Source: Forbes by Kenneth Rapoza
Hurricane Harvey (now Tropical Storm Harvey, and on his way out) has taken millions of barrels of oil out of the U.S. energy market. Fuel prices are going to rise, as in gasoline and, perhaps, the price of an airline ticket as well.
Here’s how much oil has ceased to be produced because of Harvey, according to S&P Global Platts.
Some 2.2 million barrels per day of refining capacity has been shut down because of the storm that belted the southern Texas coast on into Houston over the weekend. Houston-area refineries began closing down on Sunday due to flooding, while refineries in Corpus Christie, located closest to Harvey’s prime impact zone, were closing down at least 12 hours before the storm made landfall.
Refiners have not reported any damage so far, according to industry watchdogs at Platts. But at least 1.9 million barrels per day of oil refining capacity is still on hold.
The following plants have been or are in the process of being shut as of Sunday evening
Company Location Capacity (b/d)
|Flint Hills||Corpus Christi||296,470|
Pipelines delivering oil and gas out of Texas have also been clogged, with Platts listing three big ones on Sunday