After Ida was angry, Exxon Mobil used the US Strategic Petroleum Reserve Business and Economic News

The oil company will obtain 1.5 million barrels of crude oil supplied by the US Department of Energy for its refinery in Baton Rouge, Louisiana.

The U.S. Department of Energy has authorized ExxonMobil to receive crude oil from the Strategic Petroleum Reserve to start fuel production, while most of the oil production in the Gulf of Mexico is still closed.

The US Department of Energy said the oil company will receive 1.5 million barrels of oil from the Department of Energy for its Baton Rouge refinery. According to a statement, similar to the loan, the agency will provide ExxonMobil with crude oil to meet immediate demand, and the company will replenish the same amount of oil and high-quality barrels within two to three months.

President Joe Biden said earlier Thursday that the United States will use all the tools at its disposal to increase the supply of gasoline and ease price pressure on gas stations. Exxon Mobil was one of the fuel producers that had to close the Louisiana plant because Ida roared ashore on Sunday. The storm caused extensive damage to the oil infrastructure and the state’s power grid. Since most of the production in the Gulf of Mexico is still in a state of suspension, gasoline prices are expected to reach their highest level in seven years before the Labor Day weekend.

Before Hurricane Ida, about 12% of the country’s crude oil processing capacity was shut down or reduced. With the restoration of power, the refinery is slowly trying to restart, but it is also difficult to ensure the supply of crude oil due to extensive damage to the petroleum infrastructure. According to the Bureau of Safety and Environmental Enforcement, more than 93% of oil production in the Gulf of Mexico is still closed.

The average price of ordinary unleaded gasoline in the United States rose by about 1 cent on Thursday to US$3.18 per gallon, close to the summer high of US$3.19 in early August. This will become the most expensive Labor Day holiday weekend for American motorists since 2014.

In an email on Wednesday, Exxon Mobil stated that the Baton Rouge refinery had begun restarting its installations, which were shut down before Ida hit southern Louisiana on Sunday.