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(Hurricane) Harvey throws a wrench into U.S. energy engine
Reuters ^ | August 27, 2017 | Ernest Scheyder and Erwin Seba

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 storm’s 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 nation’s 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 ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; US: Texas
KEYWORDS: energy; gasoline; hurricane; preppers
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Time to fill up the POVs as we watch gas prices rise.
1 posted on 08/28/2017 8:30:34 AM PDT by Perseverando
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To: Perseverando

We have sooooo many sources now. Let’s see if it’s about “supply and demand”...or gouging.


2 posted on 08/28/2017 8:32:07 AM PDT by Sacajaweau
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To: Perseverando

SPR should be filled to the brim at this point in time.


3 posted on 08/28/2017 8:33:07 AM PDT by Sacajaweau
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To: Perseverando
This is just a chance for the oil companies to gouge the consumer. This is an easy fix. Streamline the EPA regulations and have ONE blend of gas for the entire country. This dozens of different blends is asinine and simply creates problems. Most of the other refineries in the country could pick up the slack if they where allowed to produce a single blend nationally
4 posted on 08/28/2017 8:36:21 AM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: Sacajaweau

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.


5 posted on 08/28/2017 8:36:40 AM PDT by Perseverando (For Progressives, Islamonazis & other Totalitarians: It's all about PEOPLE CONTROL!)
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To: Sacajaweau
Every natural disaster produces mean little people who will try to gouge their customers.

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.

6 posted on 08/28/2017 8:38:01 AM PDT by yoe
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To: Perseverando

“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 storm’s 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.


7 posted on 08/28/2017 8:39:18 AM PDT by UCANSEE2 (Lost my tagline on Flight MH370. Sorry for the inconvenience.)
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To: Perseverando

Gas prices haven’t budged at all here in East TN over the past few days.


8 posted on 08/28/2017 8:40:19 AM PDT by who knows what evil? (Yehovah saved more animals than people on the ark...www.siameserescue.com)
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To: Perseverando
The only problem is that with fracking opening a lot of new oil and gas fields, a major hurricane hurting supply is less of an issue than before (remember, in 2005 most of the oil and gas production was heavily concentrated in Texas, Oklahoma and Louisiana).
9 posted on 08/28/2017 8:42:04 AM PDT by RayChuang88 (FairTax: America's EconOomic Cure)
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To: Jim from C-Town
Streamline the EPA regulations and have ONE blend of gas for the entire country.

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.

10 posted on 08/28/2017 8:42:31 AM PDT by UCANSEE2 (Lost my tagline on Flight MH370. Sorry for the inconvenience.)
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To: Sacajaweau
Let’s see if it’s about “supply and demand”...or gouging.

American CEO's need to learn that the only thing price gouging accomplishes in the long run is electing Democrats (who are increasingly Communists).


11 posted on 08/28/2017 8:44:48 AM PDT by Buckeye McFrog
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To: Perseverando
So far, the federal government has not announced if it will release barrels of oil or refined products from the nation’s Strategic Petroleum Reserve (SPR), which holds nearly 680 million barrels of oil.

So what good would releasing oil from the Strategic Petroleum Reserve to if the problem is that the refineries are all under water?

12 posted on 08/28/2017 8:45:04 AM PDT by DoodleDawg
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To: Sacajaweau

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.


13 posted on 08/28/2017 8:50:37 AM PDT by robroys woman
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To: who knows what evil?

Immediately up 15 to 20 cents per gallon in my area. The price jumped on Friday before any actual damage even occurred.


14 posted on 08/28/2017 8:51:11 AM PDT by Obadiah
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To: Obadiah
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. :-)

15 posted on 08/28/2017 8:53:36 AM PDT by who knows what evil? (Yehovah saved more animals than people on the ark...www.siameserescue.com)
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To: Obadiah

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.


16 posted on 08/28/2017 8:54:48 AM PDT by RegulatorCountry
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To: UCANSEE2
ALSO, they need to get the ETHANOL out of our gasoline. Why? Don't you like engine knocks? /s/
17 posted on 08/28/2017 8:55:27 AM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: DoodleDawg

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?


18 posted on 08/28/2017 8:57:08 AM PDT by RegulatorCountry
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To: RegulatorCountry
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.

19 posted on 08/28/2017 9:05:05 AM PDT by DoodleDawg
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To: Obadiah

They would have bumped it up about 10 cents anyway just because Labor Day weekend.


20 posted on 08/28/2017 9:07:38 AM PDT by woodbutcher1963
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