MARY LOUISE KELLY, HOST:
Oil companies are shutting down production in the Gulf of Mexico in anticipation of Hurricane Isaias. It's expected to make landfall later tonight, maybe early tomorrow morning. From member station Houston Public Media, Natalie Weber is here to tell us what this means for consumers. Hey, Natalie.
NATALIE WEBER, BYLINE: Hello.
KELLY: Hi. So we've been talking on the show all week about how people are preparing for the hurricane, stocking up on food and water and sandbags, all sorts of stuff. We haven't focused yet on the hundreds of oil and gas platforms in the Gulf that are also getting ready. What do the preparations look like?
WEBER: Sure. So oil companies really started preparing earlier this week, just like, you know, many people. And they started evacuating their offshore production and drilling sites around Wednesday. But that really ramped up yesterday. So think companies like Shell, BP and Chevron, they've all been monitoring the storm and are among those that have ordered evacuations.
I spoke with Erik Milito. He's the president of the National Ocean Industries Association, which is an industry group for offshore energy companies. He says these companies are pretty used to storm preparation because hurricanes are kind of just a routine part of life in the Gulf.
ERIK MILITO: We want to make sure that we're producing our energy out there, but at the same time, our industry knows we got to take breaks when you have these types of hurricanes come through.
WEBER: So, so far, a little bit over a third of oil platforms in the Gulf have been evacuated. And that number is, according to the Marine Minerals Administration, which is part of the Department of the Interior.
KELLY: Interesting, a little over a third. Do we know, Natalie, how this could affect overall U.S. oil production?
WEBER: Right. So according to federal estimates, the U.S. produces just under 14 million barrels of oil per day. Now, with the shutdown, the federal government shows that oil production in the Gulf has decreased by nearly 1.5 million barrels per day. That's about two-thirds of oil production in the Gulf. But kind of zooming back out, it's roughly 10% of total U.S. oil production.
KELLY: So I know what people listening want to know next, which is, what about me? How does this affect gas prices at the pump and what I'm going to pay to fill up my car? Do we know?
WEBER: You know, I think a lot of consumers are asking that question right now. Gas prices were already on the rise because of the U.S. and Israel's war with Iran. But I spoke with several energy experts who are optimistic that there won't be much of an impact on gas prices due to Hurricane Isaias. That's because the storm isn't really expected to hit Texas or even much of Louisiana, where a lot of U.S. refineries are located. But even so, Don Redman, who's a spokesperson for AAA Louisiana, says gas stations may choose to raise their prices slightly to make up for any losses during the storm. But he also did say that strict laws against profiteering will deter them from major price hikes.
DON REDMAN: They may have elevated price for a few weeks rather than increasing that price high then all of a sudden have the state attorney general breathing down their neck, accusing them of profiteering.
WEBER: He says major price hikes usually only happen when there's significant damage to refineries. But again, that's not really expected to happen with this hurricane.
KELLY: And last thing, do we know how long the facilities that are shut down could stay shut down?
WEBER: That really depends again on the impact of the storm. As of right now, Hurricane Isaias is expected to make landfall as a Category 3 hurricane, and that is, of course, a major storm. Now, when there aren't major power outages or damage caused by the hurricane, it usually takes about a week for these facilities to resume their operations.
KELLY: Natalie Weber, with Houston Public Media. Thanks for your reporting.
WEBER: Great speaking with you. Transcript provided by NPR, Copyright NPR.
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