NOAA Anticipates Highly Active Hurricane Season: What it Means for Energy Prices

According to the National Oceanic and Atmospheric Administration (NOAA), an “active to extremely active” hurricane season is expected for the Atlantic Basin this year. The six-month hurricane season, which begins June 1, is projected to have a 70% probability of producing numerous Named Storms (top winds of 39mph or higher). These Named Storms are made up of Hurricanes (top winds of 74 mph or higher) and Major Hurricanes (winds of at least 111 mph). This outlook exceeds the seasonal average of 11 named storms. 

According to NOAA Administrator, Jane Lubchenco, “If the [hurricane] outlook holds true, this season could be one of the more active on record.” Due to these statistics, FEMA Administrators stress how vital it is for everyone to be prepared for what may lie ahead. “You can’t control when a hurricane or other emergency may happen, but you can make sure you’re ready.”

In addition to the physical damages that hurricanes cause, they also contribute to rising energy costs. KeyTex Energy Principal Chuck Lanager “Some of the biggest price spikes we’ve seen in energy prices in the last several years have been associated with hurricanes, particularly Rita and Katrina. Damage to natural gas infrastructure in and around the Gulf of Mexico can negatively impact gas supplies, driving prices up. Since a significant amount of electricity is generated by gas fired power plants, this in turn raised the price of electricity.”

For more information about this hurricane season view the full story.   

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