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Valero Energy Executive Director Bill Day and Louisiana Oil & Gas Association President Don Briggs on Hurricane Isaac’s affect on the energy sec...
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Very much.
-- hurricane -- -- increasing Havoc on the oil and gas industry 93%.
Of all gulf crude production now shut down.
Gas supplies rapidly running dry how much worse will things get joining me now is bill day executive director.
And Don Briggs president of the Louisiana oil and gas association.
Bill let's start with you.
How is this overall affecting oil refineries -- -- -- -- a dozen refineries weren't maybe 22%.
Of national production.
Most of American refining capacity is along the Gulf Coast.
Valero has to refineries in the New Orleans area and -- -- both of those down as a precaution many other oil refiners have done the same thing.
The employees have left anyway because of evacuation orders so we've gone hadn't done an orderly shutdown of the refineries as a precaution.
Luckily Valero and other companies have refineries elsewhere along the Gulf Coast and around the country that make up the difference.
And bill when I shut down my refinery that I bring up a week later in my able to increase how much output against citing catch up -- am -- behind for the rest of the year.
Your little bit behind but not for the rest of the year usually can make up that production within about a month.
And whether it's good news or bad news because of the economic slowdown refining capacity has not been -- its full level recently.
So we do have some spare capacity and we do have the ability to increase production -- those refiners.
OK and dawn breaks at the Louisiana oil and gas association.
What is worse for drivers at the pump.
Shutting down the oil platforms in the gulf that are drilling for oil vs shutting down refineries onshore that are turning that oil into gasoline.
Well it's -- -- neither one of more prolonged which we don't rarely think there's a high probability.
That that we will be shut down for prolonged period of time.
It shouldn't be a major problem at the gas pump.
Yeah and are you Don seeing lines at gas stations in Louisiana area because -- hurricane.
Well definitely you know these two storm as you well know has been sitting -- there -- turning put some time.
And people learned or heard going to of the gas -- and filling up and and just about every town in this path is doing that's so there have been a lot of -- and there's been some you know shortages of gasoline but so far not a major crisis -- Okay -- -- Lara you said you had a shot a couple of refineries are near.
New Orleans how much is the flooding that -- now expecting because -- a category one storm it's not anywhere near strong.
As Katrina was five years ago the category five heavily but how much -- the flooding make it difficult for you to open the refineries back up.
Hopefully not very much one of the lessons that we learned after hurricanes Katrina and Rita was that flood damage so especially to electrical equipment.
Can delay those restarts so a lot of that equipment -- -- and has actually been raised up in the refinery so that flooding won't affect it.
Windiz usually not an issue of refineries because refinery units are built -- -- very very high winds.
The issues are whether you have water damage.
And of course electrical power refineries use a lot of electrical power and if there's extended outages and that can affect refinery restarts.
Okay now Don brings about a gas station owner in Louisiana area.
Al technically the gas that I'm -- and out of my my tanks there.
That's stuff I paid for it cheaper prices but are my prices at the pump already going up because the next low and I bring and it's going to be more expensive Don.
Most possibility here we are expecting Korean analysts that they think that we'll see the prices.
Can rise as much is you know five to fifteen cent.
But shouldn't be much higher and that and if it does rise if there's going to be for short period of time this market very.
Along long period.
You know bill when there's a crisis like this limit realized politics is not the point but.
Given -- gas prices have more than doubled I think it is since Obama became president and -- -- another Republican Convention.
This is kind of the worst thing that can happen for a sitting presidents have gasoline prices go up even more as we near the election is -- a bill.
Well that's that -- like you said a political decision and that's really sort of low on our list of priorities top priority is of course.
Safety of our employees and safety of the communities.
And then of course getting the refineries back up and running.
So whether there's any effects from this hurricane.
Or even things like the refinery fire and -- Venezuela.
Remains to be seen.
All right -- -- San Antonio -- -- Baton -- thank you very much for being with us tonight.
And good luck to you surviving --
