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Hurricane Harvey: Gas Prices to Rise as Refineries Shut Down

Image: Hurricane Harvey: Gas Prices to Rise as Refineries Shut Down
(Gene J. Puskar/Associated Press)

By    |   Friday, 25 August 2017 08:47 AM

Hurricane Harvey is expected to cause gas prices to rise as refineries shut down in preparation for the storm slamming into the Texas coast.

USA Today said fuel prices could spike between 5 cents to 15 cents per gallon over the next few days.

According to reports, the average price of gas had already jumped up 1.9 cents per gallon since last week, with fuel prices sitting at $2.36 per gallon as of Thursday afternoon.

Although experts have said the Category 3 hurricane wasn’t expected to inflict severe damage on the refineries, closures in key areas of Texas could disrupt fuel supplies and lead to further price hikes.

According to the Financial Times, about 17 percent of the nation’s crude oil output is derived from the U.S Gulf of Mexico, with over 45 percent of the nation’s oil refining capacity set along the U.S Gulf Coast.

Recent reports predict Harvey to make landfall along the southern Texas Coast by Friday, with experts believing the storm would escalate in strength by then.

Speaking to the Financial Times, local meteorologist, Matt Rogers, said the storm was getting stronger and refineries were taking precautionary measures, which could affect short term output.

The Bureau of Safety and Environmental Enforcement noted that, as of Thursday afternoon, personnel had been evacuated from 39 production platforms.

This amounted to 5.29 percent of the 737 manned platforms in the Gulf of Mexico.

“It is estimated that approximately 9.56 percent of the current oil production in the Gulf of Mexico has been shut-in, which equates to 167,231 barrels of oil per day,” the report said.

“It is also estimated that approximately 14.66 percent of the natural gas production, or 472 million cubic feet per day in the Gulf of Mexico has been shut-in.”

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Hurricane Harvey is expected to cause gas prices to rise as refineries shut down in preparation for the storm slamming into the Texas coast.
hurricane harvey, gas, prices
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2017-47-25
Friday, 25 August 2017 08:47 AM
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