricane Ike. Because much of the production in the Gulf region was already shut in as a result of Hurricane Gustav, and supply is less tight, the situation is quite different from that of 2005. After Hurricane Katrina hit the Gulf of Mexico three years ago, there was extensive visible damage to rigs, refiners and pipelines. At that time, it was evident that repairs could take up to two months. This time, the damage is less visible at first sight, but requires assessments on a case-by-case basis to evaluate product loss in the coming days. In addition, the duration of outages – including electricity – is still not clear; the number of refiners requiring inspection is higher and the facilities are located from New Orleans to Corpus Christi (the refineries damaged by Katrina were mostly concentrated in the New Orleans area). Yet there is currently more flexibility in the system, notably higher gasoline stocks in Europe and spare refining capacity. Looking at prices and shipments, the market appears to be reallocating oil and products. The IEA will continue to update this site as more information becomes available.