Skip to comments.(Hurricane) Harvey throws a wrench into U.S. energy engine
Posted on 08/28/2017 8:30:34 AM PDT by Perseverando
HOUSTON (Reuters) - A hurricane in the heart of the U.S. energy industry is set to curtail near-record U.S. oil production for several weeks, with the impact expected to reverberate throughout the country and across international energy markets.
Harvey hit the Texas shore as a fierce Category 4 hurricane, causing massive flooding that has knocked out 11 percent of U.S. refining capacity, a quarter of oil production from the U.S. Gulf of Mexico, and closed ports all along the Texas coast.
Gasoline futures jumped as much as 7 percent to their highest level in more than two years in early Monday trading in Asia as traders took stock of the storms impact.
The outages will limit the availability of U.S. crude, gasoline and other refined products for global consumers and further push up prices, analysts said.
Damage assessments could take days to weeks to complete, and the storm continues to drop unprecedented levels of rain as it lingers west of Houston, home to oil, gas, pipeline and chemical plants. And restarts are dangerous periods, as fires and explosions can occur.
So far, the federal government has not announced if it will release barrels of oil or refined products from the nations Strategic Petroleum Reserve (SPR), which holds nearly 680 million barrels of oil.
The SPR was established in the 1970s to prevent supply shocks in the wake of an embargo imposed by several members of the Organization of the Petroleum Exporting Countries (OPEC).
(Excerpt) Read more at reuters.com ...
We have sooooo many sources now. Let’s see if it’s about “supply and demand”...or gouging.
SPR should be filled to the brim at this point in time.
All of a sudden I’m feeling very selfish for being concerned about a few cents per gallon when so many are suffering the loss of so much in Texas, Louisiana, etc.
Thoughts and prayers for all affected by this incredible devastation.
Take a picture with the price of gas or whatever, even bottled water....post it along with the name of the store or filling station on FB or local newpaper.
“Gasoline futures jumped as much as 7 percent to their highest level in more than two years in early Monday trading in Asia as traders took stock of the storms impact. “
AND THAT is why the price will raise significantly. It’s not the disasters that add to the price of gasoline, it’s the SPECULATORS who need to buy another yacht.
Gas prices haven’t budged at all here in East TN over the past few days.
Considering how fuel efficient most vehicles are today, there is no longer a need for multiple blends. I totally agree with you. ALSO, they need to get the ETHANOL out of our gasoline.
So what good would releasing oil from the Strategic Petroleum Reserve to if the problem is that the refineries are all under water?
What makes this one special is all the rain.
I didn’t know rain was that big of a deal to oil rigs and refineries.
Immediately up 15 to 20 cents per gallon in my area. The price jumped on Friday before any actual damage even occurred.
That is exactly what I was expecting, but not happening...yet. Maybe this afternoon. :-)
I’m in northwestern North Carolina and went to fill up yesterday under the impression that retail price was going up, but no change. Still $2.14 a gallon. The eastern part of NC is apparently another matter, though. Different pipeline? Don’t know. We’re served by Colonial Pipeline here, large “tank farm” just south of the airport.
It would relieve some of the supply pressure due to refineries being down, thereby easing the cost burden on US citizens. Do you view this as a bad thing?
You're missing my point. The oil in the petroleum reserve is unrefined. If the refineries are down then we could empty the reserve completely and there would be no place to process it, therefore no relief to the supply pressure.
They would have bumped it up about 10 cents anyway just because Labor Day weekend.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.