Idalia and Energy: What You Need to Know
Amanda Eversole
Posted August 31, 2023
The thoughts of the nation are with Florida and the South as the region grapples with the devastating impacts of Hurricane Idalia. Protecting those in the path of flooding and high winds remains the top priority, and the efforts of first responders and volunteers from across the U.S. to help their neighbors show America at its best.
The U.S. natural gas and oil industry is focused on the safety of our workers and their communities, and we have taken numerous steps before and during the storm to protect workers and secure infrastructure. We’re also focused on ensuring fuel markets remain well-stocked for consumers and first responders. While Idalia has been downgraded to a tropical storm, heavy rains and strong winds continue to charge up the Atlantic coast.
API has compiled information to address common questions and concerns about potential impacts on energy infrastructure and supply, along with actions the industry takes to ensure the safety to our communities and facilities. As the storm continues, you can find this FAQ and updated information on our blog. (Additionally, with heavy detail, API’s Industry Preparedness Handbook outlines standard procedures and best practices for government and private sector officials during supply chain disruptions, weather-related or otherwise.)
How Could the Storm Affect American Energy?
Hurricane Idalia avoided Gulf of Mexico offshore oil and natural gas platforms, but producers emphasized safety and caution, including shuttering worksites and pipelines in the area. Workers evacuated in key areas as well. The natural gas and oil industry regularly works with government officials to improve preparedness for hurricanes and other disasters, and this is no exception.
What Is the Storm’s Potential Impact on Gasoline Prices?
Storms and other major events can impact prices, potentially resulting in significant price swings. We appreciate Florida and U.S. EPA regulators who have granted a gasoline volatility waiver that will allow more flexibility in supplying fuels to the state. Our industry is working hard to manage the challenges that such an event brings. Ultimately, prices are set by supply and demand and may be influenced by perceptions about future supply and demand. The biggest factor in what Americans pay at the pump is the price of crude oil. Because of this, changes in the retail price of gasoline typically track changes in global oil prices. Geopolitics, supply and demand fundamentals, inventories, seasonality, and market expectations impact oil prices.
What Guidance Can Constituents Use?
Ahead of severe weather, everyone can take steps to reduce potential risks for their families and communities. On energy use, Americans can conserve fuels and maintain regular buying habits to alleviate sudden surges in demand. Here is more guidance for constituents in storm-prone regions:
- Federal Emergency Management Agency (FEMA) – Hurricanes and tropical storms can impact any U.S. coastal area and any territory in the Atlantic or Pacific oceans, so it is important to know your local risks and recognize any preliminary warning signs. Households should have an emergency preparedness plan, which may involve gathering essential supplies and anticipating power outages.
- National Oceanic and Atmospheric Administration (NOAA) – Assemble a basic disaster supply kit and check your emergency equipment, including flashlights, generators and storm shutters. Familiarize yourself with smart actions to take before, during and after severe weather.
- Consumer Product Safety Commission (CPSC) – Many Americans use portable generators when storms disrupt their electricity, but consumers must be vigilant about the risk of carbon monoxide exposure. CPSC has guidelines for safely using generators and other household appliances during and after severe weather.
America’s natural gas and oil industry has proven strategies for responding to extreme weather events. Together, we can improve readiness and protect the safety of coastal communities and environments.
About The Author
Amanda Eversole is API’s executive vice president and chief advocacy officer, and leads efforts to integrate API’s diverse functions and develop and implement a strategic plan. Eversole came to API from JPMorgan Chase & Co., where she was managing director and head of public affairs, building the organization’s public affairs function and creating the framework for the firm’s philanthropic activities. Prior to JPMorgan Chase & Co., she served in a number of leadership positions at the U.S. Chamber of Commerce, including president of C_TEC, the Chamber Technology Engagement Center. Before joining the U.S. Chamber, she worked for RTC Relationship Marketing in business development. Eversole graduated cum laude from the College of William & Mary with a bachelor of business administration and a minor in French, and she earned an M.B.A. from the University of Pennsylvania’s Wharton School where she was a Palmer Scholar and graduated first in her class. She serves on the Board of Directors of Our Energy Policy. She lives in Virginia with her husband, their two daughters and their dog, Gus.