A Hurricane Ida unknown: Economic impact on region and US

A strengthening Hurricane Ida, bearing high winds and the likelihood of flooding rain as it heads for the Louisiana coast, could damage the energy-heavy Gulf Coast economy and potentially have economic consequences well beyond the region. But a potentially more serious concern was the fate of refineries and petrochemical plants along the Mississippi River between Baton Rouge and New Orleans in or near the projected path of a storm whose maximum sustained winds were expected to reach 130 mph at anticipated landfall late Sunday. Louisiana’s 17 oil refineries account for nearly one-fifth of the nation’s refining capacity and can process about 3.4 million barrels of crude per day, according to the Energy Information Administration. Phillips 66 was halting production at its refinery on the Mississippi just south of New Orleans in Belle Chasse, Louisiana, due in part to “the potential for storm surge,” said company spokesman Bernardo Fallas. Meteorologist Jeff Masters, who flew hurricane missions for the government and founded Weather Underground, said Ida is forecast to move through “the just absolute worst place for a hurricane.” While refineries and petrochemical plants are generally built to withstand high winds, they are not necessarily prepared for high water, an increasing problem as global warming spurs higher rainfall amounts in big storms.