Exxon taps US strategic oil reserve in aftermath of Ida’s wrath

The oil company will be getting 1.5 million barrels of United States Department of Energy-supplied crude for its refinery in Baton Rouge, Louisiana.

The U.S. Department of Energy has authorized Exxon Mobil Corp. to receive crude from the Strategic Petroleum Reserve to kickstart the production of fuels while most oil production in the Gulf of Mexico remains shut. The oil company will be getting 1.5 million barrels of DOE-supplied oil for its Baton Rouge refinery, the DOE said. Similar to a loan, the agency will provide crude oil to Exxon to meet an immediate need and the company will restock the same amount of oil plus premium barrels within two to three months, according to a statement. President Joe Biden earlier Thursday said the U.S. would use all the tools at its disposal to increase the availability of gasoline and ease pressure on prices at the pump. Exxon is among fuel producers that had to shut their plants in Louisiana as Ida roared ashore Sunday. The storm caused widespread damage to oil infrastructure and the state’s electricity grid. With most of the Gulf of Mexico’s output still offline, gasoline prices are expected to be at the highest in seven years going into the Labor Day weekend.