(Hurricane) Harvey throws a wrench into U.S. energy engine

Reuters ^ | August 27, 2017 | Ernest Scheyder and Erwin Seba

[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).

[Perseverando]

Time to fill up the POVs as we watch gas prices rise.

[Sacajaweau]

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

[Sacajaweau]

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

[Jim from C-Town]

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

[Perseverando]

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.

[yoe]

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.

[UCANSEE2]

“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.

[who knows what evil?]

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

[RayChuang88]

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).

[UCANSEE2]

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.

[Buckeye McFrog]

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).

[DoodleDawg]

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?

[robroys woman]

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.

[Obadiah]

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

[who knows what evil?]

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. :-)

[RegulatorCountry]

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.

[Jim from C-Town]

ALSO, they need to get the ETHANOL out of our gasoline. Why? Don't you like engine knocks? /s/

[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?

[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?

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.

[woodbutcher1963]

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