Graves, Scalise: Reduced energy production in Louisiana could impact nation

In the aftermath of Hurricane Ida, skyrocketing gas prices across the country must be prevented and America’s dependence on foreign oil production should be reduced by resuming production along the outer Continental Shelf, say U.S. House Republican Whip Steve Scalise (R-LA) and U.S. Rep. Garret Graves (R-LA).

“The impacts of Hurricane Ida have caused significant damages and disruptions to energy production and fuel supplies across south Louisiana but could have national implications,” the congressmen wrote in a Sept. 8 letter sent to U.S. Department of the Interior Secretary Deb Haaland. 

In Louisiana, which is one of the nation’s top energy-producing states, several of its refineries have been severely affected by the loss of electricity, shutdown of pipelines, navigation channel closures, and pipeline leakage from the Strategic Petroleum Reserve that has hindered crude supply, among other impacts.

“Significant disruptions from Hurricane Ida have limited fuel supplies across south Louisiana and the shortage continues to inflict harm on everyday Americans,” wrote the lawmakers, who urged the secretary to work with producers to expedite efforts to resume domestic energy production in the Gulf of Mexico as quickly as possible.

And while Reps. Graves and Scalise said they appreciated authorization by the Biden administration to release oil from the U.S. Department of Energy’s Strategic Petroleum Reserve, they said more action is required. “We have strong concerns about the impact of this shut-in on already constrained fuel supplies in Louisiana and nationally,” they wrote. “History suggests there is potential for national price and supply implications.”

For example, following Hurricanes Katrina and Rita in 2005, national gasoline prices spiked 75 cents per gallon, according to their letter, and in 2008, the impacts of Hurricanes Gustav and Ike resulted in spikes of up to $1.40 per gallon. 

“While we recognize that our domestic production of energy has increased since that time, it is important to note that post-Hurricane Ida production estimates indicate a loss of 1.6 million barrels a day for over 10 days,” the congressmen wrote.

Quick action by the Department of the Interior to resume the outer Continental Shelf production would help get Americans back at work, ensure health care remains available, and would keep people, goods and services moving, wrote Sens. Graves and Scalise. 

“Your action can power our nation’s economy with affordable domestic energy from the Gulf of Mexico rather than West Siberia or the Urals-Volga areas in Russia or the Middle East,” they wrote.